TITLE III — ESTATE AND DONOR’S TAXES CHAPTER I.  ESTATE TAX SEC. 84.  Rates 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 a rate of six percent (6%)38 based on the value of such net estate. SEC. 85.  Gross Estate. — The value of the gross estate of the decedent shall be determined by including the value at the time of his death of all property, real or personal, tangible or intangible, wherever situated: Provided, however, That in the case of a nonresident decedent who at the time of his death was not a citizen of the Philippines, only that part of the entire gross estate which is situated in the Philippines shall be included in his taxable estate. (A) Decedent’s Interest. — To the extent of the interest therein of the decedent at the time of his death; (B) Transfer in Contemplation of Death. — To the extent of any interest therein of which the decedent has at any time made a transfer, by trust or otherwise, in contemplation of or intended to take effect in possession or enjoyment at or after death, or of which he has at any time made a transfer, by trust or otherwise, under which he has retained for his life or for any period which does not in fact end before his death (1) the possession or enjoyment of, or the right to the income from the property, or (2) the right, either alone or in conjunction with any person, to designate the person who shall possess or enjoy the property or the income therefrom; except in case of a bona fide sale for an adequate and full consideration in money or money’s worth. (C) Revocable Transfer. — (1) To the extent of any interest therein, of which the decedent has at any time made a transfer (except in case of bona fide sale for an adequate and full consideration in money or money’s worth) by trust or otherwise, where the enjoyment thereof was subject at the date of his death to any change through the exercise of a power (in whatever capacity exercisable) by the decedent alone or by the decedent in conjunction with any other person (without regard to when or from 38 100 As amended by Section 22 of the TRAIN Law. Isla Lipana & Co., the Philippine member firm of the PwC network