Bureau of Internal Revenue
The Bureau of Internal Revenue (“BIR”) issued Revenue Regulations (“RR”) No. 6-2019, 29 May 2019, implementing the provisions of Estate Tax Amnesty under Republic Act (“RA”) No. 11213 (“Tax Amnesty Act”).
The estate tax amnesty shall cover the estate of decedent/s who died on or before 31 December 2017, with or without a duly issued assessment, whose estate tax/es have remained unpaid or have accrued as of 31 December 2017.
The Estate Tax Amnesty shall not extend to the following:
A. Delinquent estate tax liabilities which have become final and executory;
B. Those covered by Tax Amnesty on Delinquencies; and
C. Properties involved in cases pending in appropriate courts:
a. Falling under the jurisdiction of the Presidential Commission of Good Government;
b. Involving unexplained or unlawfully acquired wealth under RA No. 3019 (“Anti-Graft and Corruption Practices Act”) and RA No. 7080 (“Act Defining and Penalizing the Crime of Plunder”);
c. Involving violations of RA No. 9160 (“Anti-Money Laundering Act”), as amended;
d. Involving tax evasion and other criminal offenses under Chapter II of Title X of the National Internal Revenue Code (“NIRC”) of 1997, as amended; and
e. Involving felonies of frauds, illegal exactions and transactions and malversation of public funds and property under Chapters III and IV of Title VII of the Revised Penal Code.
Rate of Estate Tax
A six percent (6%) estate amnesty tax rate shall be imposed on each decedent’s total net taxable estate at the time of death without penalties at every stage of transfer of property. However, the minimum estate amnesty tax for transfer of the estate to each decedent shall be Five Thousand Pesos (Php5,000.00).
The provisions of the NIRC of 1997, as amended, or the applicable tax laws prevailing at the time of death of the decedent with respect to the valuation, manner of computation and other related matters shall apply suppletorily.
Composition of Gross Estate
|Residents and citizens||All properties wherever situated|
|Non-resident aliens||Only real and personal properties situated in the Philippines|
Valuation of Gross Estate
|General rule||Fair market value as of time of death|
|Real property||Higher between zonal value as determined by Commissioner of Internal Revenue and fair market value as shown in the schedule of values fixed by the provincial and city assessors|
|Stocks listed and traded in the stock exchange||Price at the time of death or the arithmetic mean between the highest and lowest quotation at the date nearest the date of death, if none is available on date of death itself|
|Stocks not listed and traded in the stock exchange||Book value of common shares and par value for preferred shares as shown in the audited financial statement of the issuing corporation nearest to the date of death of the decedent|
|Proprietary shares in any association, recreation or amusement club||Bid price on the date of death or nearest to the date of death, if none is available on date of death itself, as published in the newspaper of general circulation|
|Cash in bank in local and/or foreign currency||Peso value of the balance at the date of death of the decedent|
Filing of the Return
The Estate Tax Amnesty Return (“ETAR”) (BIR Form No. 2118-EA) shall be filed by the executor or administrator, legal heirs, transferees or beneficiaries within two (2) years from the effectivity of these Regulations with the ff:
|Decedent||Place of Filing|
|Resident||RDO having jurisdiction over the last residence of the decedent|
|Non-resident with executor or administrator in the Philippines||RDO where such executor/administrator is registered, or if not yet registered, at the legal residence of the executor/ administrator|
|Non-resident with no executor or administrator in the Philippines||RDO No. 39- South Quezon City|
The following shall also be observed:
a. The duly accomplished and sworn ETAR, and Acceptance Payment Form (“APF”) (BIR Form No. 0621-EA), together with the complete documents as enumerated in the ETAR, shall be presented to the concerned RDO for APF endorsement. Only the endorsed APF shall be presented to and received by the AAB or RCO.
b. Payment of the estate amnesty tax.
c. The duly accomplished and sworn ETAR and APF, with proof of payment, together with the complete documentary requirements shall be submitted to the RDO in triplicate copies. Failure to submit the same within two (2)-year period from the effectivity of these Regulations is tantamount to non-availment of the Estate Tax Amnesty and any payment made may be applied against the total regular estate tax due, inclusive of penalties.
In case of undeclared properties, the legal heirs/executors/administrators can file an ETAR or an amended ETAR, and pay the estate amnesty tax, without penalties, based on the net taxable value of the Net Undeclared Estate within two (2) years from the effectivity of these regulations. After the lapse of the two-year period, undeclared properties shall be subject to the applicable estate tax rate prevailing at the time of death including interest and penalties.
· Certificate of Availment of the Estate Tax Amnesty shall be issued by the concerned RDO within fifteen (15) calendar days from the receipt of the application and complete documentary requirements
· One (1) eCAR shall be issued per real property including the improvements, if any. A separate eCAR shall be issued for personal properties.
· Estates covered by Estate Tax Amnesty, which have fully complied with all the conditions and payment of estate amnesty tax, shall be immune from the payment of all estate taxes as well as any increments and additions arising from the failure to pay any and all estate taxes for taxable year 2017 and prior years, and from all appurtenant civil, criminal and administrative cases, and penalties under the NIRC, as amended.
· Availment of the Estate Tax Amnesty and issuance of the corresponding APF does not imply any admission of criminal, civil or administrative liability on the part of the availing estate.
Full text of the issuance together with the following annexes are attached for your reference.
|Annex “A”||Allowable Deductions from the Gross Estate for Residents, Citizens and Non-Resident Aliens|
|Annex “B”||Estate Tax Amnesty Return (BIR Form No. 2118-EA)|
|Annex “C”||Acceptance Payment Form Estate Tax Amnesty (BIR Form No. 0621-EA)|
|Annex “D”||Certificate of Availment of the Estate Tax Amnesty|
|Guidelines and Instructions for BIR Form No. 2118-EA Estate Tax Amnesty Return|
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