RR No. 5-2022 — Implements the Estate Tax Exemption under RA No. 11597 (An Act Providing for the Revised Charter of the Philippine Veterans Bank, Repealing for the Purpose Republic Act No. 3518, as Amended, Otherwise Known as "An Act Creating the Philippine Veterans Bank, and for Other Purposes") (Published in Manila Times on June 24, 2022)

BUREAU GFINTERNAL REVE

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City JUN 2 0 2n22 RECORDS MGT. DIVISIC

REVENUE REGULATIONS No. 5 - 2022 SUBJECT: 3518,"as Amended, Otherwise Known as 'An Act Creating the Philippine Philippine Veterans Bank, Repealing for the Purpose Republic Act No. Veterans Bank, and For Other Purposes j Implementing the Estate Tax Exemption Under Republic Act No. 11597 Otherwise Known as "An Act Providing for the Revised Charter of the

TO All Internal Revenue Officers/Employees and Others Concerned

Revenue Code (NIRC) of 1997, as amended, these Regulations are hereby promulgated to implement Section 5(b) of Republic Act No. 1 1597 which mandates the estate tax exemption on the transfer by a veteran of his/her share/s, common or preferred, with the Philippine Veterans Bank (Veterans Bank). SECTION 1. Scope. - Pursuant to Sections 244 and 245 of the National Internal

of succession or donation mortis causa. stock, common or preferred, owned by a veteran with the Philippine Veterans Bank (Veterans Bank) to his/her widow, orphan or compulsory heir, as determined by existing laws, by way SECTION 2. Coverage. - These Regulations shall cover ali transfers of the share/s

favor of the veteran's widow, orphan or compulsory heir as determined by existing laws. donation mortis causa, made by a veteran of his/her shares of stock, common or preferred. with the Veterans Bank shall not be subject to estate tax, provided that the same was made in SECTION 3. Estate Tax Exemption. - All transfers, by way of succession or

9396. The term also'includes the widow, orphan or a compulsory heir of a deceased veteran. include primarily any person or persons who served in the regularly constituted air, land, or during World War HI, and whose services with such units are duly recognized by the Republic as determined by existing laws. naval services or arms, or in such non-regularly organized military units in the Philippines of the Philippines or by the government of the United States of America, and those veterans referred to under Republic Act (RA) No. 6948, as amended by RA No. 7696 and RA No. For purposes of availing the estate tax exemption, the term "veteran or veterans" shal!

decedent is registered before any transfer of share/s is registered in the books of the Veteran's Bank. (TCC) must be secured with the Revenue District Office (RDO) where the estate of the An electronic Certificate Authorizing Registration (eCAR)/ Tax Clearance Certificate

hereby amended, modified or revoked accordingiy. days after publication in the Official Gazette or in a newspaper of general circulation, whichever comes first. SECTION 5. Effectivity Clause. -- These Regulations shall take effect fifteen (15) SECTION 4. Repealing Clause. - Any revenue issuances inconsistent herewith are

Recommending Approval: A&esaMw CARLOS G. DOMINGUF Secretary of Finance JUN 1 6 2822

Commissioner of Internal Revenue CAESAR R. DULAY 051769