BIR: Availment period for estate tax amnesty extended until June 2025

The Bureau of Internal Revenue (BIR) on Tuesday said the period to avail estate tax amnesty has been extended until June 2025.

In a statement, the BIR said the extension was pursuant to the Republic Act No. 11956 or the Estate Tax Amnesty Extension Act, which lapsed into law in August.

The law extends the availment of estate tax amnesty for two years. To recall, the Estate Tax Amnesty program, under the Tax Amnesty Law of 2019, has expired on June 14, 2023.

“With the passage into law of Republic Act No. 11956, the period for availment of Estate Tax Amnesty has been extended until June 14, 2025,” the BIR said.

To implement the law, the BIR said it has issued Revenue Regulations (RR) No. 10-2023, which also expanded the coverage of Estate Tax Amnesty to include the estate of individuals who passed away on or before May 31, 2022, regardless of whether assessments had been issued or not, provided the estate taxes remained unpaid or had accrued as of the said date.

The taxman said the amended regulations also outlines changes to key aspects of the tax amnesty filing and payment process.

Under the RR No. 10-2023, the Estate Tax Amnesty Return (ETAR) can be filed and paid electronically or manually, by the executor or administrator, legal heirs, transferees, or beneficiaries, within June 15, 2023 until June 14, 2025 at any authorized agent bank (AAB); through Revenue Collection Officer (RCO) of any Revenue District Office (RDO); or authorized tax software providers.

Moreover, installment payment is also now allowed within two years from the statutory date of its payment without civil penalty and interest.

The regulations also specify the necessary documents for the processing of applications for Estate Tax Amnesty.

The BIR said the necessary documents include a certified true copy of the Death Certificate, Taxpayer Identification Number (TIN) of decedent and heirs, and government-issued identification card of the executor/administrator of the estate. Specific requirements for real properties (if any) and personal properties, if applicable, are likewise specified in the regulations, together with other applicable requirements.

The taxman added that a proof of settlement of the estate, whether judicial or extrajudicial, need not accompany the Estate Tax Amnesty Return or ETAR if it is not yet available at the time of its filing and payment of taxes, “but no electronic Certificate Authorizing Registration (eCAR) shall be issued unless such proof (such as Extra-Judicial Settlement of Estate or copy of the Court Order) is presented and submitted to the concerned RDO.”

“One eCAR shall be issued per real property, including any improvements, if any. For personal properties included in the estate, a separate eCAR will be issued,” it said.

The BIR said that estates covered by the Estate Tax Amnesty, which have fully complied with all the requirements/conditions set forth in the regulations, including the payment of Estate 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 the period ending May 31, 2022 and prior years, and from all appurtenant civil, criminal and administrative cases, and penalties under the 1997 Tax Code, as amended.”

“With the issuance of Republic Act No. 11956 and its Implementing Rules and Regulations (RR No. 10-2023), we hope that more citizens will avail of the Estate Tax Amnesty considering that its deadline has been extended until June 14, 2025 and its coverage has been expanded,” said BIR Commissioner Romeo Lumagui Jr.

Data from the Department of Finance showed that from the enactment of the Tax Amnesty Law in 2019 until March 31, 2023, the national government collected P7.41 billion from 133,860 beneficiaries who availed of the estate tax amnesty.—AOL, GMA Integrated News