Good news for the heirs who still have remaining unsettled estates of their ancestors.
Republic Act No. (RA) 11956, extending the Tax Amnesty Act, has now lapsed into law, in accordance with Article VI Section 27 (1) of the 1987 Philippine Constitution which provides that:
"SECTION 27. (1) Every bill passed by the Congress shall, before it becomes a law, be presented to the President. If he approves the same, he shall sign it; otherwise, he shall veto it and return the same with his objections to the House where it originated, which shall enter the objections at large in its Journal and proceed to reconsider it. If, after such reconsideration, two-thirds of all the Members of such House shall agree to pass the bill, it shall be sent, together with the objections, to the other House by which it shall likewise be reconsidered, and if approved by two-thirds of all the Members of that House, it shall become a law. In all such cases, the votes of each House shall be determined by yeas or nays, and the names of the Members voting for or against shall be entered in its Journal. The President shall communicate his veto of any bill to the House where it originated within thirty days after the date of receipt thereof; otherwise, it shall become a law as if he had signed it."
The law shall take effect fifteen (15) days after its publication in the Official Gazette or in two (2) papers of general circulation.
Once this law takes effect, the amnesty shall cover the estates of decedents who died on or before 31 May 2022, with or without assessments, and whose estates have remained unpaid. Heirs who are qualified to avail the estate tax amnesty should submit a Sworn Estate Tax Return, together with the required documents until 14 June 2025.
What are the immunities and privileges under the Tax Amnesty Act?
Under the Act, covered Estates that were able to fully comply with the conditions set forth in the law, including the payment of the estate amnesty tax shall be immuned 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 relevant civil, criminal, and administrative cases and penalties under the National Internal Revenue Code of 1997, as amended.
Can the heirs pay in installment?
Yes, heirs can pay in installment. Payment by installment shall be allowed within two (2) years from the statutory date of its payment without civil penalty and interest.
We highly encourage our readers to avail of the privileges under the Tax Amnesty Act, as it will greatly unburden you of the possible penalties, interest, and charges, including civil, criminal, and administrative penalties that may be ordinarily imposed without the Tax Amnesty Act.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
