The President has signed into law Republic Act No. 11569 (“RA 11569”) amending Section 6 of Republic Act No. 11213 (“RA 11213”), otherwise known as the “Tax Amnesty Act”, to extend the deadline to avail of the estate tax amnesty until 14 June 2023.
RA 11213 was enacted into law on 14 February 2019. It had granted taxpayers a one-time opportunity to settle estate tax obligations through an estate tax amnesty program that gave reasonable tax reliefs to estates with outstanding estate tax liabilities. The estate tax amnesty covered estates of decedents who died on or before 31 December 2017, with or without assessments duly issued therefore, and whose estate taxes have remained unpaid or have accrued as of 31 December 2017.
Under RA 11213, the executor, administrator, legal heirs, or beneficiaries had two (2) years from the effectivity of the Implementing Rules and Regulations of the said law or until 14 June 2021 to avail of the estate tax amnesty.
However, an unforeseen event, the COVID-19 pandemic, happened. This constrained our government to impose unprecedented lockdown and quarantine protocols. For those who intended to avail of the estate tax amnesty program, the pandemic robbed them of the time and opportunity to comply with the requirements and to actually avail of the estate tax amnesty.
Being aware of this and also of the need to increase tax collections, which reportedly dropped during the pandemic, the lawmakers pushed for the extension of the estate tax amnesty deadline.
The Secretary of Finance, in coordination with the Commissioner of Internal Revenue, is expected to issue the necessary revenue regulations to implement RA 11569 within sixty (60) days from the effectivity of the said law.
For questions, please contact:
Head, Tax Practice