Basic Taxation Law: Estate Tax
Estate Tax Preliminary Article 712 of the New Civil Code provides for the different modes of acquiring ownership, namely: OIL-DSTP occupation intellectual creation Law succession, whether testate or intestate tradition, as consequence of certain contracts, prescription. Of these modes of acquiring ownership, succession and donation are generally regarded as gratuitous transfers of property from one person to another which means there is no consideration involved in the transfer or acquisition of property . These transfers are, however, subject to corresponding transfer taxes . Transfer tax The tax on the gratuitous transfer of property is called transfer tax. Under the National Internal Revenue Code (NIRC or Tax Code), as amended, there are two (2) transfer taxes namely: Estate tax under Section 84 and Donor's tax under Section 98. In addition, there is another transfer tax under Section 135 of the Local Govern...