Question & AnswerQ&A (Republic Act No. 1003)
The primary purpose of Republic Act No. 1003 is to amend Section 93 of Commonwealth Act No. 466, the National Internal Revenue Code as amended, specifically to clarify and provide requirements regarding the filing of estate or inheritance tax returns.
The executor, administrator, or any of the heirs, as the case may be, is required to file the return under oath in cases of inheritance or transfers subject to estate tax or inheritance tax, or both, or where the gross value of the estate exceeds three thousand pesos even if exempt from the taxes.
The return must include: (1) the value of the gross estate of the decedent at the time of death (or the part of the estate in the Philippines for nonresident, non-citizen decedents); (2) deductions allowed from the gross estate to determine net estate as defined in Section 89; (3) any ascertainable information with supplemental data necessary to establish the correct taxes.
If the estate return shows a gross value of fifty thousand pesos or more, it must be accompanied by a statement of: (1) itemized assets of the estate with their corresponding gross values; (2) itemized deductions from the estate; (3) the amount of taxes due, whether paid or still outstanding, certified by certified public accountants.
A return under oath must still be filed if the gross estate exceeds three thousand pesos, even if the estate is exempt from both estate and inheritance taxes.
Yes, but only the part of their gross estate situated in the Philippines is subject to the return and estate tax provisions.
Yes, the return must be filed in duplicate under oath.
The executor or heirs must file the return under oath and include necessary data to establish the correct taxes, implying an obligation to provide truthful and accurate information.
Section 89 of the National Internal Revenue Code defines the net estate used in determining deductions.
Republic Act No. 1003 took effect upon its approval on June 12, 1954.