Situs of intangible property for purposes of estate and donor's taxes

In the enumeration below, the property is considered located in the Philippines without considering the residence of the donor or decedent (as a general rule).

[1] Franchise which must be exercise in the Philippines;
[2] In case of corporations or limited partnerships organized or constituted in the Philippines and in line with laws therein, shares, obligations or bonds (SOBs) issued by them;
[3] In case of foreign corporations operating 85% of its business in the Philippines, SOBs issued by them;
[4] In case of foreign corporations, SOBs issued by them if said SOBs have acquired business situs in the Philippines; and
[5] Shares or rights in any partnership, business or industry established in the Philippines.

SEC. 104. Definitions. - For purposes of this Title, the terms 'gross estate' and 'gifts' include real and personal property, whether tangible or intangible, or mixed, wherever situated: Provided, however, That where the decedent or donor was a nonresident alien at the time of his death or donation, as the case may be, his real and personal property so transferred but which are situated outside the Philippines shall not be included as part of his 'gross estate' or 'gross gift': Provided, further, That franchise which must be exercised in the Philippines; shares, obligations or bonds issued by any corporation or sociedad anonima organized or constituted in the Philippines in accordance with its laws; shares, obligations or bonds by any foreign corporation eighty-five percent (85%) of the business of which is located in the Philippines; shares, obligations or bonds issued by any foreign corporation if such shares, obligations or bonds have acquired a business situs in the Philippines; shares or rights in any partnership, business or industry established in the Philippines, shall be considered as situated in the Philippines: Provided, still further, that no tax shall be collected under this Title in respect of intangible personal property: xxx. (Section 104 of the NIRC)

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