Article 41p. 41

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

years from the statutory date for its payment without civil

penalty and interest. (as amended by RA No 10963)

(D) Liability for Payment. - The estate tax imposed by

Section 84 shall be paid by the executor or administrator

before delivery to any beneficiary of his distributive share

of the estate. Such beneficiary shall to the extent of his

distributive share of the estate, be subsidiarily liable for

the payment of such portion of the estate tax as his

distributive share bears to the value of the total net

estate.

For the purpose of this Chapter, the term ' executor ' or

' administrator ' means the executor or administrator of

the decedent, or if there is no executor or administrator

appointed, qualified, and acting within the Philippines,

then any person in actual or constructive possession of

any property of the decedent.

SEC. 92. Discharge of Executor or Administrator from

Personal Liability. - If the executor or administrator

makes a written application to the Commissioner for

determination of the amount of the estate tax and

discharge

from

personal

liability

therefore,

the

Commissioner (as soon as possible, and in any event

within one (1) year after the making of such application, or

if the application is made before the return is filed, then

within one (1) year after the return is filed, but not after

the

expiration

of

the

period

prescribed

for

the

assessment of the tax in Section 203 shall not notify the

executor or administrator of the amount of the tax. The

executor or administrator, upon payment of the amount

of which he is notified, shall be discharged from personal

liability for any deficiency in the tax thereafter found to be

due and shall be entitled to a receipt or writing showing

such discharge.

SEC. 93. Definition of Deficiency. - As used in this

Chapter, the term ' deficiency ' means:

(a) The amount by which the tax imposed by this

Chapter exceeds the amount shown as the tax by

the executor, administrator or any of the heirs upon

his return; but the amounts so shown on the return

shall first be increased by the amounts previously

assessed (or collected without assessment) as a

deficiency and decreased by the amount previously

abated, refunded or otherwise repaid in respect of

such tax; or

(b) If no amount is shown as the tax by the executor,

administrator or any of the heirs upon his return, or

if no return is made by the executor, administrator,

or any heir, then the amount by which the tax

exceeds

the

amounts

previously

assessed

(or

collected without assessment) as a deficiency; but

such

amounts

previously

assessed

or

collected

without assessment shall first be decreased by the

amounts previously abated, refunded or otherwise

repaid in respect of such tax.

SEC.

94. Payment before Delivery by Executor or

Administrator. - No judge shall authorize the executor or

judicial administrator to deliver a distributive share to any

party interested in the estate unless a certification from

the Commissioner that the estate tax has been paid is

shown.

SEC. 95. Duties of Certain Officers and Debtors. -

Registers of Deeds shall not register in the Registry of

Property any document transferring real property or real

rights therein or any chattel mortgage, by way of gifts

inter vivos or mortis causa, legacy or inheritance, unless a

certification from the Commissioner that the tax fixed in

this Title and actually due thereon had been paid is show,

and they shall immediately notify the Commissioner,

Regional Director, Revenue District Officer, or Revenue

Collection Officer or Treasurer of the city or municipality

where their offices are located, of the nonpayment of the

tax discovered by them. Any lawyer, notary public, or any

government officer who, by reason of his official duties,

intervenes in the preparation or acknowledgment of

documents regarding partition or disposal of donation

inter vivos or mortis causa, legacy or inheritance, shall

have the duty of furnishing the Commissioner, Regional

Director, Revenue District Officer or Revenue Collection

Officer of the place where he may have his principal

office,

with

copies

of

such

documents

and

any

information

whatsoever

which

may

facilitate

the

collection of the aforementioned tax. Neither shall a

debtor of the deceased pay his debts to the heirs, legatee,

executor or administrator of his creditor, unless the

certification of the Commissioner that the tax fixed in this

Chapter had been paid is shown; but he may pay the

executor

or

judicial

administrator

without

said

certification if the credit is included in the inventory of

the estate of the deceased.

SEC.

96.

Restitution

of

Tax

Upon

Satisfaction

of

Outstanding Obligations. - If after the payment of the

estate tax, new obligations of the decedent shall appear,

and the persons interested shall have satisfied them by

order of the court, they shall have a right to the restitution

of the proportional part of the tax paid.

SEC. 97. Payment of Tax Antecedent to the Transfer of

Shares, Bonds or Rights. - There shall not be transferred

to any new owner in the books of any corporation,

sociedad

anonima, partnership, business, or industry

organized or established in the Philippines any share,

obligation, bond or right by way of gift inter vivos or

mortis causa, legacy or inheritance, unless a certification

from the Commissioner that the taxes fixed in this Title

and due thereon have been paid is shown.

If a bank has knowledge of the death of a person, who

maintained a bank deposit account alone, or jointly with

another, it shall allow any withdrawal from the said

deposit account, subject to a final withholding tax of six

percent (6%). For this purpose, all withdrawal slips shall

contain a statement to the effect that all of the joint

depositors are still living at the time of withdrawal by any

one of the joint depositors and such statement shall be

under oath by the said depositors. (as amended by RA

No 10963)

CHAPTER II DONOR'S TAX

SEC. 98. Imposition of Tax. -

(A) There shall be levied, assessed, collected and paid

upon the transfer by any person, resident or nonresident,

of the property by gift, a tax, computed as provided in

Section 99.

(B) The tax shall apply whether the transfer is in trust or

otherwise, whether the gift is direct or indirect, and

whether the property is real or personal, tangible or

intangible.

SEC. 99. Rates of Tax Payable by Donor. -

(A) In General. — The tax for each calendar year shall be

six percent (6%) computed on the basis of the total gifts in

excess of Two hundred fifty thousand pesos (P250,000)

exempt gift made during the calendar year.

(B) Any contribution in cash or in kind to any candidate,

political

party

or

coalition

of

parties

for

campaign

purposes shall be governed by the Election Code, as

amended.

(as amended by RA No 10963)

SEC. 100. Transfer for Less Than Adequate and Full

Consideration. - Where property, other than real property

referred to in Section 24(D), is transferred for less than an

adequate and full consideration in money or money's

worth, then the amount by which the fair market value of

the property exceeded the value of the consideration

shall, for the purpose of the tax imposed by this Chapter,

be deemed a gift, and shall be included in computing the

amount of gifts made during the calendar year: Provided,

however, That a sale, exchange, or other transfer of

property made in the ordinary course of business (a

transaction which is a bona fide, at arm's length, and free

from any donative intent), will be considered as made for

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