The Department of Finance (“DOF”) has issued Revenue Regulations No. 06-2019 (“RR 06-2019”), implementing the provisions of Estate Tax Amnesty under Title II of Republic Act No. 11213, otherwise known as the “Tax Amnesty Act”.
The Tax Amnesty Act provides a one-time opportunity to settle estate tax obligations through an estate tax amnesty program that will give reasonable tax relief to estates with outstanding estate tax liabilities. It is available to the estate of decedent/s who died on or before 31 December 2017, with or without assessments duly issued therefor, whose estate tax/es have remained unpaid or have accrued as of 31 December 2017.
However, the Estate Tax Amnesty does not extend to (1) delinquent estate tax liabilities which have become final and executory and those covered by Tax Amnesty on Delinquencies; and (2) properties involved in the following cases pending in courts:
a. Those falling under the jurisdiction of the Presidential Commission of Good Government;
b. Those involving unexplained or unlawfully acquired wealth under the Anti-Graft and Corrupt Practices Act and the Plunder Law;
c. Those involving violations of the Anti-Money Laundering Act;
d. Those involving tax evasion and other criminal offenses under Tax Code; and
e. Those involving felonies of frauds, illegal exactions and transactions and malversation of public funds and property under the Revised Penal Code.
For those who wish to avail of the Estate Tax Amnesty, an estate tax amnesty rate of six percent (6%) shall be imposed on each decedent’s total net taxable estate at the time of death without penalties at every stage of transfer of property, provided, that the minimum estate amnesty tax for the transfer of the estate of each decedent shall be Five Thousand Pesos (P5,000.00).
The Estate Tax Amnesty Return (“ETAR”) shall be filed within two (2) years from the effectivity of RR 06-2019 with the Revenue District Office (“RDO”) having jurisdiction over the last residence of the decedent. In case of a non-resident decedent the executor or administrator in the Philippines, the return shall be filed with the RDO where such executor or administrator is registered or if not yet registered, at the executor’s or administrator’s legal residence. In case of a non-resident decedent with no executor or administrator, the return shall be filed with RDO No. 39. The duly accomplished and sworn ETAR, and Acceptance Payment Form (“APF”), together with the complete documents as enumerated in the ETAR, shall be presented to the concerned RDO for endorsement of the APF prior to the payment of the estate amnesty tax.
After payment, the duly accomplished and sworn ETAR and APF with proof of payment, together with the complete documentary requirements shall be immediately submitted to the RDO in triplicate copies. Failure to submit the same within the two (2)-year period from the effectivity of the Regulations is tantamount to non-availment of the Estate Tax Amnesty and any payment may be applied against the total regular estate tax due inclusive of penalties.
Estates covered by the Estate Tax Amnesty and which have fully complied with all the required conditions shall be immune from the payment of all estate taxes as well as any increments and additions thereto arising from the failure to pay estate taxes for taxable year 2017 and prior years, and from all appurtenant civil, criminal and administrative cases and penalties under the Tax Code. The availment of the Estate Tax Amnesty and the issuance of the corresponding APF do not imply any admission of criminal, civil or administrative liability on the part of the availing estate.