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In the event the decedent has no legal residence in the Philippines, the Estate Tax Return must be filed with the nearest Philippine Embassy. Also, it must be stressed that the said return must be signed by a certified public accountant, duly accredited by the Philippine Bureau of Internal Revenue. In this connection, nonpayment of the estate tax will put to a halt any registration of the document of transfer with the proper Registry of Deeds and, accordingly, no new title in the heirs’ names will ensue. So the correct tax must be paid first, and paid on time to prevent any penalties and interest.
Estate tax is not a tax on property but one imposed on the privilege of transmitting property upon the death of the owner.
Once the tax has been paid, the Philippine Bureau of Internal Revenue will issue a Certificate Authorizing Registration which should be submitted to the proper Registry of Deeds. Next, upon payment of the registration of fees and surrender of the title still in the decedent's name, a new title will be issued to each heir in accordance with their partition of the estate. However, every land title will carry an inscription that pertains to the possible liability of heirs toward other heirs who were unlawfully deprived of participation in the adjudication of the estate. This entry in the land title is known as “Liabilities of Heirs” pursuant to Section 4, Rule 74 of the Rules of Court of the Philippines which will remain recorded in the land title for two years, the purpose of which is to notify prospective buyers about such fact.
For questions or inquiries, you Contact Jeremy O. Panganiban via email atatty_jeremy_o_paganiban@yahoo.com. You can also reach him through Viber by dialing cellular phone no. +63917-8749678.
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