Gov’t seeks more time for families to settle inheritance taxes
THE Department of Finance (DOF) is pushing for a four-year extension of the estate tax amnesty, saying the move will help families settle long-pending obligations and bring idle inherited assets back into productive use.
The DOF expressed full support for House Bill (HB) 6614, which seeks to extend the amnesty period until Dec. 31, 2028, giving heirs more time to clear tax liabilities and formalize property transfers.
“This will maximize the use of idle assets and boost productivity,” Finance Secretary Frederick Go said in a statement.
The estate tax, imposed under the National Internal Revenue Code (NIRC) is a one-time levy required to legally transfer a deceased person’s assets to their heirs. Many families have been unable to complete the process due to financial and documentary constraints, leaving inherited properties locked from sale or development.
The proposed extension will cover estates of individuals who died on or before May 31, 2022. The measure also includes safeguards to prevent misuse, requiring applicants to meet documentary rules and pay the amnesty tax no later than the 2028 deadline.
To improve accessibility, the bill allows installment payments of the amnesty tax over one year from the issuance of the Acceptance Payment Form. Failure to comply with the requirements will subject estates to penalties and surcharges under the NIRC.
Estate tax abolition
Meanwhile, a lawmaker from Cebu filed a bill seeking to abolish the Philippines’ estate tax, arguing that the levy has long imposed a heavy financial and administrative burden on grieving families and has forced many to liquidate inherited assets.
HB 6535, or the Estate Tax Abolition Act of 2025, filed by Cebu Rep. Rachel Marguerite “Cutie” del Mar, aims to repeal all provisions of the National Internal Revenue Code, as amended by the Train law, that impose taxes on the transfer of a deceased person’s estate.
Del Mar said the estate tax, while a revenue source for the government, often becomes “a significant financial burden” on families already coping with the loss of a loved one. She noted that heirs frequently face large tax bills that can only be settled by selling family businesses, homes or savings accumulated over generations.
The bill’s explanatory note argues that abolishing the estate tax would allow Filipino families to retain and reinvest assets instead of diverting resources to tax payments. It also seeks to simplify compliance by reducing bureaucratic steps for heirs and the Bureau of Internal Revenue.
Del Mar said eliminating the tax could promote intergenerational financial stability by helping family-owned enterprises endure and by supporting long-term economic growth.
“By eliminating the estate tax, we alleviate unnecessary financial hardship on families during a time of mourning, while promoting a more equitable and efficient fiscal system,” she said.
The lawmaker urged the immediate passage of the measure, which comes amid broader discussions on tax reform and efforts to ease compliance for taxpayers. / PNA/ KOC