[Ask the Tax Whiz] Will the estate tax amnesty be extended?

Republic Act (RA) No. 11213 or the Tax Amnesty Act of 2019 granted an estate tax amnesty for two years. It will expire on June 14, 2021, unless extended by law.

Is it true that the estate tax amnesty may be extended?

Yes. The Senate already approved Senate Bill No. 2208 which aims to amend RA 11213, extending the deadline from June 14, 2021, to June 14, 2023.

Although the House of Representatives earlier passed a counterpart measure in September 2020, its proposed extension is only until December 31, 2022. If the House adopts the Senate version of the bill, that would expedite the process of having it enacted into law before the original deadline of June 14, 2021.

Even if we want to avail of estate tax amnesty, we don’t have enough money. Can we withdraw from the bank and use the cash left by our deceased parents? Can we pay in installments?

Based on Revenue Memorandum Circular (RMC) No. 68-2019, the Bureau of Internal Revenue (BIR) commissioner or the revenue district officer may, upon written request of the taxpayer, issue a letter allowing partial or total withdrawal of the cash equivalent to the estate tax amnesty due without subjecting it to the final withholding tax.

Unfortunately, however, installment payment is not allowed.

I am still confused about how to avail of estate tax amnesty. The process seems overwhelming. Are there resources or webinars available explaining the provisions or to answer our tax questions?

Yes. The BIR commissioner issued RMC Nos. 68-2019 and 102-2019 to clarify issues regarding the implementation of estate tax amnesty. Visit www.bir.gov.ph to access or download the RMCs.

You may also watch the replay of BIR in Action Live, where the bureau answered the frequently asked questions about estate tax amnesty.

Join the Elite Taxpayer Circle (ETC) to attend exclusive webinars and stay updated.

Finally, download the TaxWhizPH mobile app for free and use the unlichat feature to ask your tax questions anytime, anywhere.

Download the app here:

• Android
• iOS

– Rappler.com

Mon Abrea, CPA, MBA, is the co-chair of the Paying Taxes-EODB Task Force. With the TaxWhizPH mobile app as his brainchild, he was recognized as one of the Outstanding Young Persons of the World, an Asia CEO Young Leader, and one of the Ten Outstanding Young Men of the Philippines because of his tax advocacy and expertise. Currently, he is the chairman and CEO of the Asian Consulting Group and trustee of the Center for Strategic Reforms of the 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 him at mon@acg.ph and download the TaxWhizPH app for free if you have tax questions.