RMC No. 62-2018 — Clarifies the requirements on the withdrawal from the bank deposit account/s of a deceased depositor/joint depositor without the required Electronic Certifcate Authorizing Registration Digest | Full Text

REPUBLIC ()F'f HE PHiLIPPINES [jiffi BUREAU OF INTERNAL REVENUE D EPA I{TT,TI]N'| O F FINAN'JE ilt) BUREAU OF INTERNAL REVEN{.IE] IitLz ,ffi,y )yt Quezon City RECOKDS I*GT. DIVISIO N v .Tune 28. 2018 REVENUE MEMORANDUM cIRCULAR No. 0 L- 2Ol8 SUBJECT Clarifying the Requirements on the Withdrawal from the Bank TO Deposit Account/s of a Deceased Depositor/Joint Depositor Without the Required Electronic Certificate Authorizing Registration All Internal Revenue Officers and Others Concerned Pursuant to Section 27 of Republic Act (R. A.) No. 10963, otherwise known as the "Tax Reform Acceleration and Inclusion (TRAIN) Law", further amending Section 97 of the National Internal Ret,enue Code QrllRC) of 1997 . as amended, and as provided under Revenue Regulations (RR) No. 12-2018 dated January 25,2018. this Circular is hereby issued to clarify the requirements on the withdrawal from the bank deposit account/s of a deceased depositoriioint depositor without the required electronic Cerlificate Authorizing Registration (eCAR). L The executor, administrator. or any of the legal heiris of a decedent who, prior to death, maintained bank deposit/s may be allowed withdrawal from the said bank deposit account/s within one (1) year fiom the date of death of the depositor/ioint depositor but the amount withdrawr-r shall be subject to six perceri- (6%) fina1 withholding tax: 2. For .]oint accttr-tnt. the final u'ithholcling tar shall be basecl on the share ol tire cicccdeni in thc -joint banli cleposil,s: 3. Prior to such u,ithdrawal. the Bank shall require the executor. adrninistrator. or any of the legal heir/s r.l,ithdrar.r,ing tiom the deposit account to present a copy of the Tax Identiflcation Number (TIN) of the estate of the decedent and BIR Form No. i904 of the estale. dul.v stamped received by the concerned Revenue District Olllce (RDO) of the Bureau of Intemal Revenue in accordance with the existing guidelines on the issuance of TIN: 4. The bank shall issue the corresponding BIR Form No. 2306 cenifi,ing the withhoiding of six percent (6o/o) {tna1tax. file the prescribed quafleriv return on the final tax u'ithheld and remit the same on or belore the last dal of tl.ie monti.r fcllou.ing the close of the quarter during r.,hrch ihe r,vithholding \\'as madc: 5 A1l u'ithclrau,al slips to be used lor purposes of implementing Section l7 of the TRAIN Lawjshall contain the lollor,,'ir.is terms and conditior.rs:

(a) A swol'n statement by any one of the surviving joint depositor/s to the effect that all the other joint depositor/s is/are still living at the time of withdrawal: and (b) A statement that the withdrawal is subject to six percent (6yo) finat withholding tax. Bank depositls already declared for estate tax purposes and is/are indicated in the eCAR issued by the concerned RDO to the executor, administrator, or any of the legal heiris of the decedent. presented to the bank for withdrawal of the said bank depositis. shall no longer be subject to the six percent (6oh) final withholding tax. This Circular shall not be construed as preventing the bank from requiring pertinent docutnents in accordance with its existing policy or in pursuance of a requirement under applicabie laws, rules and regulations, for the purpose of, among others, ascertaining the identity and the right to claim of the heir/s or its authorized representative before allowing any withdrawal from the bank deposit account/s. All intemal revenue officials, empioyees and others concerned are hereby enjoined to give this circular as wide a pubiicity as possible. -t**rkary CAESAR R. DULAY Commissioner ol Intetr,naIlu*.lIo.ir:I REEVE TrIN :/;. i: I L. l\l \/4; li )1_ul VISsro :./: