Extension of estate tax amnesty lapses into law

The bill expanding the coverage of the estate tax amnesty and extending the period of availment by another two years has lapsed into law.

Republic Act (RA) No. 11956 extends the availment period for the estate tax amnesty for another two years (June 15, 2023 to June 14, 2025).

The new law also expands the amnesty’s coverage to include the estates of those who died on or before May 31, 2022.

The previous law provided for a two-year amnesty that expired on June 14, 2023, and covered the estates of people who died on or before December 31, 2017.

A copy of the Estate Tax Amnesty Extension Act showed it was not signed by President Ferdinand R. Marcos, Jr., and that it had lapsed into law on Aug. 5. An approved bill becomes a law if the President does not act on it 30 days after it is submitted to Malacañang.

House Ways and Means Committee Chairman and Albay Rep. Jose Ma. Clemente “Joey” S. Salceda said the estate tax amnesty extension would benefit as many as one million Filipino families with unsettled estates.

“It will benefit some 920,000 Filipino families who have unsettled estates, many of whom include the 610,054 agrarian reform beneficiaries recently released from debt by President Marcos’ New Agrarian Emancipation Act,” he said in a statement.

The new law also allows payment of the estate tax in installments within two years from the statutory day for the payment without civil penalty or interest.

“It has many improvements compared to the previous Estate Tax Amnesty, especially as it makes the administrative requirements for filing much easier to comply with,” Mr. Salceda said.

The law allows taxpayers to pay the amnesty tax either manually or electronically through any authorized agent bank, revenue district office or an authorized tax software provider.

It also limited the number of documents required for filing the application for tax amnesty.

The law also clarified that the proof of settlement is only required for the issuance of Electronic Certificate Authorizing Registration for transfer of properties, not for the filing and payment of estate tax.

Under the law, the implementing rules and regulations should be released within 30 days, not 60 days as previously required.

The estate tax amnesty initially ran from June 15, 2019 to June 14, 2021 under RA 11213. It was extended for two years from June 15, 2021 to June 14, 2023. — Beatriz Marie D. Cruz