Mr. Eddie E. Santos

February 11, 2008 BIR RULING [DA-079-08] DA483-03 Mr. Eddie E. Santos 741 S. De Guzman Street Malibay, Pasay City S i r : This refers to your letter dated February 8, 2008 requesting for a ruling as to whether or not the Estate of the late Domingo L. Santos which consists merely of a bank account in the total amount of P56,260.83 is exempt from the payment of estate tax. It is represented that the late Domingo L. Santos died without a will on June 2, 2007 at Rancho Springs Medical Center, Murrieta, California; and that at the time of his death the only property left by him is a bank account with the Philippine National Bank (PNB), Pasay Branch with savings account No. 230-582882-6 in the amount of P56,230.83. In reply thereto, please be informed that Section 90 (A) of the Tax Code of 1997 provides "Sec. 90. Estate Tax Returns. (A) Requirements. In all cases of transfers subject to the tax imposed herein, or where, though exempt from tax, the gross value of the estate exceeds Two hundred thousand pesos (P200,000), or regardless of the gross value of the estate, where the said estate consists of registered or registrable property such as real property, motor vehicle, shares of stock or other similar property for which a clearance from the Bureau of Internal Revenue is required as a condition precedent for the transfer of ownership thereof in the name of the transferee, the executor, or the administrator, or a any of the legal heirs, as the case may be, shall file a return under oath in duplicate, setting forth: SCETHa (1) the value of the gross estate of the decedent at the time of his death, or in case of a non-resident, not a citizen of the Philippines, of that part of his gross estate situated in the Philippines; (2) the deductions allowed from gross estate in determining the estate as defined in Section 86; and (3) such part of such information as may at the time be ascertainable and such supplemental data as may be necessary to establish the correct taxes." DaHISE Considering that the gross estate of the late Domingo L. Santos consists merely of a bank account in the total amount of P56,260.83 which is even lower than the P200,000.00 tax-exempt portion of the net estate bracket as imposed under Section 84 of the same Code, the estate of the late Domingo L. Santos is indeed exempt from estate tax. However, the executor, administrator or any of the legal heirs of the late Domingo L. Santos shall be required to file the corresponding estate tax return within six (6) months from the decedent's death with the Revenue District Office (RDO) in which the decedent was domiciled at the time of his death or if there be no legal resident in the Philippines, with the RDO 39, Quezon City pursuant to Revenue Memorandum Order (RMO) No. 17-97, as amended. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service