Former President Rodrigo Duterte signed Republic Act No. 11569 into law amending Section 6 of Republic Act No. 11213, otherwise known as the “Estate Tax Amnesty Act”. This to extend the deadline to avail of the estate tax amnesty until 14 June 2023.
What is the Estate Tax Amnesty Act?
Republic Act No. 11213, also known as Estate Tax Amnesty Act, was enacted into law on 14 February 2019. It grants the 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.
When is the Deadline for Availing Estate Tax Amnesty?
Under Republic Act No. 11213, the executor, administrator, legal heirs, or beneficiaries have 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, it is subjected to extension by the law.
The Estate Tax Amnesty period of availment is extended until June 14, 2023 pursuant to Republic Act No. 11569, amending Republic Act No. 11213.
What are the Requirements for Estate Tax Amnesty?
- Duly accomplished and sworn Estate Tax Amnesty Return (ETAR)
- Acceptance Payment Form (APF) with proof of payment, together with the complete documentary requirements
Moreover, these requirements shall be submitted to the RDO in triplicate (3) copies. Failure to submit the same until June 14, 2023 is tantamount to non-availment of the Estate Tax Amnesty.
What are the Amendments to the Availment of Estate Tax Amnesty?
The following amendments or clarifications to the existing rules on availment of Estate Tax Amnesty are also provided by the BIR:
- Within five (5) working days from receipt of ETAR, APF and other required documents, the concerned RDO shall endorse the APF for payment with the Authorized Agent Banks (AABs) or Revenue Collection Officers (RCOs). Only these duly endorsed APF shall be presented to and received by the AAB or RCO.
- Proof of settlement of the estate, whether judicial or extrajudicial, is not required in filing of the ETAR if it is not yet available at the time of filing. However, no electronic Certificate Authorizing Registration (eCAR) shall be issued unless such proof is presented and submitted to the concerned RDO.
- One eCAR shall be issued per real property until such time that the eCAR system is already capable of generating one (1) eCAR for all properties covered by a single transaction.
- An eCAR shall only be issued upon submission of the proof of estate settlement (e.g., Extrajudicial Settlement of Estate (EJS), Copy of Court Order). If these documents include properties not indicated in the filed ETAR, the particular properties shall be excluded from the eCAR, unless additional estate tax amnesty payment shall be made within the amnesty period. Otherwise, the additional estate tax to be paid for the additional properties indicated in the EJS or Court Order shall be subject to applicable estate tax rate including interests and penalties.
Need further information and assistance regarding Estate Tax Amnesty? Talk to our team at Duran & Duran-Schulze Law to know more about the requirements and process. Call us today at (+632) 8478 5826 or +63 917 194 0482, or send an email to info@duranschulze.com for more information.
