Living In The Philippines Forum

Itís Your Money => Securing Your Family's Financial Future => Topic started by: nerd4444 on February 26, 2018, 01:27:13 PM

Title: Estate planing-wealth distribution
Post by: nerd4444 on February 26, 2018, 01:27:13 PM
I can not find the post regarding BIR said that a bank account balance of 200000ph was safe from being frozed. My concern with a joint or individual bank account the balance will be frozen this freezing access to the funds-this of course in the event of an account holders death? So the question is, is there a BIR ruling that allows no penalty withdrawal of deposits in the event of account holdrs death? Or does anyone know how to protect your bank account deposits from being frozen in the event of account holders death?
Title: Re: Estate planing-wealth distribution
Post by: Lee2 on February 26, 2018, 01:41:07 PM
I believe the post you are referring to is in the topic below yours, second post and fifth post.
http://www.livinginthephilippines.com/forum/index.php?topic=51337.0 (http://www.livinginthephilippines.com/forum/index.php?topic=51337.0)
Title: Re: Estate planing-wealth distribution
Post by: nerd4444 on March 01, 2018, 01:57:53 AM
wow thanks you found the site I was looking for.
Title: Re: Estate planing-wealth distribution
Post by: Lee2 on March 01, 2018, 05:05:25 AM
I guess this is the important part everyone needs to know about.
https://www.bir.gov.ph/index.php/tax-information/estate-tax.html (https://www.bir.gov.ph/index.php/tax-information/estate-tax.html)
Title: Re: Estate planing-wealth distribution
Post by: suzukig1 on March 01, 2018, 12:33:24 PM
I guess this is the important part everyone needs to know about.
https://www.bir.gov.ph/index.php/tax-information/estate-tax.html (https://www.bir.gov.ph/index.php/tax-information/estate-tax.html)

That table on the BIR website is not up to date.  The new tax bill changed the estate tax rules (for the better).  The maximum estate tax is now 6% instead of 20%.  The deductions are now much larger.

A key point on the issue raised in the original post re: withdrawal after death: the rules were changed to allow withdrawals from the deceased persons account as long as you pay the 6% estate tax on the amount withdrawn.  I have no information on whether or not you can recover that 6% paid if it turns out that you do not owe that much in estate taxes.

(I will look for a link to this info later and post.)
Title: Re: Estate planing-wealth distribution
Post by: suzukig1 on March 01, 2018, 02:15:50 PM

That table on the BIR website is not up to date....

(I will look for a link to this info later and post.)


https://businessmirror.com.ph/estate-tax-changes-under-train-law/

Estate-tax changes under TRAIN law

January 14, 2018
Title: Re: Estate planing-wealth distribution
Post by: Lee2 on March 01, 2018, 02:57:00 PM
https://businessmirror.com.ph/estate-tax-changes-under-train-law/

Estate-tax changes under TRAIN law

January 14, 2018
Thank you for posting that.
Title: Re: Estate planing-wealth distribution
Post by: iamjames on March 01, 2018, 06:14:56 PM
Just a point in passing: I was informed by an expert that there is no such thing as a tax refund or rebate in the Philippines. That is why people are reluctant to part with any funds to the BIR. You can never get anything back no matter what the circumstances.
Title: Re: Estate planing-wealth distribution
Post by: BudM on March 01, 2018, 07:06:33 PM
Just a point in passing: I was informed by an expert that there is no such thing as a tax refund or rebate in the Philippines. That is why people are reluctant to part with any funds to the BIR. You can never get anything back no matter what the circumstances.

James...The don't take excess tax paid away from people.  If an employee over withholds during a year, I am pretty sure, it is the employer who is responsible for refunding it to the employee by the end of the year and then the employer.  The employee gets their money back.  As far as self earners and individual filers, again, they just do not get their money taken away.  Unless they are hit with a penalty for not filing on time or under filing or whatever.  I am not sure if those people can actually get a refund or not.  I know, if they do, it takes time and they are better off and easier just getting the credit for next time.

I am no tax expert like the tax expert you have but if you ask your expert if a Philippine citizen stands to lose their money to the BIR if it is overpaid, then I imagine you would hear a different way then you are currently interpreting what they are saying.

I am not looking it all up for you but you can find out what you want to know on the BIR website.  I don't know why the term rebate is being tossed around in their either.
Title: Re: Estate planing-wealth distribution
Post by: bigrod on March 01, 2018, 07:59:46 PM
Just a point in passing: I was informed by an expert that there is no such thing as a tax refund or rebate in the Philippines. That is why people are reluctant to part with any funds to the BIR. You can never get anything back no matter what the circumstances.


Actually Iamjames I posted the following FYI  last month in the Estate Tax section:

The following seems so refute your claim of no tax refund...actually the employer refunds the over payment in your Jan pay check.

http://primer.com.ph/tips-guides/2016/12/29/expats-guide-to-tax-refund-in-the-philippines/ (http://primer.com.ph/tips-guides/2016/12/29/expats-guide-to-tax-refund-in-the-philippines/)

Chuck