Deductions from Gross Estate Under Philippines Tax Rules and Singapore Tax Rules

1884 Words Oct 19th, 2008 8 Pages
DEDUCTIONS FROM GROSS ESTATE
UNDER PHILIPPINES TAX RULES AND SINGAPORE TAX RULES

ADVENTIST UNIVERSITY OF PHILIPPINES
PUTING KAHOY
2008

DEDUCTIONS FROM GROSS ESTATE
PHILIPPINES TAX RULES
Funeral Expenses
For deaths occurring on or after January 1, 1998, the amount allowable as deduction shall be the lower amount between the actual funeral expenses (whether paid or unpaid) and five percent (5%) of the gross estate, but in no case to exceed two hundred thousand pesos (P200,000).
Judicial Expenses ‘Judicial expenses of the testamentary or intestate proceedings’ are those incurred in the:
• inventory taking of assets comprising the gross estate
• their administration
• the payment of debts of the estate
• distribution of the estate among
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• Debts are allowed for deduction if they are:
a. outstanding as at the date of death;
b. incurred by the deceased for his own use and benefit and
c. not reimbursable from another source
Debts are deducted against the value of the asset that is pledged as security. For example, a mortgage loan of a property shall only be deducted against the value of the property regardless of whether the property is exempt from Estate Duty.
Quick Succession Relief (QSR)
When 2 persons died on or after 01 Jan 2006, and the later death occurred not more than 24 months after the earlier death, the estate of the later death is entitled to QSR. Where the order of the 2 deaths is unknown, the younger person is presumed to have survived the older person and inherited the older person's assets. Each estate is assessed separately and the exemptions under the Estate Duty Act will apply separately on each assessment. For all quick succession deaths, a relief of varying amount would be given depending on the time period between the two deaths, as shown in the table below.
Period between two deaths Percentage of relief
6 months or less 100%
More than 6 months but not more than 12 months 75%
More than 12 months but not more than 18 months 50%
More than 18 months but not more

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