TITLE III — ESTATE AND DONOR’S TAXES
(D)
Miscellaneous Provisions. — No deduction shall be allowed in the case
of a nonresident not a citizen of the Philippines, unless the executor,
administrator, or anyone of the heirs, as the case may be, includes in the
return required to be filed under Section 90 the value at the time of his
death of that part of the gross estate of the nonresident not situated in the
Philippines.
(E)
Tax Credit for Estate Taxes Paid to a Foreign Country. —
(1) In General. — The tax imposed by this Title shall be credited with
the amounts of any estate tax imposed by the authority of a foreign
country.
(2) Limitations on Credit. — The amount of the credit taken under this
Section shall be subject to each of the following limitations:
(a) The amount of the credit in respect to the tax paid to any
country shall not exceed the same proportion of the tax against
which such credit is taken, which the decedent’s net estate
situated within such country taxable under this Title bears to his
entire net estate; and
(b) The total amount of the credit shall not exceed the same
proportion of the tax against which such credit is taken, which
the decedent’s net estate situated outside the Philippines taxable
under this Title bears to his entire net estate.
SEC. 87. Exemption of Certain Acquisitions and Transmissions. — The
following shall not be taxed:
(A)
The merger of usufruct in the owner of the naked title;
(B)
The transmission or delivery of the inheritance or legacy by the fiduciary
heir or legatee to the fideicommissary;
(C)
The transmission from the first heir, legatee or donee in favor of another
beneficiary, in accordance with the desire of the predecessor; and
(D)
All bequests, devises, legacies or transfers to social welfare, cultural and
charitable institutions, no part of the net income of which inures to the
benefit of any individual: Provided, however, That not more than thirty
percent (30%) of the said bequests, devises, legacies or transfers shall be
used by such institutions for administration purposes.
SEC. 88. Determination of the Value of the Estate. —
(A)
Usufruct. — To determine the value of the right of usufruct, use or
habitation, as well as that of annuity, there shall be taken into account
the probable life of the beneficiary in accordance with the latest Basic
National Internal Revenue Code of 1997 (as amended by the TRAIN Law, RAs 11256, 11346 and 11467)
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