Published on May 11th, 2022

Last year, we announced in The Legal Pinoy radio edition, the much anticipated Tax Amnesty Act then in the works in the Philippines.  This was welcome news that will stand to benefit many Filipinos and Filipino-Americans in Hawaii who have inheritance or properties in the Philippines with titles that have not been transferred to their names, mainly because of dread of steep estate taxes, penalties and interests considering the years that have gone by coupled with inaction .  For our readers who find themselves in this situation, whose inheritance or properties in the Philippines may still be in the name of their great-grandparents , grandparents or parents, this good news is for you.

On February 14, 2019, President Rodrigo Roa Duterte signed  into law Republic Act No. 11213 or  the Tax Amnesty Act of 2019.   On April 5, 2019, the Bureau of Internal Revenue issued the revenue regulations implementing the provisions on the tax amnesty on delinquencies which took effect on April 24, 2019.

The Tax Amnesty Act provides a one time opportunity to settle estate tax obligations through an estate tax amnesty program that provides reasonable tax relief to estates with deficiency estate tax.   The Estate Tax Amnesty shall cover the estate of decedents who died on or before December  31, 2017 whose estate taxes have remained unpaid of have accrued as of December 31, 2017, whether or not an assessment has been made.

Those entitled to the amnesty  may enjoy immunities and privileges and pay an estate amnesty tax at the flat rate of 6% based on the decedent’s total net estate at the time of death.

The executor or administrator of the estate, or if there is none appointed, the legal heirs, transferees or beneficiaries, shall file within two (2) two years from the effectivity of the Implementing Rules and Regulations with the Revenue District Office of the Bureau of Internal Revenue which has jurisdiction over the last residence of the decedent.

Procedures for filing for non-resident decedents and for estates that have properties still in the name of another decedent or donor are provided in the Implementing Rules and Regulations.

The availment of the Estate Tax Amnesty does not imply any admission of criminal, civil or administrative liability on the part of the applicant.  Estates covered by the amnesty which have fully complied with all the conditions including payment of the estate amnesty act shall be immune from the payment of all estate taxes as well as penalties and interests arising from failure to pay for tax year 2017and previous years and from all criminal, civil and administrative cases under the law.

There are exceptions that apply.  The Estate Tax Amnesty shall not extend to estate tax cases which shall have become final and executory and properties involved in cases pending in appropriate courts (a) falling under  the jurisdiction of the Presidential Commission on Good Government, (b) involving unexplained or unlawfully acquired wealth, (c) involving violations under the Anti-Money Laundering Act, as amended,  (d) involving tax evasion and other criminal offenses under the National Internal Revenue Code of 1997, as amended, and ( e )  involving felonies of frauds, illegal exactions and transactions and malversation of public funds and property  under the Revised Penal Code.

Because an amnesty is only available for a specific period of time, property owners who stand to benefit from this tax relief are urged to act now so you can transfer the properties in your name and enjoy the fruits of ownership with your property registered in your name.  As registered property owner, you can sell, mortgage, donate or build on your asset.  What will you do with your property?

For actual cases or controversy, consult a qualified attorney.

Original news: http://www.filamcourier.com/estate-tax-amnesty-your-inheritance-and-properties-in-the-philippines/