Legal basis and covered amendment
- Republic Act No. 11956 further amends Section 4 of Republic Act No. 11213, as amended by Republic Act No. 11569.
- Republic Act No. 11956 further amends Section 6 of Republic Act No. 11213, as amended by Republic Act No. 11569.
- Republic Act No. 11956 further amends Section 8 of Republic Act No. 11213, as amended by Republic Act No. 11569.
- Republic Act No. 11956 adds rules on payment by installment, implementing rules, repealing, and effectivity.
Coverage of the estate tax amnesty
- Republic Act No. 11956 authorizes and grants a tax amnesty called Estate Tax Amnesty.
- The Estate Tax Amnesty covers the estate of decedents who died on or before May 31, 2022.
- The coverage applies whether or not there are assessments duly issued for the estate.
- The amnesty covers estates whose estate taxes remained unpaid or had accrued as of May 31, 2022.
- The Estate Tax Amnesty does not cover instances enumerated under Section 9 of Republic Act No. 11213.
Availment: who files, when, where, and how
- The executor or administrator of the estate shall file the amnesty return.
- If there is no executor or administrator appointed, legal heirs, transferees, or beneficiaries shall file.
- Availment must be made within June 15, 2023 until June 14, 2025.
- The Estate Tax Amnesty Return must be filed within the period with any authorized agent bank, or the Revenue District Office through a Revenue Collection Officer, or an authorized tax software provider.
- The Estate Tax Amnesty Return may be filed either electronically or manually, using forms prescribed in the Implementing Rules and Regulations.
Payment rules and acceptance mechanism
- Amnesty tax payments must be made at the time the Return is filed.
- Payment must be made through any authorized agent bank, or the Revenue District Office through a Revenue Collection Officer, or an authorized tax software provider.
- The appropriate Revenue District Officer shall issue and endorse an acceptance payment form in a form prescribed by the Implementing Rules and Regulations for the authorized agent bank.
- If the acceptance payment form is not available, the revenue collection agent or authorized tax software provider concerned shall accept the tax amnesty payment.
Filing requirements and document limits
Requirements submitted to the Bureau of Internal Revenue (BIR) by filers must be limited to the items enumerated under the following categories.
Mandatory requirements include:
- Certified true copy of the Death Certificate (DC), or if not available, the certificate of no record of death from the Philippine Statistics Authority and any valid secondary evidence sufficient to establish the fact of death of the decedent;
- The TIN of decedent and heir/s;
- For “claims against the estate” arising from contract of loan, a notarized promissory note, if applicable;
- Proof of the claimed “property previously taxed”, if any;
- Proof of the claimed “transfer for public use”, if any;
- At least one (1) government-issued ID of the executor/administrator, or if none, the heirs, transferees, beneficiaries, or authorized representatives.
For real property/ies, the mandatory items include:
- Certified true copy/ies of the transfer/original condominium certificate/s of title of real property/ies;
- Certified true copy of the tax declaration of real property/ies, if untitled, including improvements at the time of death, or the succeeding available tax declaration issued nearest to the time of death, if none is available at the time of death;
- If the declared property/ies has/have no improvement, a Certificate of No Improvement issued by the assessor’s office at the time of death.
For real property/ies (if applicable), the mandatory items include:
- Certificate of Deposit/Investment Indebtedness owned by the decedent alone, or decedent and the surviving spouse, or decedent jointly with others;
- Certificate of Registration of vehicle/s and other proofs showing the correct value of the same;
- Certificate of Stocks;
- Proof of valuation of shares of stock at the time of death;
- Proof of valuation of other types of personal property.
Other requirements, if applicable, include:
- If the person transacting/processing the transfer is the authorized representative, a duly notarized original Special Power of Attorney (SPA) and/or, if one of the heirs is designated as executor/administrator, a sworn statement;
- If the document is executed abroad, certification from the Philippine Consulate or Apostille;
- If zonal value cannot be readily determined from submitted documents, a location plan/vicinity map.
The Commissioner of Internal Revenue may request for alternative documents if any required document is absent.
The application for payment of estate taxes is a distinct and separate process from the application for transfer of properties.
For purposes of issuance of the Electronic Certificate Authorizing Registration (ECAR) for the transfer of properties, proof of settlement of the estate—whether judicial or extrajudicial—is required by the BIR.
Proof of settlement of the estate is not required for purposes of filing and payment of estate taxes.
Immunities and privileges for compliant estates
- Estates covered by the Estate Tax Amnesty that have fully complied with all conditions of the Act, including payment of the estate amnesty tax, are immune from payment of all estate taxes.
- The immunity covers estate taxes and also any increments and additions arising from failure to pay any and all estate taxes for the period ending May 31, 2022 and prior years.
- Fully compliant covered estates are also immune from all appurtenant civil, criminal, and administrative cases and penalties under the National Internal Revenue Code of 1997, as amended.
Installment payment option
- Payment by installment is allowed within two (2) years from the statutory date for its payment.
- Installment payments made within the two (2) years period incur no civil penalty and interest.
Implementing rules
- Within thirty (30) days from effectivity, the Secretary of Finance, in coordination with the Commissioner of Internal Revenue, shall issue the necessary rules and regulations for effective implementation.
- Failure to promulgate the rules and regulations shall not prevent implementation of the Act upon its effectivity.
Repeal of inconsistent issuances
- All laws, orders, rules, and regulations inconsistent with Republic Act No. 11956 are repealed or amended accordingly.