President Rodrigo Duterte on Wednesday, June 30, signed into law a measure extending the period of estate tax amnesty for two years.
Republic Act No. 11213 or the Tax Amnesty Act of 2019 was amended by Republic Act No. 11569, extending the period to accept applications up to June 14, 2023, from the original June 14, 2021.
The law covers the estate of decedents who died on or before December 31, 2017, whose estate taxes have remained unpaid or have accrued as of December 31, 2017, with or without assessment.
From a net estate tax of 20%, those who will apply for the amnesty will enjoy a reduced rate of 6% of the value determined at the time of death of the property owner.
The amended law further notes that availing of the amnesty does not imply any admission of criminal, civil, or administrative liability on the part of the availing estate.
The extension comes as COVID-19 lockdown restrictions hinder people from filing tax returns and settling obligations.
The law, however, does not apply to properties that are subject of cases on ill-gotten wealth, plunder, or money laundering.
The government initially aimed to generate some P6 billion from the program, but has failed to raise this amount due to low turnout. – Rappler.com