Allowable Deduction for Non-Resident Alien Decedent (Estate Tax)

1.       Expenses, the deductible amount is pro-rata using the following formula:

With regard to a non-resident, not a citizen decedent, the ELITE allowable to him would only be a pro-rata share of his GE in the Philippines over his worldwide GE:

                                                   GE Philippines   x   ELITE world

                                                   GE World

       

2.       Vanishing deduction

3.       Transfer for public use

Not allowed as deductions are: -  medical expenses -  family home -  standard deduction, and -  amount received under R.A. 4917.

No deduction shall be allowed to non-resident alien decedent unless the executor, administrator, or any of the heirs would include in the return required to be filed all the property from within and outside the Philippines.

SUMMARY OF DEDUCTIONS

	Citizen or Resident Decedent	Non-resident Alien Decedent
1.  ELITE	Deductible	Deductible (pro-rated)
2. Transfers for public use	Deductible	Deductible
3.  Vanishing deduction	Deductible	Deductible
4.  Family home	Deductible	Nondeductible
5.  Standard deduction	Deductible	Nondeductible
6.  Medical expenses	Deductible	Nondeductible
7.  Amount received by heirs under RA 4917	Deductible	Nondeductible