Estate tax amnesty extended until June 2023

MANILA – President Rodrigo Duterte on Wednesday signed a law extending the availment period of the estate tax amnesty for two years.

Republic Act 11569 amends RA 11213 or the Estate Amnesty Act to extend the validity of the estate tax amnesty program.

RA 11213, inked by Duterte on February 14, 2019, grants taxpayers a one-time opportunity to settle their tax obligations through an estate amnesty program that gives reasonable tax relief to estates with outstanding estate tax liabilities.

Section 6 of RA 11213 states that estate administrator, lawful heirs, or beneficiaries have two years or until June 15, 2021 to avail of the estate tax amnesty.

Under RA 11569, the new deadline for the filing of estate tax amnesty returns was set on June 14, 2023.

“The payment of the amnesty tax shall be made at the time the Return is filed: Provided, That for nonresident decedents, the Estate Tax Amnesty Return shall be filed and the corresponding amnesty tax be paid at the Revenue District Office No. 39, or any other Revenue District Office which shall be indicated in the Implementing Rules and Regulations,” RA 11569 read.

Those who avail of the estate tax amnesty enjoy immunity from the payment of estate taxes, civil, criminal, and administrative cases and penalties.

The Estate Amnesty Act covers the estate of decedents who died on or before December 31, 2017, with or without assessments duly issued, whose estate taxes have remained unpaid or have accrued, as of December 31, 2017.

RA 11569 mandates the Finance secretary, in coordination with the Internal Revenue commissioner, to issue necessary rules and regulations 60 days after the new law’s effectivity.

The newly-signed law takes effect 15 days after its publication in the Official Gazette or in two newspapers of general circulation.