Estate Amnesty Tax 101
It has been a joyous moment for those individuals with property inheritance now that the Tax Amnesty bill was signed into law by President Rodrigo Duterte last February 14, 2019 as Republic Act No. 11213 or the Tax Amnesty Act.
Now to break down in details, here’s what the bill is all about:
The estate tax amnesty shall cover the estate of decedents who died on or before 31 December 2017, with or without assessments duly issued.
Rate & Basis
The estate tax amnesty tax rate is 6% of the decedent’s total net estate at the time of death, or 6% of the decedent’s undeclared estate if an estate tax return was previously filed with the BIR.
If the allowable deductions applicable at the time of death exceed the value of the gross estate, a minimum estate amnesty tax of PHP5,000 shall be paid.
The availment of the estate tax amnesty shall be done for every stage of the transfer of the property. This means that if the property is registered in the name of decedent(s) prior to the last decedent or the so-called multiple estates, the 6% tax shall be imposed on the net estate of every decedent. In other words, a one-time settlement across multiple estates is not allowed.
Period of Availment & Filing
Taxpayers can avail of the estate tax amnesty, within two (2) years from the effectivity of the implementing rules and regulations (IRR), by filing an Estate Tax Amnesty Tax Return and paying the tax in the BIR Revenue District Office (RDO) which has jurisdiction over the last residence of the decedent.
The Tax Amnesty Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least one (1) newspaper of general circulation. It was published in the online Official Gazette on February 18, 2019.
Those who availed of the estate tax amnesty and have fully complied with the conditions will be granted certain immunities and privileges under the law.
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