By Jun Ramirez
The Bureau of Internal Revenue (BIR) has issued a circular clarifying the requirements on the withdrawal of bank deposits of a deceased without the need of a clearance or the electronic certificate authorizing registration (eCAR).
Previously, the BIR did not allow such withdrawal without eCAR, regardless of the amount involved.
The Tax Reform for Acceleration and Inclusion (TRAIN) Law, however, waived such requirement on certain conditions.
In signing Revenue Memorandum Order 62-2018, BIR Commissioner Caesar R. Dulay stated that the legal heir or administrator of the decedent maybe allowed to withdraw the decedent’s bank deposits within one year from death provided the bank subject to six percent final withholding tax the amount withdrawn.
For joint account, the final withholding tax shall be based on the share of the decedent in the joint bank deposit.
Prior to withdrawal, the bank shall require the administrator or any of the legal heir to present the Tax Identification Number (TIN) of the estate of the deceased together with the BIR Form 1904 of the estate duly stamped by the concerned revenue district office (RDO).
The bank shall issue the corresponding BIR Form 2306 certifying the withholding of six percent final tax.
The BIR chief said all withdrawal slips shall include a sworn statement by the joint depositor that he is still living at the time of withdrawal.
Deposits already declared for estate tax purposes are no longer subject to the six percent final withholding tax.