Estate Tax Amnesty extended until 14 June 2025
Authors: Attys. Mary Elizabeth M. Belmonte and Patrick Anthony L. Caldo
The deadline for the availment of the Estate Tax Amnesty was extended until 14 June 2025 by virtue of Republic Act (R.A.) No. 11956 which lapsed into law last 5 August 2023. R.A. No. 11956 also extends the coverage of the Estate Tax Amnesty to include the estates of decedents who died on or before 31 May 2022.
With the passage of R.A. No. 11956, the heirs of decedents, who died on or before 31 May 2022 and whose estates have not yet been settled, may avail of the six percent (6%) estate tax amnesty rate without any penalties or interest until 14 June 2025. The Bureau of Internal Revenue (BIR) issued Revenue Regulation (R.R.) No. 10-2023, amending certain provisions of R.R. No. 6-2019, to implement the extension of the availment of the Estate Tax Amnesty.
Under Section 2 of R.R. No. 10-2023, those who wish to avail of the Estate Tax Amnesty may file a sworn Estate Tax Amnesty Return and pay the corresponding estate tax due, either electronically or manually, with any authorized agent bank, through revenue collection officer of any Revenue District Office (RDO), or authorized tax software provider as defined in Revenue Memorandum Order No. 8-2019. The estate tax due may be paid in installment within two (2) years from the statutory date for its payment without civil penalty or interest subject to certain conditions.
The estate tax due shall be based on the value of the gross estate at the time of the decedent’s death. Gross estate shall consists of all properties and interests in properties of the decedents but shall exclude the land awarded to agrarian reform beneficiaries (ARBs) pursuant to R.A. No. 11953. ARBs are the farmers or farmworkers who were granted lands under Presidential Decree No. 27, R.A. No. 6657, as amended, and R.A. No. 9700, and who have outstanding loan balances payable to the Land Bank of the Philippines and to private landowners as of the effectivity of R.A. No. 11953.
The mandatory requirements for the availment of the Estate Tax Amnesty are provided under of Section 2 of R.R. No. 10-2023 and shall be limited to the following:
- Certified true copy of the Death Certificate;
- Tax Identification Number of decedent and heir/s;
- For claims against the estate arising from contract of loan, notarized promissory note, if applicable;
- Proof of the claimed property previously taxed, if any;
- Proof of the claimed transfer for public use, if any; and
- At least one (1) government-issued identification card (ID) of the executor/administrator of the estate, the heirs, transferees, beneficiaries or authorized representative.
Section 2 of R.R. No. 10-2023 also enumerates the documentary requirements for real and personal properties included in the gross estate of the decedent.
Significantly, the proof of settlement of the estate, whether judicial (Court Order) or extrajudicial (Extra-Judicial Settlement of Estate), shall not be required for purposes of availing the Estate Tax Amnesty. It shall only be required for the issuance of the Electronic Certificate Authorizing Registration (eCAR) for the transfer of properties.
The passage of R.A. No. 11956 is a much welcomed relief to all taxpayers whose estates have not yet been settled. This encourages taxpayers to avail of the Estate Tax Amnesty and finally put to rest the settlement of the estates of their beloved and departed relatives.
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