Starting off the Estate Tax Return

Updated on July 3, 2023

By Karen G. Supapo

Filing an Estate Tax Return for the estate of your deceased relative is your first step in order for the properties of the deceased relative be transferred to the heirs. However, the processing of the estate tax return before the Bureau of Internal Revenue ("Bureau") is not as simple as filing the return and pay the tax due. The Bureau requires you to submit several documents before you can successfully file the Estate Tax Return of your deceased relative. For Estate of decedents not covered by the existing tax amnesty under Republic Act No. 11956 (R.A. No. 11956), specifically, those who have died 01 June 2022 onwards), below is the list of documentary requirements you need to submit before the Bureau:

1.     Certificate of Residency from the Barangay

Although the residency may be seen in the Death Certificate of the deceased relative, the Bureau still requires this document as a prudent approach.

2.    Certified True Copy of the Death Certificate of deceased relative from the Philippine Statistics Authority (PSA)

You need an Original Certified True Copy of the death certificate of the Deceased relative. You will need several original copies, so it would be better to request at least three (3) copies from the PSA.

3.    Certified True Copy of the Death Certificate of heirs (if there’s any)

4.    TIN of the Estate of the Deceased relative

You need to apply a Tax Identification Number (TIN) for the Estate of the Deceased relative before the Revenue District Office that has jurisdiction over the last place of residence of the Deceased relative. Fill-up BIR Form 1904 and submit it to the Bureau together with a photocopy of the Death Certificate of the Deceased relative. Make sure to bring an original Certified True Copy of the Death Certificate with you. The Bureau will also require you to submit a Special Power of Attorney (SPA) authorizing you to transact on behalf of the heirs.

5.    TIN of heir/s

Secure all the TINs of the heirs. If any of the heir has no TIN yet, you need to apply for their TIN as well. The TIN shall be verified upon submission. In some instances, the system cannot find the TIN of one of the heirs. Thus, it is best to bring with you the original Application for Registration, if you have just applied for such TIN.

6.     Checklist of documentary requirements

The Bureau will provide you their checklist which is part of their documentary requirements.

7.   Deed of Extrajudicial Settlement of the Estate of the Deceased or Affidavit of Self-Adjudication (if there is only one heir)

The Deed of Extrajudicial Settlement of the Estate of the Deceased (if there are at least two heirs, still living), or the Affidavit of Self-Adjudication by the sole heir, must be duly-notarized. The number of copies depends on the number of government agencies you need to transact with (i.e. BIR, LGU where the property is located, Registry of Deeds where is the property is located) plus a receiving copy. These government agencies require you to submit an original copy before their respective offices. Note that for Registry of Deeds, they will require you to submit the Deed or Affidavit which is duly-stamped received by the BIR.

8.    Certified True Copy of Titles of Real Properties from the Registry of Deeds

The Bureau requires you to submit a Certified True Copy of the Titles which you can request from the Registry of Deeds. The request for this document takes at least 5 days. It would be cheaper if you will request the documents from the Registry of Deeds where the property is located compared to the cost of requesting the documents elsewhere as the Registry of Deeds will impose a fee for IT network. The difference is more than one thousand pesos per document. Nevertheless, you may consider this difference as the cost of your convenience as you will save time as well as the transportation costs you have to incur in going to the proper Registry of Deeds especially if the estate involves several properties which are located in different provinces and/or cities.  

9.     Certified True Copy of Tax Declaration of real properties at the time of death

The Bureau will require you to submit a Certified True Copy of the Tax Declarations of the properties existing at the time of death. The market value stated therein will be compared to the zonal value. The Bureau will choose the higher value between the two. In some instances, the Bureau will just rely on the market value stated in the Tax Declaration as there is no zonal valuation yet. This is true especially if the Deceased relative died in the 1990s. Please note that the cost for this document is quite costly.

10.  Certificate of No Improvement issued by Assessor's Office where declared properties have no improvement

For those properties without any improvement, a Certificate of No Improvement is required by the Bureau. You can request this certification from the Assessor’s Office of the Local Government where the property is located. For some, you can wait for the release of this document within the day.

11.  Location Plan/Vicinity Map of real properties

This is an addition to the general requirements of the Bureau. The Vicinity map may be requested from the Assessor’s Office of the Local Government where the property is located. For some LGUs, the release of this document may take at least 3 working days. Note that the authorized representative needs to submit a Special Power of Attorney (SPA) authorizing such person to transact on behalf of the heirs.

12.  Special Power of Attorney (SPA) of authorized representative

The SPA must specifically state that the authorize representative has the authority to transact, process, apply, for the estate tax return, sign documents, on behalf of the heirs including the receipt of the Certificate Authorizing Registration (CAR).

13.  Identification Card of Authorized Representative

The Bureau requires you to attach a photocopy of the ID of the authorized representative.

14.  Identification Cards of all the Heirs

15.  Family Tree

The Bureau will require you to illustrate the family’s lineage (family tree) of the Deceased relative in order to easily assess who are the heirs.

Noteworthy, you will be required by the Bureau to place documentary stamps to all certificates to be submitted including the Deed or the Affidavit.

After accomplishing these documents, head to the BIR Revenue District Office that has jurisdiction over the last place of residence of the Deceased relative and queue for One-Time transaction (ONETT). The queue will take a lot of your time as the examiner will review all the documents including the Deed or Affidavit. The examiner will study the Deed if he/she should assess a donation between heirs. Please note that a general renunciation of successional rights by an heir is not subject to donor’s tax. The renunciation must pertain to the entire properties listed in the Deed such that such heir will receive nothing. If the renunciation pertains only to specific properties, such renunciation may trigger an assessment for donor’s tax depending on the value of the properties foregone as a result of such renunciation. This was clarified by the Bureau in its Revenue Memorandum Circular No. 94-2021.

After the examiner accepted your documents, he/she will assess the tax due. Such assessment shall be routed to higher authorities for approval. Once approved for payment, they will return the original documents and will issue a payment form for the certification fee (which is the ECAR).  Accordingly, you may now pay the tax due before the any of the authorized agents banks. The bank will stamp on the return as one of the proof of payment along with the payment slip. The Bureau will have to verify first your payment before receiving the Estate Tax Return and its supporting documents which will take up five (5) working days. Thereafter, you may submit the documents and they will give you a claim stub for the ECAR/s. For documentary purposes, it is a best practice to have an own file of complete set of documents submitted. Such document will come in handy for future reference.  

For estate of decedents who died on or before 31 May 2022, R.A. No. 11956 simplified the requirements in filing the tax amnesty return, which are as follows:

1.     Certified True Copy of the Death Certificate of deceased relative from the Philippine Statistics Authority (PSA). If this is not available, a Certificate of No Record of Death from the PSA plus any government-issued document that can prove the fact of death. 

2.      TIN of the Estate of the Deceased relative

3.      TIN of heir/s

4.      Government-issued Identification Card of Authorized Representative, the heirs, or transferees

     5.       Certified True Copy of Tax Declaration of real properties at the time of death

6.     Certificate of No Improvement issued by Assessor's Office where declared properties have no improvement

7.       Certificate of Deposit owned by the decedent for bank accounts and other investments

8.       Certificate of Registration of vehicles (if there is any)

9.       Certificate of Stocks (if there is any)

More importantly, R.A. No. 11956 specifically states that a Deed of Extrajudicial Settlement of the Estate is no longer required in PAYING the tax amnesty due. However, the Bureau will not issue the Certificate Authorizing Registration (CAR) until you submit the Deed Extrajudicial Settlement of the Estate. This CAR is a mandatory requirement for both the Registry of Deeds and LGU in order to transfer the title and the tax declaration, respectively, under the new owners. 

Thereafter, you need to be patient waiting for the release of ECAR/s. Considering the numerous Returns they need to review, the period of waiting before the release of the ECAR/s can take 2-3 months. After receiving ECAR/s, head now to the Office of the Assessor of the local goverment where the property/ies is/are located to transfer the property/ies' tax declaration to the names of respective heirs. And finally, to the Registry of Deeds to transfer the title of these properties and receive a new Transfer Certificate of Title. These two offices have its own documentary requirements. As such, it would be better to visit them and inquire.

If you wish to seek legal assistance from a lawyer for the estate of your deceased loved one/s, you may inquire KS Law Office at concierge@kslawph.com.