MANAGEMENT

Detailed explanation-1: -The estate tax is then calculated by multiplying the net estate by 0.06. For example, if the gross estate is PHP 5 million and the deductions are PHP 1 million, the net estate is PHP 4 million. Multiplying the net estate of PHP 4 million by 0.06 yields PHP 240, 000, which is the cost of the estate tax.

Detailed explanation-2: -The estate tax, sometimes also called the “death tax, ” is a tax that’s levied on a deceased person’s assets. In 2023, the federal estate tax ranges from rates of 18% to 40% and generally only applies to assets over $12.92 million. In 2022, the exemption was $12.06 million.

Detailed explanation-3: -noun. (Accounting: Tax) The tax rate is the percentage of an income or an amount of money that has to be paid as tax. These officials prefer lower tax rates on capital gains.

Detailed explanation-4: -Gross estate includes essentially all substantially valuable property owned by the person at death, including real estate, cash, stocks, life insurance, jewelry, furniture, and owed debts. Any taxable gifts made by the individual after 1976 will be included in the taxable estate.