[ Act No. 3031, March 09, 1922 ]
AN ACT TO AMEND CERTAIN SECTIONS OF THE ADMINISTRATIVE CODE RELATIVE TO THE TAXES ON INHERITANCES, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in
Legislature assembled and by the authority of the same:
Section 1. Section fifteen hundred and thirty-six of Act Numbered Twenty-seven hundred and eleven, as amended by Act Numbered Twenty-eight hundred and thirty-five, is hereby further amended to read as follows:
"Section 1536. Conditions and rate of taxation.-Every transmission by virtue of inheritance, devise, bequest, gift mortis causa or advance in anticipation of inheritance, devise, or bequest of real property located in the Philippine Islands and real rights in such property; of any franchise which must be exercised in the Philippine Islands; of any shares, obligations, or bonds issued by any corporation or sociedad anonima organized or constituted in the Philippine Islands in accordance with its laws; of any shares or rights in any partnership, business or industry established in the Philippine Islands or of any personal property located in the Philippine Islands shall be subject to the following tax:
(a) When the surviving spouse, a legitimate, recognized natural or adopted child or legitimate descendant of any of them is the beneficiary, there shall be collected upon the share which corresponds to each beneficiary in the inventoried property a tax according to following schedule:
"One per centum upon the first ten thousand pesos; two per centum upon the amount by which such share exceeds ten thousand pesos and does not exceed thirty thousand pesos; three per centum upon the amount by which such share exceeds thirty thousand pesos and does not exceed sixty thousand pesos; four per centum upon the amount by which such share exceeds sixty thousand pesos and does not exceed one hundred thousand pesos; five per centum upon the amount by which such share exceeds one hundred thousand pesos and does not exceed one hundred and fifty thousand pesos; six per centum upon the amount by which such share exceeds one hundred and fifty thousand pesos and does not exceed two hundred and fifty thousand pesos; seven per centum upon the amount by which such share exceeds two hundred and fifty thousand pesos and does not exceed four hundred thousand pesos; eight per centum upon the amount by which such share exceeds four hundred thousand pesos and does not exceed six hundred thousand pesos; nine per centum upon the amount by which such share exceeds six hundred thousand pesos and does not exceed one million pesos; ten per centum upon the amount by which such share exceeds one million pesos and does not exceed one million five hundred thousand pesos; eleven per centum upon the amount by which such share exceeds one million five hundred thousand pesos and does not exceed two million five hundred thousand pesos; twelve per centum upon the amount by which such share exceeds two million five hundred thousand pesos and does not exceed four million pesos; thirteen per centum upon the amount by which such share exceeds four million pesos and does not exceed six million pesos; fourteen per centum upon the amount by which such share exceeds six million pesos and does not exceed ten million pesos; and fifteen per centum upon the amount by which such share exceeds ten million pesos and does not exceed fifteen million pesos; and sixteen per centum upon the amount by which such share exceeds fifteen million pesos.
"(b) When either of the legitimate parents of the deceased, a ligitimate brother or a sister of the same, the father or mother who had recognized him as a natural child or any descendant not included in the next preceding paragraph, is the beneficiary there shall be collected the same tax fixed in the paragraph next preceding with an increase of one hundred per centum.
"(c) When other relatives not included in the two next preceding subsections are beneficiaries there shall be collected the tax fixed in subsection (a) with an increase of two hundred per centum.
"(d) When strangers are beneficiaries there shall be collected the tax fixed in subsection (a) with an increase of three hundred per centum, stranger being deemed, for the purposes of this tax, those relatives by consanguinity of the seventh or more remote degree in the collateral line, and all relatives by affinity with the exception of the spouse: Provided, That in cases of property which by the will of the testator should be divided among the poor, without the designation of any particular persons, or which should be disposed of for masses and pious works for the benefit of his soul there shall be collected the tax at the rate fixed in this paragraph upon the total amount of said property.
"In case the property is transmitted to the heirs subject to the usufructuary interest, use or habitation or annuity of a third person, the tax shall be based on the value of the inventoried property less that of the usufruct, use or habitation or annuity determined as hereinafter provided."
Section 2. Section fifteen hundred and forty-two of the same Act, as amended, is hereby further amended to read as follows:
"Section 1542. Determination of value of usufructs, annuities, and real property.-In order 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 American Tropical Experience Table, calculated at eight per centum annual interest. For the purpose of determining the value of real property, the assessed value as shown by the tax rolls shall be taken as the minimum.
"In order to determine the tax which should be paid by the beneficiary of a legacy of education referred to in article eight hundred and seventy-nine of the Civil Code, when the legacy consists of profits, interests or dividends derived from any property, the legatee should be considered as a usufructuary until he becomes of legal age.
"In case a legacy of usufruct is made in favor of a juridical person, the legatee shall pay seventy-five per centum of the tax and the remaining twenty-five per centum shall be paid by the owner of the naked title of the property."
Section 3. Section fifteen hundred and forty-four of the same Act, as amended, is hereby further amended to read. as follows:
"Section 1544. When tax to be paid.-The tax fixed in this article shall be paid:
"(a) In the second and third cases of the next preceding section, before entrance into possession of the property.ℒαwρhi৷
"(b) In other cases, within the six months subsequent to the death of the predecessor; but if judicial testamentary or intestate proceedings shall be instituted prior to the expiration of said period, the payment shall be made by the executor or administrator before delivering to each beneficiary his share.
"If the tax is not paid within the time herein before prescribed, interest at the rate of twelve per centum per annum shall be added as part of the tax; and to the tax and interest due and unpaid within ten days after the date of notice and demand thereof by the Collector, there shall be further added a surcharge of twenty-five per centum.
"A certified copy of all letters testamentary or of administration shall be furnished the Collector of Internal Revenue by the Clerk of Court within thirty days after their issuance."
Section 4. Section fifteen hundred and forty-seven of the same Act is hereby amended to read as follows:
"Section 1547. Duties of certain officers and debtors.-Registers of deeds shall not register in the registry of property any document transferring real property or real rights therein or any chattel mortgage, by way of gifts mortis causa, legacy or inheritance, unless the payment of the tax fixed in this article and actually due thereon shall be shown.
And they shall immediately notify the Collector of Internal Revenue or the corresponding provincial treasurer of the nonpayment of the tax discovered by them. Any lawyer, notary public, or any government officer, who by reason of his official duties intervenes in the preparation or acknowledgment of documents regarding partition or disposal of donations mortis causa, legacy or inheritance, shall have the duty of furnishing the Collector of Internal Revenue or the provincial treasurer of the province, where he may have his principal office, with copies of such document and any information whatsoever which may facilitate the collection of the aforementioned tax. Neither shall a debtor of a deceased pay his debts to the heirs, legatees, executors, or judicial administrators of his creditor, unless the payment of the tax fixed in this article shall be shown; but he may pay the executor or judicial administrator without said requirement if the credit is included in the inventory of the estate of the deceased."
Section 5. This Act shall take effect on its approval.
Approved, March 9, 1922.
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