July 1, 2021

The estate tax amnesty period has been extended until June 2023

President Rodrigo Duterte signed a legislation on Wednesday that extends the availability term of the estate tax amnesty by two years, effective immediately.

Republic Act 11569 modifies Republic Act 11213 (the Estate Amnesty Act) in order to prolong the validity of the estate tax amnesty program until the end of the year 2020.

Regulation 11213 (RA 11213), signed by President Rodrigo Duterte on February 14, 2019, provides taxpayers with a one-time chance to settle their tax obligations via an estate amnesty program that provides fair tax relief to estates that have unpaid estate tax obligations.

A beneficiary or estate administrator has two years, or until June 15, 2021, to take advantage of the estate tax amnesty under Section 6 of RA 11213 to take advantage of the estate tax amnesty.

According to Republic Act 11569, the new deadline for submitting estate tax amnesty reports has been established on June 14, 2023.

RA 11569 stated that “the payment of the amnesty tax shall be made at the time the Return is filed: Provided, however, that for nonresident decedents, the Estate Tax Amnesty Return shall be filed and the corresponding amnesty tax shall be paid at the Revenue District Office No. 39, or any other Revenue District Office as shall be indicated in the Implementing Rules and Regulations.”

Those who take advantage of the estate tax amnesty are exempt from the payment of estate taxes, as well as from civil, criminal, and administrative proceedings and fines.

As of December 31, 2017, the Estate Amnesty Act applies to decedents who died on or before December 31, 2017, with or without valid estate tax assessments issued, and whose estate taxes have remained unpaid or have accrued as of December 31, 2017. The Act applies to decedents whose estate taxes have remained unpaid or have accrued as of December 31, 2017, with or without valid estate tax assessments issued.

A provision of Republic Act 11569 directs the Finance Secretary, in consultation with the Internal Revenue Commissioner, to publish appropriate rules and regulations within 60 days of the new law’s effective date.

The newly-signed legislation takes effect 15 days after it is published in the Official Gazette or in two newspapers of wide circulation, whichever occurs first.

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