Transfer Taxation - Part II Flashcards
(38 cards)
Explain the Tax Amnesty Act of 2018 in terms of the Estate Tax Amnesty.
To encourage the processing of unsettled estates, Republic Act (RA) No. 11213, or the Tax Amnesty Act of 2018, was signed on Feb. 14, 2019. This gave estates of decedents who died on or before Dec. 31, 2017, with or without assessments, whose estate taxes remained unpaid or have accrued as of Dec. 31, 2017, the opportunity to settle their tax obligations without having to pay the penalties that had accumulated due to the failure to pay the estate tax on time. Aside from dispensing with the penalties and interest, the amnesty also imposed the 6% estate tax under the TRAIN Law at every stage of transfer of the property.
Republic Act (RA) No. 11213 - What’s the current deadline for the Estate Tax Amnesty?
June 14, 2025
Republic Act (RA) No. 11213 - For those availing the Estate Tax Amnesty, which allowable deductions are applicable?
The deductions remain those applicable at the time of the death of the decedent.
Republic Act (RA) No. 11213 - Meanwhile, if the deductions exceed the value of the gross estate, how much would be the minimum estate amnesty tax for the transfer of the estate of each decedent?
There would be a minimum estate amnesty tax for the transfer of the estate of each decedent in the amount of P5,000.
Republic Act (RA) No. 11213 - In case there are properties included in the Estate Tax Amnesty availment which are the subject of a taxable donation/sale, what taxes are imposed?
They shall be assessed donor’s tax/capital gains tax/other applicable taxes at the time of the donation/sale, plus penalties, if applicable.
What is a pre-deceased spouse?
A pre-deceased spouse is a term used in legal and inheritance contexts to refer to a spouse who has died before another spouse.
What is a conjugal property?
Conjugal property refers to property or assets that are jointly owned by a married couple. It typically includes assets acquired by either spouse during the course of the marriage, regardless of which spouse’s name is on the title or deed.
For every how many years after the latest revision shall the Schedule of Zonal Values be automatically adjusted?
Once every three (3) years
What are prenuptial agreements?
It is originally a practice wherein the parents of the bride and the groom negotiated on behalf of the new couples. It is an agreement made between two people before marrying that establishes rights to property and support in the event of divorce or death.
What are other names for prenuptial agreements?
Premarital agreements or ante-nuptial agreements
What are the three requisites for a valid prenuptial agreement?
- Must be in writing
- Must be executed prior to the celebration of marriage
- Must be signed by the future spouses
Are modifications to the prenuptial agreements allowed after the celebration of marriage?
No.
Why is preparing a prenuptial agreement in the Philippines is relatively easy?
It is not required by the laws to be registered in a government office for the agreement to be binding between the two parties.
Where does the Philippine law require the prenuptial agreement to be recorded?
- Local Civil Registry where the marriage is celebrated
- Register of Deeds - the province where the affected property is located.
Why do the Philippine law require the prenuptial agreement in the Local Civil Registry and the Register of Deeds?
This requirement is for the security for properties which may be affected by the agreement, and for the binding of third parties.
What are the three characteristics of property relations?
- Applicable to married persons only.
- Separates common and exclusive property.
- Subject to pre-nuptial agreement, law, and customs.
Discuss Article 75 of the New Family Code.
The future spouses may, in the marriage settlements, agree upon the following systems of property relationship:
(1) Absolute community of Property (ACP)
(2) Conjugal partnership of gains (CPG)
(3) Complete separation of property, or
(4) Any other regime.
In the event the couple had not adopted or agreed upon a system before their marriage, what does Article of 75 of NFC prescribe?
Either Conjugal Partnership of Gains or Absolute Community of Property
When was the New Family Code effected?
August 3, 1988
What is the requirement for the Conjugal Partnership of Gains property relation?
If marriage was before August 3, 1988
What is the requirement for the Absolute Community of Property property relation?
If marriage was on or after August 3, 1988
Discuss Article 77 of the New Family Code.
It thereof provides for the requirements for execution and modification of marriage settlement. For marriage settlement to be valid, the following must be present:
- it must be in writing;
- It must be signed by the parties;
- Executed before the celebration of marriage; and
- Registered in the Civil Register where the marriage contractis recorded.
If the decedent was married with surviving spouse, what should the property in the gross estate be classified into:
(1) Common property - owned by both spouses (2) Exclusive property - owned either by husband or by wife
What refers to the property owned by the husband?
Capital property
