What is the coverage of estate tax amnesty as provided under Republic Act No. 11213 or the Tax Amnesty Act? Are there any exceptions?
Based on Revenue Regulations (RR) No. 6-2019, estate tax amnesty shall cover the estate of a decedent who died on or before December 31, 2017, with or without assessments duly issued, whose estate tax has remained unpaid or accumulated as of December 31, 2017.
Yes, there are exceptions. Estate tax amnesty shall not extend to delinquent estate tax liabilities which have become final and executory and those covered by the tax amnesty on delinquencies, and properties involved in cases pending in court.
My father died on December 31, 2017. He left me our family home in the province with a fair market value of P2 million at the time of his death. My mother passed away after giving birth to me. If no other personal or real properties are left, can I avail of estate tax amnesty? How much am I supposed to pay?
Yes, you can avail of estate tax amnesty. Since your father died on December 31, 2017, his estate is covered. Assuming fair market value of P2 million is higher than zonal, it will be the basis of valuation for the gross estate. The estate tax amnesty rate of 6% will be imposed on the total net taxable estate at the time of death, without penalties.
Gross estate – P2,000,000
Less: family home – (P1,000,000)
standard deduction – (P1,000,000)
Net taxable estate – 0
Estate tax rate – 6%
Estate tax due – 0
Minimum estate amnesty tax – P5,000
After family home and standard deductions, the net taxable estate became zero. As provided in the implementing rules and regulations (IRR), the minimum estate amnesty tax for transfer of the estate of each decedent is P5,000.
If we want to avail of estate tax amnesty, what is the BIR form to be used? What are the documentary requirements we need to prepare?
As provided in the law’s IRR, the estate tax amnesty return (BIR Form 2118-EA) should be filed in triplicate by the executor, administrator, or authorized representative of estates.
Here are the documentary requirements to be prepared (original and two photocopies of each document):
- Certified true copy of the death certificate
- Taxpayer identification number of decedent and heir/s
- Estate tax amnesty return
- Estate tax acceptance payment form, revenue official receipt if paid to RCO
- Affidavit of self-adjudication or deed of extrajudicial settlement of the estate of the decedent, or court decision if the estate has been settled judicially or if there is a last will and testament
- Certification of the barangay captain for the last residence of the decedent and claimed family home, if any
- For claims against the estate arising from contract of loan, notarized promissory note, if applicable
- Proof of the claimed “Property Previously Taxed,” if any
- Proof of the claimed “Transfer for Public Use,” if any
- At least one valid government ID of the executor or administrator of the estate, or if there is no executor or administrator appointed, the heirs, transferees, beneficiaries, or authorized representative
For other documentary requirements, refer to RR No. 6-2019 or email us at email@example.com for tax assistance.
Until when can we file and pay if we want to avail of estate tax amnesty?
The estate tax amnesty return (BIR Form 2118-EA) together with the other documentary requirements should be filed on or before June 14, 2021.
Where should we file? If we have other concerns, is there a mobile app we can use to ask tax questions? How much will it cost us?
Filing must be done at the revenue district office (RDO) having jurisdiction over the last residence of the decedent at the time of death. In case of a non-resident decedent with an executor or administrator in the Philippines, the return should be filed with the RDO where the executor or administrator is registered. If the decedent has no legal residence in the Philippines, the return should be filed with RDO 39, South Quezon City.
You can download the TaxWhizPH mobile app for more information on paying taxes. In fact, the “Ask the Tax Whiz” feature offers unli-chat anytime, anywhere, and it’s free!
Mon Abrea, CPA, MBA, is the co-chair of the Paying Taxes-EODB Task Force, chairman and senior tax advisor of the Asian Consulting Group (ACG), founder of the TaxWhizPH mobile app, and founder of the Center for Strategic Reforms of the Philippines (CSR Philippines) – the advocacy partner of the Bureau of Internal Revenue, Department of Trade and Industry, and Anti-Red Tape Authority on ease of doing business and tax reform. Visit www.acg.ph for more information or email firstname.lastname@example.org for tax inquiries.