Further Extending the Period of Availment of Estate Tax Amnesty

Senate Office of tie foretary TWENTIETH CONGRESS OF THE 26 FEB 18 P2:34 REPUBLIC OF THE PHILIPPINES First Regular Session RECEIVED BY: SENATE S. No. 1866 Introduced by Senator Raffy T. Tulfo AN ACT FURTHER EXTENDING THE PERIOD OF AVAILMENT OF ESTATE TAX AMNESTY, AMENDING FOR THE PURPOSE SECTIONS 4, 6, AND 8 OF REPUBLIC ACT NO. 11213, OTHERWISE KNOWN AS THE "TAX AMNESTY ACT" AS AMENDED EXPLANATORY NOTE Under the Tax Reform for Acceleration and Inclusion or TRAIN Law, the Philippine estate tax is imposed at 6% of the net estate of a deceased person. At the same time, compliance remains a challenge for heirs. Thus, the Estate Tax Amnesty program under Republic Act No. 11213 was introduced to help Filipino families settle unpaid estate taxes by reducing penalties and interest. However, many taxpayers were unable to meet the original May 31, 2022 deadline due to lack of awareness and the difficulties involved in completing estate settlement requirements. In 2024, more than 52,000 taxpayers took advantage of the amnesty program. It was reported that the total estate tax collection stood at Php6.6 billion, of which collections from the estate tax amnesty accounted for 40.5% or Php2.7 billion. 1 This extension is meant to help families and estate administrators complete the transfer of inherited properties that have been delayed due to unsettled estate tax liabilities. Accordingly, Filipino families who have inherited property but cannot afford the compounded tax obligations are the primary beneficiaries of this bill. Further, this I "DOF backs bill extending estate tax amnesty to boost revenue, ease burden, Retrieved from: hts://mo.come /2025/1209 do-backeilleedie bestate a an estein, Deserven 9, 2035

measure demonstrates the government's commitment to providing taxpayers with reasonable opportunities to comply with their obligations, particularly amid economic challenges that continue to affect estate settlement procedures nationwide, while also helping boost government revenue. In view of the foregoing, immediate approval of this measure is earnestly sought. RANT TUES

Senate Offier of the Sectary TWENTIETH CONGRESS OF THE 26 FEB 18 P2:34 REPUBLIC OF THE PHILIPPINES ) First Regular Session ) RECEIVED BY SENATE S. No. 1866 Introduced by Senator Raffy T. Tulfo AN ACT FURTHER EXTENDING THE PERIOD OF AVAILMENT OF ESTATE TAX AMNESTY, AMENDING FOR THE PURPOSE SECTIONS 4, 6, AND 8 OF REPUBLIC ACT NO. 11213, OTHERWISE KNOWN AS THE "TAX AMNESTY ACT" AS AMENDED Be it enacted by the Senate and House of Representatives of the Philippines in Congress Assembled:

Section 1. Section 4 of the 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 4 hereinafter called Estate Tax Amnesty, which shall cover the estate of decedents who 5 died on or before [May 31, 2022] DECEMBER 31, 2024, with or without assessments 6 duly issued therefor, whose estate taxes have remained unpaid or have accrued as of 7 [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 11, 2025] DECEMBER 31, 2028, file, either electronically or manually, with any authorized agent bank, Revenue District

1 Office through Revenue Collection Officer, or authorized tax software provider, a sworn 2 Estate Tax Amnesty Return, in such forms as may be prescribed in the Implementing Rules and Regulations. The payment of the amnesty tax shall be made, either electronically or manually, at the time the Return is filed with any authorized agent bank, Revenue District Office through the 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, 9 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: "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. "xxx."

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:

1 Provided, that the minimum initial payment shall be at least twenty-five percent (25%) of the total amount due.

Sec. 5. Implementing Rules and Regulations. - Within thirty (30) days from its

4 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

9 or invalid, the other provisions not affected thereby shall remain in full force and effect.

Sec. 7. Repealing Clause. - all laws, orders, rules and regulations which are

inconsistent with the provisions of this Act are hereby repealed or amended accordingly.

Sec. 8 Effectivity. - This Act shall take effect fifteen (15) days after its publication in

the Official Gazette or in two (2) newspapers of general circulation. Approved,