BIR Amends Regulations on Estate Tax Amnesty

On 8 September 2023, the Bureau of Internal Revenue (“BIR”) issued Revenue Regulations No. 10-2023 (“RR No. 10-2023”) on Amending Certain Provisions of Revenue Regulations No. 6-2019, as Amended, to Implement the Extension on the Period of Availment of the Estate Tax Amnesty Pursuant to Republic Act No. 11956, Further Amending RA No. 11213, Otherwise Known as the “Tax Amnesty Act.”

RR No. 10-2023 provides that the estate tax amnesty shall cover the estate of decedents who died on or before 31 May 2022, with or without assessments duly issued therefor, whose estate taxes have remained unpaid or have accrued as of 31 May 2022.

To avail of the estate tax amnesty, executors or administrators, legal heirs, transferees, or beneficiaries can file and pay the Estate Tax Amnesty Return (“ETAR”), known as BIR Form No. 2118-EA, either electronically or manually. This option is available from 15 June 2023 to 14 June 2025 through an authorized agent bank, a revenue collection officer at any Revenue District Office (“RDO”), or an authorized tax software provider. 

The duly accomplished and sworn ETAR, together with the Acceptance Payment Form (APF-BIR Form No. 0621-EA) (“APF”) (Annex C) and the complete documents shall be presented to the concerned RDO.

Within 5 working days from the receipt of complete documents, the concerned RDO shall either endorse the APF for payment of the estate amnesty tax with the Authorized Agent Banks (“AABs”), Revenue Collection Officers (“RCOs”), or authorized tax software provider or shall notify the taxpayer in case there is any deficiency in the application. Only the duly endorsed APF shall be presented to and received by the AAB, RCO or authorized tax software provider.

Proof of settlement of the estate, whether judicial or extrajudicial, need not accompany the ETAR if it is not yet available at the time of its filing and payment of taxes, but no electronic Certificate Authorizing Registration (“eCAR”) shall be issued unless such proof is presented and submitted to the concerned RDO.

After payment, the duly accomplished and sworn ETAR and 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 15 June 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. Installment payment shall be allowed within 2 years from the statutory date of its payment without civil penalty and interest.

The BIR also clarified that only one eCAR shall be issued per real property, including the improvements, if any, covered by Original Certificate of Title/Transfer Certificate of Title/Condominium Certificate of Title or Tax Declaration for untitled properties. For personal properties included in the estate, a separate eCAR shall be issued.

Finally, estates covered by estate tax amnesty, which have fully complied with all the conditions set forth hereof, including the payment of estate tax amnesty, shall be immune from the payment of all estate taxes as well as any increments and additions thereto, arising from the failure to pay any and all estate taxes for the period ending 31 May 2022 and prior years, and from all appurtenant civil, criminal and administrative cases, and penalties under the 1997 Tax Code, as amended.