Section 2
SEC. 2. Section fifteen hundred and thirty-nine of the Administrative Code is hereby amended so as to read as follows: "SEC. 1539. Deductions to be made in determining net taxable amount.—In order to determine the net sum which must bear the tax, when an inheritance is concerned, there shall be deducted, in case of a resident, the expenses of the funeral and burial of the deceased, the proper capital of the surviving spouse, and his or her part of the conjugal property, the proven debts, the exempted portions, the judicial expenses of the testamentary or intestate proceedings, and claims against insolvent persons. "In the case of a nonresident, there shall be deducted from the value of that part of his gross estate which at the time of his death is situated in the Philippine Islands that proportion of the deductions specified in the preceding paragraph which the value of such part bears to the value of his entire gross estate, wherever situated, but in no case shall the amount so deducted exceed ten per centum of the value of that part of his gross estate which at the time of his death is situated in the Philippine Islands: Provided, That no deduction shall be allowed in the case of a nonresident unless the executors or administrators or the heirs, as the case may be, furnish the Collector of Internal Revenue with a list of the gross estate not situated in the Philippine Islands and its corresponding value at the time of his death."