Tax Presentation
Tax Presentation
Tax Presentation
PRESENTATION
FUNDAMENTAL
CONCEPTS
of
ESTATE TAX
&
SUCCESSION
DEATH GIFT/DONATION
DONORS
ESTATE TAX
TAX
ESTATE TAX DONORS TAX
Impose on privilege to Impose on privilege to
transmit property upon death transmit property during
Rate of tax is higher lifetime
Allowed to extend filling and Rate of tax is lower
paying No extension for filling and
Exemption per tax is paying
P200,000 Exemption per tax is
P100,000
THEORIES JUSTIFYING THE IMPOSITION OF
ESTATE TAX
BENEFIT RECEIVED
REDISTRIBUTION OF
THEORY
WEALTH THEORY
PRIVILEGE THEORY
The state renders services
Results in equitable
in the distribution of the State partnership theory
distribution of wealth
decedents estate Collects the share in the
accumulation of profit
ESTATE TAX
• Tax on the RIGHT of the deceased person to transmit
his ESTATE to his lawful heirs and beneficiaries at the
TIME OF DEATH
• Levied on Net Estate
• Not on Property Transfer
BASIC CONCEPT OF
SUCCESSION AND
WILL
SUCCESSION
A mode of acquisition by virtue of which the PROPERTY,
RIGHTS AND OBLIGATION to the extent of the value
of the inheritance of a person are transmitted through his
death to another or others either by will or by operation
of law.
ELEMENT OF SUCCESSION
DECEDENT ESTATE
HEIR
KINDS OF SUCCESSION
TESTAMENTARY
Made in will executed in the form prescribed by law.
INTESTATE
No will or if there is, the same is void or nobody will succeed
MIXED
Partly by will partly by law.
KINDS OF SUCCESSOR
LEGATEE DEVISEE
EXECUTER ADMINISTRATOR
Must be:
Written, dated and signed by the hand of the testator
May be made outside or inside the Philippines
Need not to be witnessed
Not subject to formalities
CODOCIL
A supplement or addition to the will