How To Avail The Extended Estate Tax Amnesty In The Philippines?
This ultimate guide to the extended tax amnesty will walk you through how to legally get away from paying high Estate Tax.
My privilege to share with you the estate tax amnesty, this is the last chance where we can avail of the estate that's amnesty law which will expire on June 14 2023 so we have about 11 months and a half to avail of it so let's get started.
What is the Estate Tax Amnesty law?
It has three very great and time-limited offers,
- First if you pay now you get a lower tax rate
- Second if you pay now you don't have to pay interest and penalties
- Third is you if you pay now you get immunity from any civil criminal and administrative actions due to the taxes due
- Fourth benefit wherein all the filings are presumed correct and final carries with it a conclusive presumption on that what you filed even an illusion governor and they will not question it
Who can avail of the estate tax amnesty?
Estates of people who died before 2018, with or without assessments duly issued, whose estate taxes have remained unpaid. (Section 2)
What are the exceptions?
1. Estate tax cases that have been declared final and executory;
2. Properties involved in cases pending before the courts:
a. Cases in Presidential Commission of Good Government;
b. Cases of Anti-Graft and Corrupt Practices Act and Act Defining and Penalizing the Crime of Plunder;
c. Cases of Anti-Money Laundering Act;
d. Cases involving tax evasion and other criminal offenses under Chapter II of Title X of the NIRC
e. Cases involving felonies of frauds, illegal exactions and transactions and malversation of public funds and property under the Revised Penal Code.
Until when can it be avail?
It runs until June 14, 2023 supposedly it was supposed to expire last year but because of the pandemic so in extending congress for two years.
So what is the tax rate exactly?
The tax rate if one avails of the estate tax amnesty is six percent (6%) based on the decedent’s NET TAXABLE ESTATE…and “shall be imposed on each decedent's total net taxable estate at the time of death.
Provided, that the minimum of the estate of each decedent shall be PHP 5,000
How do you compute this?
six percent (6%) based on the decedent’s NET TAXABLE ESTATE as of the time of death without penalties at every stage of transfer of property in cognizance with the rules of succession under the Civil Code of the Philippines on the transmission of properties, interests, rights and obligations of the decedent. Provided…minimum estate amnesty tax for…each decedent shall be P5,000.00.
What do you need to prepare?
A. Preparatory documentary requirements
I. From the Philippine Statistics Authority or equivalent:
- Death Certificate of decedent When applicable:
- Marriage Certificate (with surviving spouse)
- Birth Certificate (of children, grandchildren, siblings heirs)
- Death Certificate (of heirs)
II. From the Barangay
- Certification of residency of deceden
- Government Issued ID
- Tax Indentification Numbers of Heirs
- Passports (if residing abroad, foreign citizenship)
- At least one (1) 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
III. Proof of Identification of heirs:
- Government Issued ID
- Tax Indentification Numbers of Heirs
- Passports (if residing abroad, foreign citizenship)
- At least one (1) 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
B. List of Assets
C. List of Liabilities
D. Distribution
E. Forms and attachments
Get the detailed list of requirements in our FREE Estate Tax Amnesty e-book. You can download your copy by clicking here.
How Do You Pay?
After filling out the Estate Tax Amnesty Return1, present this to the appropriate BIR RDO together with the documents needed. Go to the ONETT2 desk and present your ETAR. If the ONETT officer agrees, he will issue you an Acceptance Payment Form (APF) from the pertinent BIR Revenue District Office. You may then pay the taxes at the authorized agent bank
Here's a summary of the video in 5 bullet points:
- Estate Tax Amnesty: An overview of the estate tax amnesty program in the Philippines is presented.
- Eligibility: The law applies to estates of individuals who passed away before 2018 and have unsettled estate taxes.
- Benefits: The estate tax amnesty offers reduced tax rates, no interest and penalties, immunity from legal actions, and conclusive presumption of correct filings.
- Tax Rate: The tax rate under the estate tax amnesty is reduced to 6% of the decedent's net taxable estate.
- Documentation and Process: The process involves preparing necessary documents, collating assets and liabilities, distribution, computation, and payment through the relevant tax authority.
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