[Ask the Tax Whiz] Is the estate tax amnesty extended?

The Philippine Tax Whiz discusses the extension of the estate tax amnesty pursuant to Republic Act. No 11956

Until when can I avail of estate tax amnesty? Who is covered by this amnesty?

Republic Act (RA) No. 11956 extended the deadline for availment of the estate tax amnesty to June 14, 2025. The extended amnesty covers the estate of the decedent whose taxes have remained unpaid or have accrued as of May 31, 2022.

As an executor of the estate, where can I file the return and pay the estate tax for availment of estate tax amnesty? Can we pay by installment?

Under RA 11956, you may file the estate tax amnesty return either electronically or manually with an authorized agent bank, revenue district office through the revenue collection officer, or authorized tax software provider. You can also pay the estate tax due by installment within two years from the statutory date of its payment, without imposition of civil penalty and interest.

Who are excluded from the availment of estate tax amnesty?

The estate tax amnesty does not apply to cases that have become final and executory, and to properties that are involved in pending cases in certain courts, such as properties involved in Presidential Commission on Good Government cases, graft and corruption cases, Anti-Money Laundering Act cases, tax evasion cases, and other cases involving public funds under the Revised Penal Code.

To avail of estate tax amnesty, what documents do we need to prepare?

The government has made it easier to avail of estate tax amnesty. As provided under RA 11956, the taxpayer only has to submit the following:

Mandatory requirements

1. Certified true copy of the Death Certificate
2. Taxpayer Identification Number (TIN) of decedent and heir/s
3. For “Claims Against the Estate” arising from Contract of Loan, Notarized Promissory Note, if applicable 
4. Proof of the claimed “Property Previously Taxed,” if any
5. Proof of the claimed “Transfer for Public Use,” if any
6. At least one valid government ID of the executor/administrator of the estate, or if there is no executor or administrator appointed, the heirs, transferees, beneficiaries, or authorized representative

For real property/ies, if any 

1. Certified true copy/ies of the Transfer/Original/Condominium Certificate/s of Title of real property/ies
2. Certified true copy of the Tax Declaration of real property/ ies, including the improvements at the time of death or the succeeding available Tax Declaration issued nearest to the time of the death of the decedent, if none is available at the time of death
3. Where declared property/ies has/have no improvement, Certificate of No Improvement issued by the Assessor’s Office at the time of death of the decedent

For personal property/ies, if applicable  

1. Certificate of Deposit/Investment/Indebtedness owned by the decedent alone, or decedent and the surviving spouse, or decedent jointly with others  
2. Certificate of Deposit/Investment/Indebtedness owned by the decedent alone, or decedent and the surviving spouse, or decedent jointly with others
3. Certification of Stocks
4. Proof of validation of other types of personal property

Other requirements, if applicable:

1. If the person transacting/processing the transfer is the authorized representative,duly notarized original Special Power of Attorney and/or, if one of the heirs designated as executor/administrator, sworn statement;
2. If the document is executed abroad, certification from the Philippine Consulate or Apostille; or 
3. If zonal value cannot be readily determined from the documents submitted, location plan/vicinity map.

The internal revenue commissioner may request for alternative documents in the absence of the above documents as may be deemed appropriate.If you need assistance for your amnesty, you may get in touch with us through the TaxWhizPH Mobile App.

Originally published via Rappler