Question & AnswerQ&A (Republic Act No. 11213)
The short title of Republic Act No. 11213 is the "Tax Amnesty Act."
The main policy is to protect and enhance revenue administration and collection, make the country's tax system more equitable, and simplify tax compliance requirements.
It refers to the latest amount of tax assessment issued by the Bureau of Internal Revenue against the taxpayer, excluding interest, penalties, and surcharges.
Estates of decedents who died on or before December 31, 2017, with unpaid or accrued estate taxes as of December 31, 2017, except for specified exceptions under Section 9.
The estate amnesty tax rate is six percent (6%) based on the decedent's total net estate at the time of death or on net undeclared estate if an estate tax return was previously filed.
It must be filed with the Revenue District Office having jurisdiction over the last residence of the decedent within two (2) years from the effectivity of the Implementing Rules and Regulations of the Act, with payment made at filing.
It grants immunity from payment of estate taxes and any increments, civil, criminal, and administrative cases and penalties related to unpaid estate taxes for taxable year 2017 and prior years, upon full compliance and payment of the estate amnesty tax.
Estates involved in final and executory cases, or cases under the Presidential Commission on Good Government, Anti-Graft laws, Anti-Money Laundering Act, tax evasion criminal offenses, and certain criminal felonies as listed in Section 9 are excluded.
Income tax, withholding tax, capital gains tax, donor's tax, value-added tax, other percentage taxes, excise tax, documentary stamp tax, including VAT and excise tax collected by the Bureau of Customs for taxable year 2017 and prior years.
Taxpayers may choose to pay an amnesty tax either at 2% based on total assets as of December 31, 2017, or based on total networth with rates ranging from 5% with specified minimum amounts depending on taxpayer type and capital.
A notarized Statement of Total Assets or a notarized Statement of Assets, Liabilities, and Networth as of December 31, 2017, must accompany the filing.
The taxpayer is immune from payment of taxes and additions, and from all related civil, criminal, and administrative cases and penalties for taxable year 2017 and prior years covered by the amnesty upon full compliance and payment.
Withholding tax agents who failed to remit withheld taxes; taxpayers with pending cases related to the Presidential Commission on Good Government, Anti-Graft laws, Anti-Money Laundering, tax evasion criminal offenses; final and executory tax cases; and final and executory delinquencies or assessments.
Delinquencies and assessments final and executory, pending criminal tax cases, tax cases under final judgment, and withholding tax agents who failed to remit taxes for taxable year 2017 and prior years.
40% for delinquencies and assessments final and executory, 50% for tax cases with final judgment, 60% for pending criminal cases with assessments, and 100% for withholding tax agents who withheld but did not remit taxes.
Information or data contained in the Tax Amnesty Return and related documents shall be confidential and not used in investigations or prosecutions, with unlawful disclosure punishable by fines and imprisonment under penal provisions.
A fine of one hundred fifty thousand pesos (P150,000) and imprisonment of six (6) to ten (10) years; if the offender is a government officer or employee, penalties under Section 270 of the National Internal Revenue Code apply, plus perpetual disqualification from holding public office.
General Tax Amnesty must be filed within one (1) year from the effectivity of the Implementing Rules and Regulations; Estate Tax Amnesty within two (2) years; Tax Amnesty on Delinquencies also within one (1) year of implementation.
The tax amnesty granted under each Title (Estate Tax Amnesty, General Tax Amnesty, Tax Amnesty on Delinquencies) becomes final and irrevocable, granting immunities and privileges provided by law.