To file and pay Philippine estate tax, you complete BIR Form 1801, attach the supporting documents for the decedent’s assets and heirs, and submit it with payment of 6% of the net estate at an Authorized Agent Bank within the Revenue District Office that covers the decedent’s last residence. The deadline is one year from the date of death. Once payment is recorded, you apply at the same RDO for an electronic Certificate Authorizing Registration, the clearance document that lets you transfer titles, vehicles, and bank deposits into the heirs’ names.
Responsibility for filing falls on the executor or administrator of the estate. If no one has been formally appointed, the heirs themselves file directly.
What the 6% Applies To
The tax is a flat 6% of the net taxable estate, not the gross estate.1The Lawphil Project. Republic Act No. 10963 – Tax Reform for Acceleration and Inclusion (TRAIN) Start with the gross estate, which is the fair market value of everything the decedent owned at the time of death. For Philippine real property, fair market value is the higher of the BIR zonal value or the local assessor’s value on the tax declaration. Bank deposits, stocks, vehicles, jewelry, and other assets go in at their value on the date of death. A citizen or resident decedent’s gross estate includes worldwide property.
From that gross figure, subtract the deductions that apply, then multiply the result by 6%. If deductions equal or exceed the gross estate, no tax is owed, but a return is still required.
Deductions That Reduce the Taxable Estate
For a citizen or resident alien decedent, the main deductions under the TRAIN Law are:
- A standard deduction of ₱5,000,000, which is automatic and needs no supporting documents.
- The family home, up to ₱10,000,000. Anything above ₱10 million stays in the taxable base.
- Claims against the estate, meaning debts the decedent owed at death. Loans taken within three years of death require proof of how the proceeds were used.
- Transfers for public use to the Philippine government or its subdivisions.
- A vanishing deduction on property the decedent inherited within the past five years that was already taxed in another estate, computed on a sliding scale.
- Retirement benefits received by heirs under Republic Act No. 4917, when included in the gross estate.
A quick worked example: a citizen’s estate of ₱20 million that includes a family home valued at ₱8 million, with no other special deductions, has a net taxable estate of ₱7 million (₱20M minus the ₱5M standard deduction minus the ₱8M family home). The tax due is ₱420,000.
Documents You Need Before Filing
A missing document can send you home from the BIR window, so assemble the full set first.
- A PSA-issued certified true copy of the death certificate.
- A TIN for the estate itself, separate from the decedent’s personal TIN. Apply using BIR Form 1904 and choose “Estate (Non-Business)” as the taxpayer type, filing at the RDO with jurisdiction over the decedent’s last residence.2Bureau of Internal Revenue. BIR Form No. 1904 – Application for Registration
- A TIN for each heir named on the return.
- Certified true copies of Transfer Certificates of Title or Condominium Certificates of Title for each real property, plus the tax declaration as of the date of death.
- Proof of other assets: bank certifications showing balances at date of death, stock certificates with valuation, LTO records for vehicles, and equivalent documentation for other holdings.
- A notarized deed of extrajudicial settlement, if all heirs agree on the division and no will exists. The deed must be published once a week for three consecutive weeks in a newspaper of general circulation before the BIR processes it. If there is a dispute or a will requiring probate, a court order replaces the deed.
- A CPA-certified financial statement when the gross estate exceeds ₱5 million.
Heirs who live abroad and cannot appear at BIR offices need to sign an apostilled Special Power of Attorney naming a representative in the Philippines. The SPA must state the specific purpose (estate tax settlement) and the representative’s full name.2Bureau of Internal Revenue. BIR Form No. 1904 – Application for Registration
Filing BIR Form 1801
BIR Form 1801 is the estate tax return. You enter the complete inventory of the gross estate, list every deduction you’re claiming, and compute the tax due. The form is available on the BIR website and at revenue offices.
File the completed return and supporting documents at any Authorized Agent Bank within the Revenue District Office covering the decedent’s last residence.3Bureau of Internal Revenue. Guidelines and Instructions for BIR Form No. 1801 If the decedent had no legal residence in the Philippines, filing goes to Revenue District Office No. 39 in South Quezon City. Most heirs visit the RDO first so a Revenue Officer can review the documents and verify the tax computation before they proceed to the bank for payment.
The deadline is one year from the date of death. There is no automatic extension. Heirs who need more time can apply to the BIR Commissioner’s office before the deadline expires, though approval is discretionary and any extension is typically short.
Paying the Tax
Payment happens at the same Authorized Agent Bank where the return is filed. In municipalities without an authorized bank, the Revenue Collection Officer accepts payment and issues a manual receipt. Either way, you receive a machine-validated return or official receipt. Keep it safe. The eCAR cannot be issued without it.
Installment Payments for Illiquid Estates
If the estate is asset-rich but cash-poor, you can apply to pay in installments over a maximum of two years from the statutory payment deadline. Approval from the RDO must come before the first installment is due, and each installment requires a separate approved payment form.4Bureau of Internal Revenue. Estate Tax Amnesty Installments spread the payment but do not waive penalties if the original deadline has already passed.
Getting Cash Out of the Decedent’s Bank Account
Banks freeze a depositor’s account on learning of the death, which often leaves heirs short on cash to pay the tax itself. Within one year of death, heirs can still withdraw from the account, but the bank withholds 6% of the amount withdrawn as a final tax.5Bureau of Internal Revenue. Revenue Regulations No. 12-2018 To use this route, the estate must already have its own TIN, and the heir has to present the stamped Form 1904 to the bank.
That 6% is a final tax and cannot be credited against the estate tax you eventually compute on Form 1801. If you instead complete the full settlement and present an eCAR before withdrawing, the bank releases the funds without any withholding. For estates with sizable deposits, settling first is the cheaper path.
Getting the eCAR to Complete the Transfers
After paying, apply at the same RDO for the electronic Certificate Authorizing Registration. The eCAR is the BIR’s clearance confirming the estate tax is paid. Without it, the Register of Deeds will not transfer real property titles, the LTO will not transfer vehicle registration, and banks will not release remaining deposits.
Bring the validated return, proof of payment, and the full set of supporting documents. A Revenue Officer verifies everything and processes the application. Official processing time is 5 to 15 working days from the submission of complete documents; complex estates or incomplete paperwork extend the timeline. The BIR issues a separate eCAR for each property or asset transferred, so an estate with three parcels of land generates three eCARs.
What Happens if You File Late
Missing the one-year deadline triggers two penalties that stack. A 25% surcharge is added to the unpaid tax.6Bureau of Internal Revenue. Penalties for Late Filing of Tax Returns Interest then runs at 12% per year on the outstanding balance from the original deadline until the tax is paid in full.7Bureau of Internal Revenue. Revenue Regulations No. 21-2018 The 12% figure is set by the TRAIN Law at double the Bangko Sentral ng Pilipinas legal interest rate, currently 6%.
The penalties compound quickly. Estates left unsettled for years can end up owing more in surcharges and interest than the original tax. This is the single most avoidable mistake in Philippine estate settlement.
If the Decedent Was a Non-Resident Alien
The rules narrow when the decedent was neither a Philippine citizen nor a resident. The gross estate includes only property situated in the Philippines, such as Philippine real property, shares in domestic corporations, and deposits in Philippine banks. The standard deduction is only ₱500,000, and the family home deduction is not available.5Bureau of Internal Revenue. Revenue Regulations No. 12-2018 Claims against the estate, unpaid mortgages, casualty losses, and transfers for public use remain deductible, but only to the extent they relate to Philippine-situated property. Any omission of assets from the return disqualifies the deductions entirely.
The Pre-2018 Amnesty Has Closed
Republic Act No. 11213 offered a one-time estate tax amnesty for anyone who died on or before December 31, 2017, letting qualifying estates pay 6% of the net estate with no surcharges, interest, or penalties.8The Lawphil Project. Republic Act No. 11213 After several legislative extensions, the amnesty window closed on June 14, 2025. Estates of pre-2018 decedents that missed it now file under the standard rules, with the full 25% surcharge and 12% annual interest accumulated from the original due date. House Bill 6614 would extend the amnesty through December 31, 2028, but it has not been enacted. For any long-delinquent estate, the difference between amnesty treatment and regular late filing is substantial, so the status of that bill is worth watching.