Definitions
- Basic tax assessed: Latest tax assessment excluding interest, penalties, surcharges.
- Net estate: Gross estate minus allowable deductions at decedent’s time of death.
- Net undeclared estate: Difference between declared and total net estate.
- Statement of Assets, Liabilities, and Networth: Declaration of assets, liabilities, and net worth as of December 31, 2017.
- Total asset: Aggregate of all assets regardless of nature and location.
Estate Tax Amnesty (Title II)
- Covers estates of decedents who died on or before December 31, 2017, with unpaid or accrued estate taxes.
- Tax rate for amnesty: 6% of total net estate or net undeclared estate if a return was filed.
- Minimum tax for estates with deductions exceeding gross estate: PHP 5,000.
- Filing period: Within two years from effectivity of Implementing Rules and Regulations.
- Filing venue: BIR Revenue District Office with jurisdiction over decedent’s last residence.
- Filing documents: Sworn Estate Tax Amnesty Return, proof of estate settlement.
- Effect: Amnesty return is presumptively correct; immunity from related civil, criminal, and administrative liabilities.
- Exclusions: Cases finalized or pending involving corruption, unexplained wealth, money laundering, tax evasion crimes, and felonies under the Revised Penal Code.
General Tax Amnesty (Title III)
- Covers all national internal revenue taxes unpaid for taxable year 2017 and prior years.
- Taxpayers may pay amnesty tax based on either total assets (2%) or total net worth (varied rates depending on taxpayer type).
- Minimum tax thresholds based on taxpayer classification (individuals, corporations by capital, other juridical entities).
- Filing within one year from effectivity of Implementing Rules and Regulations.
- Required documents: Sworn General Tax Amnesty Return with notarized Statement of Total Assets or Statement of Assets, Liabilities, and Networth.
- Incentive for early payment: Tax due reduced by 20%, 15%, or 10% depending on payment timing.
- Immunities granted include exemption from taxes, penalties, and liability for audits for covered years; confidentiality of information; no examination of books except for verifying claims for refunds or credits.
- Exceptions include withholding agents failing to remit taxes and taxpayers with pending or final court cases involving corruption, money laundering, tax evasion, or fraud.
Tax Amnesty on Delinquencies (Title IV)
- Covers internal revenue tax delinquencies for taxable years 2017 and prior years.
- Includes final and executory assessments, pending criminal tax cases, and withholding agents who failed to remit taxes.
- Amnesty tax rates vary by case type: final assessments (40%), court judgments (50%), pending criminal cases with assessments (60%), withholding agents not remitting tax (100%).
- Filing within one year of Implementing Rules and Regulations effectiveness; requires sworn Tax Amnesty on Delinquencies Return with Certification of Delinquency.
- Payment due upon filing; issuance of Acceptance Payment Form required.
- Immunity upon compliance includes settlement of delinquency and termination of related cases, with cancellation of assessments and lifting of levy actions.
Confidentiality and Non-Use of Information (Title V)
- Information in Tax Amnesty Returns and related filings is confidential and not to be used in investigations or prosecutions.
- Statements filed under this Act supersede previous income or asset declarations and cannot be used against the taxpayer.
Information Management System and Use of Proceeds (Title VI)
- Department of Finance to coordinate with relevant agencies to maintain an information management system from tax amnesty data.
- Compliance with Data Privacy Act required.
- PHP 500 million from collections to establish tax database; excess funds to support social and infrastructure projects under TRAIN law.
Offenses and Penalties (Title VII)
- Unlawful divulging of confidential tax information by BIR officers punishable by fines from PHP 50,000 to PHP 1,000,000 and imprisonment from 2 to 5 years.
- Unauthorized disclosure of Tax Amnesty Return information punishable by fine of PHP 150,000 and imprisonment of 6 to 10 years; officers offenders face higher penalties and perpetual disqualification from public office.
Congressional Oversight and Final Provisions (Title VIII)
- Commissioner of Internal Revenue to report to an Oversight Committee within six months after amnesty periods.
- Secretary of Finance to issue rules and regulations within 90 days of effectivity.
- Separability and repealing clauses included.
- Act effective 15 days after complete publication.