Tax Imposed on the Savings Deposited with an English Bank

February 24, 1988 BIR RULING NO. 058-88 78 000-00 058-88 S i r : This refers to your letter dated November 6, 1987 requesting, in effect, a ruling that after your death, your savings which are deposited with an English Bank are exempt from the Philippine estate tax. It is represented that you are the Honorary Consul of the Republic of SeyChelles; that your three (3) minor children are nationals of the Federal Republic of Germany; that you and your children are resident aliens in the Philippines; that your Filipina wife owns a house and lot in Baguio City with an adjusted assessed value of P74,060.00 as of November 19, 1984; that except for a motor car, personal belongings and pensions you are receiving from the German Government, part of which will be paid to your Filipina wife upon your death, you have no other assets in the Philippines; and that the beneficiaries of your lifetime savings which is deposited with an English Bank, are your three children. In reply, please be informed that your request cannot be granted by this Office for lack of legal basis. Pursuant to Section 77 (formerly Section 87) of the Tax Code, as amended, every decedent, whether resident or non-resident of the Philippines, is subject to estate tax upon the transfer of his net estate based on the value of such net estate as determined in accordance with Sections 78 and 79 (formerly Sections 88 and 89) of the same Code. For Philippine estate tax purposes, the value of the gross estate of a resident decedent shall be determined by including the value at the time of his death of all property, real or personal, tangible or intangible, wherever situated. (See also Sec. 98, Tax Code) Such being the case, your aforesaid lifetime savings deposited with an English Bank shall be included in the determination of your net estate after your death subject to Philippine estate tax. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner