30/11/2025
To settle estate taxes in the Philippines, the Bureau of Internal Revenue (BIR) requires compliance with the following core requirements:
1. Core Documents & Registration
- Death Certificate: A PSA-certified copy of the decedent’s death certificate .
- Taxpayer Identification Number (TIN):
- For the decedent (if none, apply via BIR Form 1904).
- For the estate itself (as a separate taxpayer) .
2. Settlement Documents
- Extrajudicial Settlement (EJS) or Affidavit of Self-Adjudication:
- Required if heirs agree to divide the estate without court proceedings. Must be notarized and published in a newspaper of general circulation once a week for three weeks .
- Proof of publication (newspaper clippings + publisher’s affidavit) .
3. Tax Forms & Payment
- BIR Form 1801 (Estate Tax Return): Filed within 1 year from the date of death. Includes:
- Gross estate valuation (assets at date of death).
- Deductions (e.g., ₱5M standard deduction, up to ₱10M family home deduction) .
- BIR Form 2118-EA: Payment form for estate tax (6% of net estate). Paid via authorized banks or digital platforms (GCash, Maya) .
4. Asset Valuation & Documentation
- Real Property: Certified true copy of title (TCT/CCT), latest tax declaration, and zonal value printout. Use the higher of BIR zonal value or assessor’s FMV .
- Bank Deposits/Investments: Bank certifications of balances at date of death .
- Shares/Vehicles: Stock certificates, broker statements, or LTO OR/CR .
5. Certificate Authorizing Registration (CAR/eCAR)
- Issued by the BIR after full payment of estate tax. Required to transfer titles, shares, or bank accounts .
6. Penalties & Extensions
- Late Filing: 25% surcharge + 12% annual interest on unpaid taxes .
- Extensions: Available for illiquid estates (up to 5 years for judicial settlements, 2 years for EJS) .
Estate Tax Amnesty (Optional)
- For estates of decedents who died before June 1, 2022: Pay 6% of net estate (minimum ₱5,000) with reduced documentation. Requires BIR Form 2118-EA and EJS .
