The Bureau of Internal Revenue (BIR) has announced they will provide an extension for estate tax amnesty in the Philippines. It means taxpayers who have yet to settle their estate taxes will have more time. The extension period will run from August 15, 2021, until June 14, 2023. It is good news for those behind on paying their taxes, as it gives them more time to get their affairs in order and avoid penalties. For those unsure what estate tax is or how it works, read on to find out more about this critical topic.
What is Estate Tax Amnesty?
The Estate Tax Amnesty program allows taxpayers to pay their estate taxes without worrying about penalties or interest. It means those who paid late or couldn’t declare their estate in time can still comply with all the requirements and pay their estate taxes without additional charges.
How To Avail the Estate Tax Amnesty Extension?
The estate may enjoy the immunities and privileges of the Estate Tax Amnesty and pay an estate amnesty tax at six percent (6%) based on the decedent’s total net estate at the time of death.
To avail of this estate tax amnesty, the following must consider:
- You filed the Estate tax return with the Bureau of Internal Revenue (BIR).
- An estate tax rate of six percent (6%) shall be based on the undeclared net estate of the decedents.
- Total allowable deductions exceeded the value of the gross estate and paid a minimum estate tax amnesty of five thousand pesos only (5,000.00)
How To File Estate Tax Amnesty in the Philippines?
Here are the procedures for filing ETA in the Philippines:
- It must be filed by the administrator, heirs, or beneficiaries with the Bureau of Internal Revenue (BIR) or RDO.
- Present the duly accomplished ETA and documents with the BIR or concerned RDO for endorsement of the Acceptance Payment Form (APF) before paying the amount due.
- Submit the ETAR, APF, and proof of payment to the BIR to get the Certificate of availment of the Estate Tax Amnesty. This certificate will be issued within fifteen days after the BIR receives your submission.
What are the Required Documents?
For the issuance of the certificate of availment, you will need the original copy and two copies of each document:
- A valid certified copy of the Death Certificate (DC)
- Taxpayer Identification Number (TIN) of decedent and heir/s
- Certification of the Barangay Captain for the last residence of the decedent and claimed Family Home if any
- For “Claims Against the Estate” arising from Contract of Loan, Notarized Promissory Note, if applicable
- Proof of the claimed “Property Previously Taxed,” if any
- Evidence of the claimed “Transfer for Public Use,” if any
- At least one (1) valid government ID of the executor/administrator of the estate, or if there is no executor or administrator appointed, the heirs, transferees, beneficiaries, or authorized representative
- The person transacting/processing the transfer is the authorized representative, duly Notarized Original Special Power of Attorney (SPA), or if one of the heirs is designated as executor/ administrator, Sworn Statement
- The document is executed abroad, Certification from the Philippine Consulate or Apostille
- You cannot readily determine a zonal value from the documents submitted, Location Plan/Vicinity map
The Estate Tax Amnesty Act is an excellent opportunity to handle estate tax obligations while avoiding penalties and interest. With this extension, executors, administrators, legal heirs, or beneficiaries have more time to settle their estate taxes and comply with the requirements. To avail of this program, you only need documents and the applicable rate payment. Don’t miss out on your chance to enjoy the benefits that come with this program!
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