How to File Estate Tax Return (Form 1801)
Estate tax is a tax imposed on the right of a deceased person (decedent) to transfer their property to their lawful heirs and beneficiaries at the time of death. Under the TRAIN Law (Republic Act No. 10963), the estate tax rate was simplified to a flat rate of 6% on the value of the net estate exceeding P5 million. This comprehensive guide explains how to compute, file, and pay estate tax in the Philippines, the documents you need, and what to expect throughout the process.
Estate Tax at a Glance
Tax Rate
6% flat rate on the value of net estate exceeding P5 million (under TRAIN Law, effective January 1, 2018).
Standard Deduction
P5,000,000 standard deduction from the gross estate, available to all estates regardless of the amount.
Filing Deadline
Within 1 year from the date of death of the decedent. Extendable for meritorious cases (up to 30 days for extrajudicial, 6 months for judicial).
Estate Tax Amnesty
Under RA 11956, an estate tax amnesty program is available for estates of decedents who died on or before June 14, 2023, with a reduced 6% rate on net undeclared estate.
When to File Estate Tax
Estate tax must be filed upon the death of a person who owned property, whether real or personal, tangible or intangible. The estate tax return must be filed and the tax paid within one (1) year from the date of death of the decedent.
Filing is Required When:
- The decedent owned real property (land, house, condo)
- The decedent had bank deposits or investments
- The decedent owned shares of stock or businesses
- The decedent had motor vehicles or other valuable personal property
- The decedent had life insurance proceeds payable to the estate
Extension of Deadline
- Extrajudicial settlement: Extension of up to 30 days from the statutory deadline upon meritorious request
- Judicial settlement: Extension of up to 6 months from the statutory deadline with court approval
- Request for extension must be filed before the original deadline expires
Estate Tax Computation
The estate tax is computed by determining the gross estate, subtracting the allowable deductions to arrive at the net taxable estate, and then applying the 6% flat tax rate. Below is the formula and the list of allowable deductions.
Estate Tax Formula
Gross Estate (all properties of the decedent at the time of death)
minus
Allowable Deductions (standard deduction, family home, claims, etc.)
equals
Net Taxable Estate
multiplied by
6% Tax Rate
equals
Estate Tax Due
Allowable Deductions from Gross Estate
| Deduction | Details |
|---|---|
| Standard Deduction | P5,000,000 -- automatically deducted from the gross estate without need for proof or substantiation. This is the single most significant deduction under the TRAIN Law. |
| Family Home | Up to P10,000,000 -- the current fair market value of the family home (the dwelling where the decedent and family resided), deductible up to a maximum of P10 million. |
| Claims Against the Estate | Debts of the decedent that were existing at the time of death, including outstanding loans, mortgages, and unpaid obligations that are substantiated and legally enforceable. |
| Claims Against Insolvent Persons | Amounts receivable by the decedent from insolvent debtors, included in the gross estate but uncollectible, and therefore deductible. |
| Unpaid Mortgages / Indebtedness | Unpaid mortgage on property included in the gross estate, or any indebtedness with respect to the property, if the full value of the property is included in the gross estate. |
| Transfers for Public Use | Property donated or bequeathed to the government or any political subdivision for exclusive public purpose. |
| Net Share of Surviving Spouse | If the decedent was married, the surviving spouse's share in the conjugal or community property (usually 50%) is excluded from the gross estate. |
Requirements for Filing Estate Tax
The following documents must be prepared and submitted when filing the estate tax return (BIR Form 1801) at the Revenue District Office (RDO) where the decedent was registered or where the decedent was domiciled at the time of death.
| Document | Details |
|---|---|
| BIR Form 1801 | The Estate Tax Return form, duly accomplished in triplicate. Available at the BIR website (bir.gov.ph) or at the RDO. |
| PSA Death Certificate | Certified true copy of the Death Certificate issued by the Philippine Statistics Authority (PSA). This establishes the date of death, which determines the filing deadline and the valuation date of the estate. |
| TIN of Estate / Administrator | The TIN of the decedent, or the TIN of the estate (if a separate TIN was issued for the estate), and the TIN of the administrator or executor. Apply for a TIN for the estate at the RDO if needed. |
| Certified True Copy of Land Titles (TCT/CCT) | Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) for all real properties owned by the decedent. Obtain certified true copies from the Register of Deeds. |
| Tax Declarations of Real Properties | Latest tax declarations for all real properties included in the estate. Obtain from the local Assessor's Office. These show the assessed and fair market values. |
| Bank Certificates / Statements | Certificates of deposit balance or bank statements showing the balance of all bank accounts of the decedent as of the date of death. |
| Certificate of Stocks / Shares | Certificate of shareholdings from the corporate secretary or stock transfer agent for any shares of stock owned by the decedent. Include the par value and book value as of the date of death. |
| Special Power of Attorney (SPA) | If the estate tax return is filed by an authorized representative or attorney-in-fact, a notarized Special Power of Attorney must be submitted. |
| Extrajudicial Settlement / Will / Court Order | A certified true copy of the Deed of Extrajudicial Settlement of Estate, the Last Will and Testament (if any), or Court Order in cases of judicial settlement. This document shows the distribution of estate among heirs. |
Step-by-Step: Filing Estate Tax Return
The following steps outline the complete process for filing the estate tax return (BIR Form 1801), from gathering documents to transferring properties to the heirs of the decedent.
Gather All Required Documents
Collect all the necessary documents listed above. Start by obtaining the PSA Death Certificate and then gather all documents that establish the assets of the decedent: land titles (TCT/CCT), tax declarations, bank certificates, stock certificates, vehicle registration, and any other proof of assets. Also gather proof of liabilities such as outstanding loans and mortgages.
Tip: Request bank certificates early. Banks may take 2 to 4 weeks to process a request for a certificate of deposit balance as of date of death. You will need to present the Death Certificate and proof that the requester is an heir or administrator.
Compute the Estate Tax
Determine the gross estate by listing all properties and assets of the decedent with their fair market values as of the date of death. For real property, use the higher of the BIR zonal value or the assessed value per the tax declaration. Subtract all allowable deductions (standard deduction of P5M, family home up to P10M, claims against the estate, etc.) to arrive at the net taxable estate. Apply the 6% flat rate.
Important: If the net taxable estate is zero or negative after deductions, you are still required to file the estate tax return, but there will be no tax due.
Fill Out BIR Form 1801
Download BIR Form 1801 (Estate Tax Return) from the BIR website at bir.gov.ph or obtain it from the Revenue District Office. Fill in all required information including: decedent's personal details, TIN, date of death, itemized list of assets and their values, itemized deductions, computation of net estate and tax due, and information about the heirs and administrator.
Prepare the form in triplicate. Make sure all computations are accurate and consistent with the supporting documents.
File at the RDO Where the Decedent Was Registered
Submit the accomplished BIR Form 1801 together with all supporting documents at the Revenue District Office (RDO) having jurisdiction over the place where the decedent was domiciled at the time of death. If the decedent had no fixed residence in the Philippines, file at RDO No. 39 (South Quezon City).
Note: For non-resident decedents (whether citizen or alien) with properties in the Philippines, the estate tax return is filed with the Office of the Commissioner of Internal Revenue through RDO No. 39.
Pay Estate Tax at an Authorized Agent Bank
After filing the return, pay the estate tax due at any Authorized Agent Bank (AAB) within the jurisdiction of the RDO. If there is no AAB in the area, payment may be made to the Revenue Collection Officer (RCO) at the RDO. The payment can be made in cash or via manager's check or cashier's check.
Installment payment: The estate tax may be paid in installments within 2 years from the statutory date for payment, if the estate is settled through the courts, or if the estate includes assets that are not easily convertible to cash. A request for installment must be approved by the BIR.
Get the CAR (Certificate Authorizing Registration)
After payment of the estate tax, apply for a Certificate Authorizing Registration (CAR) or BIR Clearance (eCAR) from the RDO. The CAR/eCAR is the document issued by the BIR certifying that the estate tax has been paid and authorizing the Register of Deeds to transfer titles to the heirs. Processing time for the eCAR typically ranges from 2 weeks to 3 months, depending on the complexity of the estate.
Tip: Follow up regularly with the RDO for the status of your eCAR. You may be asked to provide additional documents during the processing.
Transfer Properties to Heirs
With the eCAR in hand, proceed to the Register of Deeds to transfer the land titles (TCT/CCT) from the decedent's name to the names of the heirs. You will also need to pay the transfer tax at the local Treasurer's Office and update the tax declarations at the Assessor's Office. For bank accounts, present the eCAR and the extrajudicial settlement to the bank to release the funds to the heirs.
For shares of stock, submit the eCAR and settlement documents to the corporate secretary or stock transfer agent for the issuance of new stock certificates in the names of the heirs.
Estate Tax Amnesty Program (RA 11956)
Republic Act No. 11956 (signed into law in 2023) provides an estate tax amnesty for estates of decedents who died on or before June 14, 2023. The amnesty is designed to help Filipino families who have been unable to settle estate tax obligations due to the complexity and cost of the process.
Key Features of the Amnesty
- Covers all estates of decedents who died on or before June 14, 2023, regardless of whether a return was previously filed
- Amnesty tax rate of 6% based on the decedent's total net estate at the time of death
- Minimum amnesty tax of P5,000 per decedent
- All applicable penalties, surcharges, and interest are waived
- Filing period: within 2 years from the effectivity of the Implementing Rules and Regulations (IRR)
Who Can Avail
- Executor, administrator, or any of the legal heirs of the decedent
- Estates with or without previously filed estate tax returns
- Estates with pending cases or assessments related to estate tax (provided the case is withdrawn)
- Not available for estates involved in fraud or tax evasion cases already filed in court
Important: The estate tax amnesty has a limited filing window. Check with the BIR or visit bir.gov.ph for the latest updates on the amnesty deadline and implementing rules. Take advantage of this program to settle long-overdue estate tax obligations at a reduced cost.
Complete Example: The Cruz Family Files Estate Tax
Mr. Roberto Cruz passed away on March 15, 2025. He was survived by his wife, Mrs. Elena Cruz, and their three children. At the time of death, Mr. Cruz owned several properties and had bank deposits. Here is how the Cruz family computed and filed the estate tax.
Step 1: Determine Gross Estate
Step 2: Compute Allowable Deductions
Step 3: Compute Estate Tax Due
In this example, the total deductions exceed the gross estate, so the net taxable estate is zero and no estate tax is due. However, the Cruz family is still required to file BIR Form 1801 to obtain the eCAR needed to transfer the properties.
Alternative Scenario: If Gross Estate Were Higher
Suppose Mr. Cruz's gross estate was P30,000,000 instead:
Note: Even at P30M gross estate, the generous deductions (especially the surviving spouse's share) may still bring the net taxable estate to zero. The TRAIN Law's P5M standard deduction and other allowances significantly reduce estate tax liability for many Filipino families. Tax is typically due only when the decedent's exclusive properties (not conjugal) exceed the deductions.
Frequently Asked Questions
What if the total estate is below P5 million?
If the gross estate is below P5 million, the standard deduction of P5 million will already reduce the net taxable estate to zero, meaning no estate tax is due. However, you are still required to file the estate tax return (BIR Form 1801) with the BIR. Filing is necessary to obtain the Certificate Authorizing Registration (eCAR), which is required to transfer properties to the heirs. Even with zero tax due, the filing process must be completed.
What is the penalty for late filing of estate tax?
Late filing of estate tax incurs the following penalties: a 25% surcharge on the estate tax due (or 50% in cases of fraud), plus 12% interest per annum (formerly 20%, reduced under the TRAIN Law) computed from the due date until full payment. There is also a compromise penalty that varies depending on the amount of tax due. These penalties can significantly increase the total amount owed, so it is important to file within the 1-year deadline.
Can I pay estate tax in installments?
Yes. Under the Tax Code, the estate tax may be paid in installments within a period not exceeding 2 years from the statutory date of payment when the estate is settled through the courts, or when the Commissioner of Internal Revenue finds that payment on the due date would impose undue hardship. To avail of installment payment, file a written request with the BIR stating the reasons and proposing a payment schedule. The request must be approved by the BIR Commissioner.
What happens to bank accounts of the decedent?
Bank accounts of the decedent are frozen upon notification of death. The bank will not allow withdrawals until the estate tax is settled and the BIR issues a Certificate Authorizing Registration (eCAR) or a BIR clearance. However, under the TRAIN Law, banks may allow a withdrawal of up to P20,000 from the decedent's deposits without requiring BIR clearance, provided it is used for the decedent's funeral expenses. The remaining balance will only be released upon presentation of the eCAR and the Deed of Extrajudicial Settlement or Court Order.
Who is eligible for the Estate Tax Amnesty?
Under RA 11956, the estate tax amnesty applies to the estate of any decedent who died on or before June 14, 2023, regardless of whether an estate tax return was previously filed or not. The amnesty can be availed by the executor, administrator, or any of the legal heirs. It covers all unpaid estate taxes, including penalties and interest. However, estates involved in fraud or tax evasion cases already filed in court are excluded. The amnesty tax rate is 6% of the net estate, with a minimum tax of P5,000 per decedent.
Can a property be sold without paying estate tax?
No. A property that is part of a decedent's estate cannot be legally transferred or sold without first settling the estate tax and obtaining the Certificate Authorizing Registration (eCAR) from the BIR. The Register of Deeds will not process any transfer of title without the eCAR. This means the heirs must file the estate tax return and pay any tax due before they can sell, donate, or otherwise dispose of the inherited property.
Do I need a lawyer to file estate tax?
A lawyer is not strictly required to file the estate tax return itself, but is highly recommended, especially for estates involving multiple properties, large amounts, or disputes among heirs. A lawyer is essential for preparing the Deed of Extrajudicial Settlement (which must be notarized and published in a newspaper), and for judicial settlement of estates. For simple estates with cooperative heirs, the administrator or heirs can file BIR Form 1801 directly at the RDO.
What is the difference between estate tax and donor's tax?
Estate tax is imposed on the transfer of property from a deceased person to their heirs upon death. Donor's tax is imposed on the transfer of property by a living person (donor) to another person (donee) through a donation or gift. Both taxes use a 6% flat rate under the TRAIN Law. Estate tax is filed using BIR Form 1801, while donor's tax is filed using BIR Form 1800. Estate tax has a P5 million standard deduction; donor's tax has a P250,000 annual exemption.
Important Reminders
- File within 1 year from the date of death: The estate tax return must be filed and the tax paid within one year from the decedent's death. Late filing results in surcharges, interest, and compromise penalties that can significantly increase the total obligation.
- Use the higher fair market value for real property: For estate tax purposes, real property is valued at the higher of the BIR zonal value or the fair market value per the tax declaration from the local Assessor's Office as of the date of death.
- The eCAR is essential for property transfer: Without the BIR-issued Certificate Authorizing Registration (eCAR), no property can be transferred to the heirs. The Register of Deeds, banks, and stock transfer agents all require the eCAR before processing any transfer.
- Consider the Estate Tax Amnesty: If the decedent died on or before June 14, 2023, take advantage of the estate tax amnesty under RA 11956 to avoid paying penalties and interest on overdue estate tax.
- All heirs must sign the extrajudicial settlement: For extrajudicial settlement of estate, all legal heirs must sign the Deed of Extrajudicial Settlement. If even one heir refuses, the estate may need to go through judicial (court) settlement.
- Publication of extrajudicial settlement is required: The Deed of Extrajudicial Settlement must be published in a newspaper of general circulation once a week for 3 consecutive weeks, as required by Rule 74 of the Rules of Court.
- Keep all receipts and documents: Retain copies of the filed estate tax return, payment confirmation, eCAR, Deed of Extrajudicial Settlement, and all supporting documents. These may be needed for future transactions involving the inherited properties.
- Consult a tax professional for complex estates: For estates involving businesses, foreign properties, disputes among heirs, or large amounts, it is advisable to engage a CPA and/or lawyer to ensure compliance and optimize deductions.
Need Help?
Contact BIR
- BIR Hotline: (02) 8538-3200
- BIR Contact Center: 8538-3200 local 6000
- Email: contact_us@bir.gov.ph
- Website: www.bir.gov.ph
- Office Hours: Monday to Friday, 8:00 AM to 5:00 PM
Disclaimer
This guide is provided for general informational purposes only. The requirements, steps, fees, and procedures mentioned here may vary depending on the BIR you visit. We recommend visiting your nearest BIR first to confirm the specific requirements and process before preparing your documents.