It is the tax on transferring a deceased person's estate to their heirs. The BIR computes it before the assets can be transferred to the heirs' names.

Which BIR office handles estate tax?

The Revenue District Office with jurisdiction over where the deceased lived at the time of death. If there was no Philippine residence, a designated RDO handles it.

Can heirs transfer property before estate tax is paid?

Generally no. The estate tax must be settled and the BIR must issue the clearing document before property titles can be transferred to the heirs.

Estate Tax in the Philippines: The ONETT Process Explained

Estate & Property1 min readUpdated May 25, 2026

When a person passes away, their estate may owe estate tax, and the BIR must process this before the heirs can transfer the property. Here is a plain-language overview.

What estate tax is

Estate tax is the tax on the transfer of a deceased person's estate to their heirs. The BIR computes the tax due through a one-time transaction, or ONETT, process before any property can be moved into the heirs' names.

Where it is handled

The computation is handled by the Revenue District Office that has jurisdiction over the place where the deceased lived at the time of death. If the deceased had no legal residence in the Philippines, a designated RDO handles it.

Officers there prepare a computation sheet of the tax due before the transfer can proceed.

Why it matters for heirs

You generally cannot transfer the title of land, vehicles, or bank assets of the deceased until the estate tax is settled and the BIR issues the clearing document for the transfer.

Ask AskOnward about the documents, deadlines, and the current process for settling an estate.

Have a specific question?

Ask AskOnward and get an answer grounded in the official BIR rules, with the current forms, fees, and steps for your situation.

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Frequently asked questions

What is estate tax?: It is the tax on transferring a deceased person's estate to their heirs. The BIR computes it before the assets can be transferred to the heirs' names.
Which BIR office handles estate tax?: The Revenue District Office with jurisdiction over where the deceased lived at the time of death. If there was no Philippine residence, a designated RDO handles it.
Can heirs transfer property before estate tax is paid?: Generally no. The estate tax must be settled and the BIR must issue the clearing document before property titles can be transferred to the heirs.

Related guides

This guide is for general information and is not affiliated with the government. For official forms and the latest rules, see the Bureau of Internal Revenue at bir.gov.ph.