Estate Tax Amnesty Deadline Extension

Under Republic Act No. 11213 or the “Tax Amnesty Act”, executors, administrators, legal heirs, or beneficiaries had two (2) years from the effectivity of the Implementing Rules and Regulations of the said law or until June 15, 2021 to avail of the Estate Tax Amnesty (ETA). However, the unprecedented COVID-19 pandemic and the enforced quarantine protocols proved to be a challenge for those who intend to comply with all the requirements, prompting lawmakers to push for further extension as the government continues to seek more ways to increase its tax collections. 

Because of this, the period for the availment of the ETA has been extended until June 14, 2023 as amended by Republic Act No. 11569 and per Revenue Regulations (RR) No. 17-2021 issued by the Bureau of Internal Revenue (BIR) on August 3, 2021.

What is Estate Tax Amnesty?

The Tax Amnesty Act was enacted into law on February 14, 2019 to grant taxpayers a one-time opportunity to settle their tax obligations through an estate tax amnesty program that extends reasonable tax reliefs to estates with outstanding estate tax liabilities. This shall cover the estates of decedent/s who died on or before December 31, 2017, with or without assessments duly issued therefore, and whose estates taxes have remained unpaid or have accrued as of December 31, 2017.

Tax Rate and Basis

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).

Immunities and Privileges

Estates which have fully complied with all the conditions set forth RR No. 6-2019 as amended by RR No. 17-2021, including the payment of said tax amnesty 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 1997 Tax Code, as amended. 

The availment of the ETA and the issuance of the corresponding Acceptance Payment Form do not imply any admission of civil, criminal, or administrative liability on the part of the availing estate. 

Revenue Regulations No. 6-2019, as amended by RR No. 17-2021
Republic Act No. 11213, as amended by RA No. 11569