Tax Notes: Amendments on extension of estate tax amnesty deadline

Tax Notes: Amendments on extension of estate tax amnesty deadline

The Bureau of Internal Revenue issued Revenue Regulation 10-2023 on Sept. 8, 2023, implementing the extension of period for availing the Estate Tax Amnesty as prescribed by Republic Act (RA) 11956. The regulation amends certain provisions founded on Revenue Regulation 6-2019, also known as the “Tax Amnesty Act”.

The recently promulgated regulation covers decedents who died on or before May 31, 2022, regardless of whether or not their estate was assessed, and whose estate taxes remained unpaid or have accrued as of May 31, 2022.

The estate tax amnesty rate remains to be six percent based on the total net estate of the decedent at the time of death. Taxpayers have the option to file and pay the Estate Tax Amnesty Return (Etar) electronically or manually from June 15, 2023 until June 14, 2025, with any authorized agent bank, through remittance to any Revenue District Office (RDO), or authorized tax software provider as defined in the Revenue Memorandum Order (RMO) 8-2019.

Furthermore, taxpayers are allowed to pay in installments within two years from the statutory date of payment without incurring civil penalties and interest.

The following mandatory documents, along with the duly accomplished and sworn Etar and the Acceptance Payment Form (BIR Form 0621-EA) are to be submitted in triplicate copies:

A Certified true copy of the Death Certificate, or if not available, the certificate of no record of death from the Philippine Statistics Authority together with any valid secondary evidence;

Taxpayer’s Identification Number (TIN) of the decedent and heir(s);

Notarized promissory note for “claims against the estate” arising from contract or loan (if applicable);

Proof of claim of properties previously taxed (if any);

Proof of claim of properties transferred for public use (if any);

At least one government-issued identification card of the executor, administrator, heir, beneficiary, or representative;

Other documents if the subject properties of the estate are real or personal (if applicable);

Alternative documents at the request of the Commissioner of Internal Revenue if the abovementioned documents are lacking.

RR 10-2023 also amends the issuance of the Electronic Certificate Authorizing Registration (eCAR), wherein it shall only be issued upon the submission of the proof of the estate settlement such as the Extra-Judicial Settlement of Estate and Copy of Court Order. Properties not indicated in the Etar filed will be excluded from the eCAR unless additional estate tax amnesty payments are made within the amnesty period. Failure to do so would subject the properties to additional estate tax together with interest and penalties.

Taxpayers who fully comply with the requirements of the amended estate tax amnesty are granted immunity from paying all estate taxes, including any increments and additions, as well as from civil, criminal, and administrative cases, and penalties due to failure of payment of estate taxes for the period ending May 31, 2022, and the previous years.

Source:

P&A Grant Thornton

Certified Public Accountants

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