Dual Citizen Estate Tax

Dear Atty. Duran-Schulze,

I’m a dual Filipino citizen, do I file Estate Tax in the Philippines?


Dear Diego, 

It depends on the nationality of the decedent. If the decedent is a dual citizen then yes, being a Filipino citizen he is required to pay 6% estate tax based on the value of such net estate under Section 84 of the National Internal Revenue Code (NIRC) to read:

SEC. 84. Rate of Estate Tax. – There shall be levied, assessed, collected and paid upon the transfer of the net estate as determined in accordance with Sections 85 and 86 of every decedent, whether resident or nonresident of the Philippines, a tax at the rate of six percent (6%) based on the value of such net estate.

According to the National Tax Research Center, the NIRC applicable tax treaties governs taxation of dual citizens, and in determining estate tax liability of a dual citizen, the residence of the taxpayer is controlling. Therefore, a Filipino resident who is at the same time an resident citizen owning property located abroad may simultaneously be subject to estate tax imposed by the Philippine taxing authority and by the foreign government. 

However if the decedent falls under the one of the following categories such as citizen (whether a resident or not), resident alien, and or non-resident, he or she will be subject to the rules:

  1. For a citizen (resident or non-resident) and a resident alien (foreigner), their gross estate state will be based on their properties within and without Philippines, which are: 
    1. Real Property wherever situated
    2. Tangible personal property wherever situated
    3. Intangible personal property wherever situated
  2. For a non-resident alien, their gross estate will be based on their properties situated in the Philippines, they are:
    1. Real property situated in the Philippines
    2. Tangible personal property situated in the Philippines
    3. Intangible personal property with a situs in the Philippines, unless exempted on the basis of reciprocity between countries.

In your case, considering that you are still a Filipino citizen, upon your death, your heirs are required to file the Estate Tax return and pay the corresponding Estate Tax mentioned above. You may consider securing the services of a Tax lawyer so that you do not pay twice as regards to Estate Tax in two different countries, one being the Philippines. 

Need further information and assistance?  Talk to our Legal team at Duran & Duran-Schulze Law. Call us today at (+632) 8478 5826 or send an email to info@duranschulze.com for more information.

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