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Reviewer Tax

In: Business and Management

Submitted By epsylon
Words 4504
Pages 19
COMPILED NOTES: SABABAN, MAMALATEO & CHAVEZ

MARIVIC B. DE GRACIA
TAXATION 2
MARIVIC DE GRACIA

TRANSFER TAX
-refers to the burden imposed upon the right to gratuitously transfer or transmit property, tangible or intangible from one person to another. Filing: within 6 months from the date of death

15%-relative
30%-stranger
Filing: within 30 days from the date of donation -are taxes imposed upon the gratuitous disposition of private property. ESTATE TAX
FORMULA:

KINDS OF TRANSFER TAXES:
ESTATE TAX

NIRC
Donation mortis causa
Tax levied on the transmission of properties from decedent to his heirs
Tax on the privilege to transmit property at death Excise tax or privilege tax Effective upon death
Tax base is the net estate Net estate amounting to P200,000 is exempted 20% highest rate

DONOR’S TAX

NIRC
Donation inter vivos
Tax levied on the transmission of properties from a living person to another living person.

Gross Estate (Sec. 85)

TAX ON THE
TRANSFER OF
REAL
PROPERTY
LGC

Less:

Ordinary Deductions (Sec. 86)_____________

Equals: Net Estate before share of surviving spouse
Less:

Share of surviving spouse________________

Equals: Net estate before special deductions
Less:

Special deductions______________________

Equals: Net taxable estate
Multiply:Tax Rate (Sec 84)______________________
Equals: Estate Tax Payable
If there’s tax credit available:

Excise tax or privilege tax
Effective during the life time of the donor
Tax base is the net gift within the calendar year
Net gift amounting to
P100,000 is exempted highest rates:

Estate tax payable
Less: Tax credit____________
Equals: Final estate tax payable
LAW GOVERNING THE IMPOSITION OF ESTATE TAX
-statute in force at the time of death of the decedent governs.

1

COMPILED NOTES: SABABAN, MAMALATEO & CHAVEZ

MARIVIC B. DE GRACIA
TAXATION 2
MARIVIC DE GRACIA

GROSS ESTATE

TWO FACTORS AFFECTING THE...

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