Special InTAX: August 2021 Issue 1 | Volume 3

InTAX is an official publication of R.G. Manabat & Co.'s Tax Group

InTAX is an official publication of R.G. Manabat & Co.'s Tax Group

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special intax


Bureau of Internal Revenue (BIR)


The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 94-2021, 10 August 2021, to clarify the computation of Donor’s Tax, in case the heir waives/renounces his or her share from a specific property that is part of the estate of the decedent. RMC No.94-2021 clarifies the following:

  • General renunciation of an heir’s share from the inheritance is not subject to Donor’s Tax.
  • When the heir waives his or her share solely to identified properties and not to the entire properties of the decedent (partial renunciation), Donor’s Tax shall be imposed on the value forgone as a result of such waiver/renunciation.
  • Donor’s Tax is imposed on the difference between the value of the supposed rightful share of the heir against the actual value of property he received from the estate of the decedent (net value of inheritance waived).
  • The prescribed computation shall be applied consistently throughout all offices processing One-Time Transactions involving estate of the decedent.

The RMC shall take effect immediately.


Attached is the full text of the issuance.

Revenue Memorandum Circular No. 94 – 2021

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