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Amendment to the Implementing Rules and Regulations of the Estate Tax Amnesty Act

By: Atty. Xela Leona D. Laqui on September 21,2023

Republic Act (RA) No. 11956 was passed amending RA No. 11213, the Estate Tax Amnesty Act, to extend the period to avail the estate amnesty tax for another two years or until June 14, 2025. Significantly, it also expanded the coverage of the amnesty to cover estates of decedents who died on or before May 31, 2022. RA No. 11213 covered estate of decedents who died on or before December 31, 2017.

Notably, RA No. 11956 expressly enumerates what documents must be submitted to avail of the tax amnesty, while the previous rules did not provide such list. In addition, it allows installment payment of the amnesty tax within two (2) years from due date, without civil penalty and interest. No such provision can be found in the previous laws.

On September 8, 2023, the Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) 10-2023 amending certain provisions of RR No. 6-2019, to implement the provisions of RA No. 11956.

RR No.10-2023 basically reiterate the provisions of RA No. 11956, like enumerating the documents required to be submitted, among others.  It also provides that Estate Tax Amnesty Return (ETAR) or BIR Form No. 2118-EA and payment of estate tax due can be made either electronically or manually with any authorized agent bank, through revenue collection officer of any Revenue District Officer (RDO) or authorized tax software provider as defined in Revenue Memorandum Order (RMO) No 8-2019. The previous rules do not provide for filing and paying electronically.

Further, RR No. 10-2023 provides that after payment, the duly accomplished and sworn ETAR and Acceptance Payment Form (APF) with proof of payment, together with the complete documentary requirements, shall be immediately submitted to the concerned RDO in triplicate copies. Failure to submit the same until June 15, 2025 is tantamount to non-availment of the Estate Tax Amnesty and any payment made may be applied against the total regular estate tax due inclusive of penalties. Previously, submission is until June 15, 2023 only.

RR No. 10-2023 also reiterated the provision in RA No. 11596  that the submission of proof of settlement of the estate, whether judicial or extra-judicial, such as the submission of Affidavit of Self Adjudication or Deed of Extra-Judicial Settlement (EJS) of the Estate of the decedent or court decision/judgement if the estate has been settled judicially or if there is a last will and testament, need not be made at the time of the filing for the application for the amnesty.  They should be submitted though before the electronic Certificate Authorizing Registration (eCAR) can be issued for transfer of properties of the estate.

All the foregoing shows that RA No. 11956, as implemented by RR No. 10-2023, made certain clarifications on submissions to be made and how the estate amnesty shall be availed of. It is expected that these changes and clarifications in the rules will make availment of the estate amnesty easier for taxpayers.

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Xela Leona D. Laqui is an Associate of Mata-Perez, Tamayo & Francisco (MTF Counsel).

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