Estate Tax Amnesty Extended Until 14 June 2023

The Republic Act (RA) No. 11569 was signed into law on 30 June 2021. It extends the period to avail of the provisions of RA No. 11213, or the Tax Amnesty Act, until 14 June 2023.

The Tax Amnesty Act provides a one-time Estate Tax Amnesty to settle estate tax obligations through an estate tax amnesty program that will give reasonable tax relief to estates with deficiency estate taxes.

The Estate Tax Amnesty covers the estate of decedents who died on or before 31 December 2017, with or without assessments duly issued therefor, whose estate taxes have remained unpaid or have accrued as of December 31, 2017.

The estate may enjoy the immunities and privileges of the Estate Tax Amnesty and pay an estate amnesty tax at the rate of six percent (6%) based on the decedent’s total net estate at the time of death. If the allowable deductions applicable at the time of death of the decedent exceed the value of the gross estate, the heirs, executors, or administrators may avail of the benefits of Estate Tax Amnesty, and pay the minimum estate amnesty tax of Five thousand pesos (₱5,000.00).

Estates covered by the Estate Tax Amnesty, which have fully complied with all the conditions set forth in the Tax Amnesty Act, including the payment of the estate amnesty tax, shall be immune from the payment of all estate taxes, as well as any increments and additions thereto, arising from the failure to pay any and all estate taxes for taxable year 2017 and prior years, and from all appurtenant civil, criminal, and administrative cases and penalties under the National Internal Revenue Code of 1997, as amended.

To reiterate, the Estate Tax Amnesty covers the estate of decedents who died on or before 31 December 2017 only. It does not exempt the estate from paying the basic estate tax, as the amnesty extends only to penalties, interest, and fines associated with the late payment of said tax.

The availment of the benefits of RA No. 11569 shall observe the requirements and procedure under its Implementing Rules and Regulations to be promulgated by the Bureau of Internal Revenue.

If the Estate Tax Amnesty requirements and procedures appear to be overwhelming and complicated, you should consider asking the advice of an expert, especially a tax lawyer or an estate attorney.

For information related to settlement of estate, you may read our article about it through this link: https://www.arceotandoc.com/single-post/the-process-of-extrajudicial-settlement-of-estate-in-the-philippines.

Arceo & Tandoc Law Firm is a property and estate law office in Quezon City that serves clients anywhere in the Philippines. Its estate and tax lawyers have an extensive experience in facilitating judicial and extrajudicial settlement of estates. Our property and CPA lawyers have successfully advised and represented clients in estate matters. Should you wish to learn more about the Estate Tax Amnesty or Tax Amnesty Act, you may contact us at lawfirm@arceotandoc.com to get in touch with any of our estate attorneys.