The Philippines’s National Internal Revenue Code previously laid out a table of rates that applied to estates if they were valued at certain predetermined thresholds. In order to ascertain the net value of an estate, planners were required to subtract legally allowed deductions from the value of the gross estate. So, if an estate was valued in excess of P10 million, it would owe P1,215,000 and an additional 20% of on the value of the estate over P10 million threshold. The new Tax Reform for Acceleration and Inclusion (TRAIN) law has greatly simplified this process. Graduated rates and tables have been banished in favor of a flat 6% estate tax.
See Jose Emilio M. Torres, TRAIN Law: Estate Tax and Possible Implications, BusinessMirror, January 25, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
