MANILA, Philippines - Senate President Juan Ponce Enrile wants to exempt from the estate tax family homes whose fair market value does not exceed P10 million.
“The prevailing provisions of Republic Act 8424, as amended, allow for the deduction from the gross estate an amount equivalent to the current fair market value of the decedent’s family home up to P1,000,000,” he said.
Enrile has filed a bill seeking to amend Section 86 of Republic Act 8424, the Tax Reform Act of 2007.
“Despite the deduction, the increasing value of the family home nowadays and its inclusion in the computation of the estate tax contribute significantly to the amount to be paid by the surviving spouse.”
Currently, the value of a family home exempted from estate tax is pegged at P1 million.
Enrile said the bill aims to allow heirs to spend the amount saved from the payment of estate tax on basic necessities and priority needs.