BIR Ruling No. 32-2020

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE

BUREAU OF INTERNAL REVENUE

Quezon City

CT-032-2020

JAN 2 4 2020

Purok Gumamela,MahayahayIligan City NORA G.NOVELA

Madame:

This has reference to your letter addressed to President Rodrigo Roa Duterte, through the Presidential Complaint Center.

You represent that you are the second wife of PSINSP Dominador O. Novela who died on May 27, 2016 and have legal claim over the decedent's pension and benefits as a retired PNP officer. In addition, you are asking the Bureau of Internal Revenue (BIR) to help process and pay the decedent's estate

tax.

In reply, please be informed that Sec. 85 of the National Internal Revenue Code (NIRC) of 1997.

as amended, states that:

"Sec. 85. Gross Estate. -- The value of the gross estate of the 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: Provided, however, That in the case of nonresident decedent who

at the time of his death was not a citizen of the Philippines, only that part of the entire gross

estate which is situated in the Philippines shall be included in his taxable estate.

It must be emphasized that tax is a burden that everyone must bear, in order to live in a civilized

society where the state has the financial ability to defray the necessary expenses of the government. The

term "Estate Tax" has been defined as the tax levied on the transmission of the properties of the decedent

at the time of death and is based on the value of the net estate regardless of the number of heirs or their

relationship to the decedent.

The BIR shall not determine whether you are the legal heir of the decedent, as the same is outside

our jurisdiction. However, the settlement of the estate of the late PSINSP Dominador O. Novela must be

addressed to the Revenue District Office (RDO) of the BIR where the decedent was domiciled at the time of his death and the payment of the tax due thereon, if any, must be done in said RDO accordingly.

For your information and guidance.

Very truly yours,

Meeaya

CAESAR R. DULAY

Commissioner of Internal Revenue

Copy Furnished: Asec. Jaime Llaguno Mabilin O 032343

Office of the President, Malacafiang, Manila Presidential Complaint Center

PCC Code No. SL-ASN-07-23-2018-145

K1-FR-18-1785 KI-JESS