Further Extending the Period of Availment of the Estate Tax Amnesty

Offer of the Er. Marp TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) P2:31 First Regular Session FEB 18 SENATE RECEIVED BY: S. No. _ 1865 Introduced by Senator Juan Miguel "Migz" F. Zubiri AN ACT FURTHER EXTENDING THE PERIOD OF AVAILMENT OF THE ESTATE TAX AMNESTY, AMENDING FOR THE PURPOSE SECTIONS 4, 6, AND 8 OF REPUBLIC ACT NO. 11213, AS AMENDED, OTHERWISE KNOWN AS THE "TAX AMNESTY ACT" EXPLANATORY NOTE The Tax Amnesty Act was established to provide heirs with a practical mechanism to alleviate financial burden on property owners and encourage settlement of outstanding tax obligations, and settle long-outstanding estate tax liabilities and facilitate the lawful transfer of inherited properties. Recognizing the persistent difficulties faced by Filipino families in complying with estate tax requirements, Congress enacted a series of measures to ease the burden of compliance. Republic Act No. 11213, was passed to encourage heirs to settle unpaid estate taxes by allowing payment of the basic tax due with the condonation of penalties, surcharges, and interest. Subsequently, the availability period was further extended under Republic Act No. 11569, and again under Republic Act No. 11956, which moved the deadline to 14 June 2025. However, with the lapse of this deadline, many estates remain unsettled, prompting the need for a further extension. Despite the government's good-faith efforts, a significant number of Filipino families, particularly those from low- and middle-income sectors still continue to face serious obstacles in regularizing inherited properties. Financial constraints, incomplete or missing documents for long-unregistered lands, limited access to legal assistance, and the high cost of probate proceedings have hindered compliance. This proposed measure seeks to extend the availment of the Estate Tax Amnesty until 31 December 2028 and to expand its coverage to estates of decedents who passed away on or before 31 December 2024.

Beyond the humanitarian aspect of this bill, it advances broader economic objectives. Once titles are properly transferred to the heirs, they are able to sell, lease and develop or use these assets for collateral inherited properties to gain greater economic value thereby stimulating activity in the land and credit markets. Increased transactions in turn generate additional revenues for the government through related taxes such as capital gains tax, documentary stamp tax, and local transfer taxes. In view of the foregoing, the immediate passage of this bill is earnestly sought. JUAN MIGUEL "MIGZ" F. ZUBIRT

Office of the is we starg TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session P2:31 • 26 FEB 18 SENATE RECEIVED BY: Senate Bill No. 1865 Introduced by Senator Juan Miguel "Migz" F. Zubiri AN ACT FURTHER EXTENDING THE PERIOD OF AVAILMENT OF THE ESTATE TAX AMNESTY, AMENDING FOR THE PURPOSE SECTIONS 4, 6, AND 8 OF REPUBLIC ACT NO. 11213, AS AMENDED, OTHERWISE KNOWN AS THE "TAX AMNESTY ACT" Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

SECTION 1. Section 4 of Republic Act No. 11213, as amended, is hereby

further amended to read as follows: "SEC. 4. Coverage. - There is hereby authorized and granted a tax amnesty, hereinafter called Estate Tax Amnesty, which shall cover the estate of decedents who died on or before [May 31, 2022] DECEMBER 31, 2024, with or without assessments duly issued therefor, whose estate taxes have remained unpaid or have accrued as of [May 31, 2022] DECEMBER 31, 2024: Provided, however, That the Estate Tax Amnesty hereby authorized and granted shall not cover instances enumerated under Section 9 hereof."

SEC. 2. Section 6 of the same Act, as amended, is hereby further

amended to read as follows: "Sec. 6. Availment of the Estate Tax Amnesty; When and Where to File and Pay. - The executor or administrator of the estate, or if there is no executor or administrator appointed, the legal heirs, transferees or beneficiaries, who wish to avail of the Estate Tax Amnesty shall, within June 15, 2023 until [June 14, 2025] DECEMBER 31, 2028, file either electronically or manually, with any authorized agent bank, Revenue District Office through Revenue

Collection Officer, or authorized tax software provider: Provided, That the appropriate Revenue District Officer shall issue and endorse an acceptance payment form, in such form as may be prescribed in the Implementing Rules and Regulations of this Act for the authorized agent bank, or in the absence thereof, the revenue collection agent or authorized tax software provider concerned, to accept the tax amnesty payment: Provided, further, That for the availment of the estate tax amnesty, the requirements to be submitted to the Bureau of Internal Revenue (BIR) by the filers of the estate tax amnesty shall be limited to the following: " (A) Mandatory requirements: "(1) Certified true copy of the Death Certificate (DC), or if not available, the certificate of no record of death from Philippine Statistics Authority and any valid secondary evidence including, but not limited to, those issued by any government agency/office sufficient to establish the fact of death of the decedent; "(2) Taxpayer Identification Number (TIN) of decedent and heir/s; "(3) For "claims against the estate" arising from contract of loan, notarized promissory note, if applicable; "(4) Proof of the claimed "property previously taxed", if any; "(5) Proof of the claimed "transfer for public use", if any; and "(6) At least one (1) government-issued identification card (ID) of the executor/administrator of the estate, or if there is no executor or administrator appointed, the heirs, transferees, beneficiaries or authorized representatives. "(B) For real property/ies, if any: "(1) Certified true copy/ies of the transfer/original condominium certificate/s of title of real property/ies; "(2) Certified true copy of the tax declaration of real property/ies, if untitled, including the improvements at the time of death or the succeeding available tax declaration issued nearest to the time of death of the decedent, if none is availbale at the time of death; and

(3) Where declared property/ies has/have no improvement, Certificate of No Improvement issued by the assessor's office at the time of death of the decedent. "(C) For real property/ies, if applicable: "(1) Certificate of Deposit/Investment Indebtedness owned by the decedent alone, or decedent and the surviving spouse, or decedent jointly with others; "(2) Certificate of Registration of vehicle/s and other proofs showing the correct value of the same; "(3) Certificate of Stocks; "(4) Proof of valuation of shares of stock at the time of death; or "(5) Proof of valuation of other types of personal property. "(D) Other requirements, if applicable: "(1) If the person transacting/processing the transfer is the authorized representative, duly notarized original Special Power of Attorney (SPA) and/or, if one of the heirs is designated as executor/administrator, sworn statement; "(2) If the document is executed abroad, certification from the Philippine Consulate or Apostille; or "(3) If zonal value cannot be readily determined from the documents submitted, location plan/vicinity map. "In the absence of any of the documents required above, the Commissioner of Internal Revenue may request for alternative documents, as may be deemed appropriate. "The application for payment of estate taxes shall be a distinct and separate process from the application for transfer of properties: Provided, however, That the proof of settlement of the estate, whether judicial or extrajudicial, shall only be required by the BIR for the issuance of the Electronic Certificate Authorizing Registration (ECAR) for the transfer of properties, and not for purposes of filing and payment of the estate taxes. "xxx."

SEC. 3. Section 8 of the same Act, as amended, is hereby further amended

to read as follows: "Sec. 8. Immunities and Privileges. - Estates covered by the Estate Tax Amnesty, which have fully complied with all the conditions set forth in this Act, including the COMPLETE payment of the estate amnesty tax shall be immune from the payment of all estate taxes, as well as any increments and additions thereto, arising from the failure to pay any and all estate taxes for the period ending [May 31, 2022] DECEMBER 31, 2024 and prior years, and from all appurtenant civil, criminal, and administrative cases and penalties under the National Internal Revenue Code of 1997, as amended.

SEC. 4. Payment by Installment. - Payment by installment shall be allowed

within two (2) years from the statutory date for its payment without civil penalty and interest.

SEC. 5. Implementing Rules and Regulations. - Within thirty (30) days

from its effectivity, the Secretary of Finance shall, in coordination with the Commissioner of Internal Revenue, issue the necessary rules and regulations for the effective implementation of this Act. Failure to promulgate the rules and regulations shall not prevent the implementation of this Act upon its effectivity.

SEC. 6. Separability Clause. - If any provision of this Act is declared

unconstitutional, the remainder thereof not otherwise affected shall remain in full force and effect.

SEC. 7. Repealing Clause. - All laws, presidential decrees, executive

orders, letters of instruction, proclamations, or administrative orders, rules or regulations that are inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 8. Effectivity. - This Act shall take effect fifteen (15) days following

its publication in the Official Gazette or in a newspaper of general circulation. Approved,