Question & AnswerQ&A (BIR REVENUE MEMORANDUM CIRCULAR NO. 34-2013)
The main purpose is to clarify the proper accomplishment and filing of estate tax returns to ensure complete and accurate filling out of the forms and to improve data integrity in the Bureau of Internal Revenue's Integrated Tax System.
The executor, administrator, or any of the legal heirs is responsible for sending a written notice of death to the Commissioner within two (2) months after the decedent's death or within a like period after an executor or administrator qualifies as such.
Filing is required in all cases of transfers subject to estate tax; where, though exempt from estate tax, the gross value of the estate exceeds two hundred thousand pesos (P200,000); or where the estate consists of registered or registrable property such as real property, motor vehicle, shares of stocks, or similar property requiring a BIR clearance for ownership transfer.
The estate tax return shall be filed with the Authorized Agent Bank (AAB) under the jurisdiction of Revenue District Office (RDO) No. 39 - South Quezon City.
The executor, administrator, or heir must exercise due diligence by properly accomplishing the form, completely filling out all items with values and entering "0" in boxes to indicate none or nil if there is no applicable value.
The heir or authorized representative must submit all applicable documentary requirements as prescribed in Annexes A-6 and A-6.1 of RMO No. 15-2003 along with proof of payment to the appropriate RDO.
They must process the returns per RMO No. 15-2003, scrutinize entries for completeness, notify the filer of missing/incomplete information within prescribed timeframes, require amendments if necessary, and impose penalties for violations and late filing.
Compromise penalties under Section 255 of the Tax Code as amended and prescribed by RMO No. 19-2007 may be imposed, as well as applicable penalties for late filing under the Tax Code.
Filing is required if the gross value of the estate exceeds Twenty Thousand Pesos (P20,000) for the submission of the written notice of death and more notably, if the gross value exceeds Two Hundred Thousand Pesos (P200,000) for filing the estate tax return even if exempt from tax.
The RDO or the Document Processing Division shall scrutinize and identify missing or incomplete information, issue a written notice to the filer to amend the return within five (5) days, and impose applicable penalties if the return is not properly accomplished.