BIR Ruling No. 3-2018

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Sec. 85 of the Tax Code, as amended

BIR Ruling No. 23-12

003202

110201

GRACE PATRICIA G. SANDOVAL 20 Gregoria de Jesus St., Caloocan City

Madam:

you to withdraw your share of deposits in the joint accounts without having to pay the estate tax of your deceased co-depositor. This refers to your letter dated July 12. 2016 requesting for a ruling allowing

Caloocan City: that at the time of his death, he maintains together with his daughter, a bank account with the Bank of Makati, Caloocan Branch, Savings Account Nos. It appears that George M. Sandoval died intestate on January 5, 2016 in and and Certificate of Deposit Nos.

and : and that the account name of all accounts are George M. Sandoval OR Grace Patricia G.Sandoval.

Code of 1997, 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 In reply thereto, please be informed that pursuant to Section 85 of the Tax

intangible, wherever situated.

Moreover, interest on a deposit account maintained by two persons is deemed

to be equally owned by them for income tax purposes. The same presumption may

likewise apply for estate tax purposes, thus, only half of the balance of the deposit

should be reported for estate tax purposes pertaining to the decedent. Accordingly. the

one-half portion of the balance of the said accounts shall not be included in the

computation of the gross estate of the decedent.

Based thereon. your request is hereby granted. This shall serve as authority for

the Bank of Makati, Caloocan Branch to release half of the balances in the joint

accounts between George M. Sandoval and Grace Patricia G. Sandoval. After the

shares of Grace Patricia G. Sandoval in the said bank accounts have been paid to her.

the accounts shall cease to be "or" accounts and shall be converted to individual

accounts in the name of George M. Sandoval. The aforementioned bank is further

required to submit reports to the Law Division, Bureau of Internal Revenue. National

Page 2 of 2 Grace Patricia G.Sandoval

Office Building. that they have effected these changes within 30 days after the withdrawal by Grace Patricia G. Sandoval of her share in said bank accounts.

However, if upon investigation, it will be disclosed that the facts are different. then this ruling shall be considered null and void. This ruling is being issued on the basis of the foregoing facts as represented.

Very truly yours.

ewanya

CAESAR R.DULAY

K-1-JRC Commissioner of Internal Revenue 012506