Republic Act No. 11956: Further Amending Republic Act No. 11213 or the Tax Amnesty Act

Following the expiration of the initially extended deadline for availing of the Estate Tax Amnesty under Republic Act (“R.A.”) No. 11569, a subsequent extension was introduced through the enactment of R.A. No. 11956. 

Under R.A. No. 11956, taxpayers may avail themselves of the Estate Tax Amnesty until 14 June 2025. Additionally, the Estate Tax Amnesty now covers the estate of decedents who died on or before 31 May 2022.

The executor or administrator of the estate, or in the absence thereof, the legal heirs, transferees or beneficiaries, who wish to avail of the Estate Tax Amnesty shall, within 15 June 2023 until 14 June 2025, file, either electronically or manually, with any Authorized Agent Bank (“AAB”), Revenue District Office (“RDO”) through the Revenue Collection Officer (“RCO”), or authorized tax software provider, a sworn Estate Tax Amnesty Return (“Return”). 

The payment of the amnesty tax shall be made at the time the Return is filed, provided that the appropriate RDO shall issue and endorse an acceptance payment form for the AAB, RCO or authorized tax software, as the case may. Notably, payment by installment is now allowed within 2 years from the statutory date for its payment without civil penalty and interest.

Furthermore, R.A. No. 11956 provides that the requirements to be submitted by the filers to the Bureau of Internal Revenue (“BIR”) shall be limited to the following:

Mandatory requirements:

1. Certified true copy of the Death Certificate, or if not available, the certificate of no record of death from Philippine Statistics Authority and any valid secondary evidence including, but not limited to, those issued by any government agency/office sufficient to establish the fact of death of the decedent;
2. Taxpayer Identification Number;
3. For “claims against the estate” arising from contract of loan, notarized promissory note, if applicable;
4. Proof of the claimed “property previously taxed,” if any;
5. Proof of the claimed “transfer for public use,” if any; and
6. At least 1 government-issued identification card 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 real property/ies, if any:

1. Certified true copy/ies of the transfer/original condominium certificate/s of title of real property/ies;
2. Certified true copy/ies of the tax declaration of real property/ies, if untitled, including the improvements at the time of death or the succeeding available tax declaration issued nearest to the time of death of the decedent, if none is available at the time of death; and
3. Where declared property/ies has/have no improvement, Certificate of No Improvement issued by the assessor’s office at the time of death of the decedent. 

For personal property/ies, if applicable:

1. Certificate of Deposit/Investment/Indebtedness owned by the decedent alone, or decedent and the surviving spouse, or decedent jointly with others;
2. Certificate of Registration of vehicle/s and other proofs showing the correct value of the same;
3. Certificate of Stocks;
4. Proof of valuation of shares of stock at the time of death; or
5. Proof of valuation of other types of personal property.

Other requirements, if applicable:

1. If the person transacting/processing the transfer is the authorized representative, duly notarized original Special Power of Attorney and/or, if one of the heirs is designated as executor/administrator, sworn statement;
2. If the document is executed abroad, certification from the Philippine Consulate or Apostille; or 
3. If zonal value cannot be readily determined from the documents submitted, location plan/vicinity map.

If any of the aforementioned documents are unavailable, the Commissioner of Internal Revenue may request alternative documents, if deemed appropriate. 

Lastly, R.A. No. 11956 recognizes that the application for payment of estate taxes is a distinct and separate process from the application for transfer of properties. Thus, proof of settlement of the estate, whether judicial or extrajudicial, shall only be required by the BIR for the issuance of the Electronic Certificate Authorizing Registration for the transfer of properties, and not for purposes of filing and payment of the estate taxes.