Metro Manila – Heirs of those who died with outstanding estate tax liabilities may find some relief in the latest issuance of the Bureau of Internal Revenue.
The BIR on Friday released Revenue Regulation No. 6-2019, signed by Finance Secretary Carlos Dominguez, which cuts the amount to be paid by heirs of those who died before December 31, 2017 to settle estate tax liabilities.
“An estate tax amnesty rate of six percent shall be imposed on each decedent’s total net taxable estate at the time of death without penalties at every stage of transfer of property… Provided, that the minimum estate amnesty tax for the transfer of the estate of each decedent shall be ₱5,000,” the regulation read.
Legal heirs have up to two years to settle estate tax liabilities, starting June 15, 2019, when this issuance takes effect.
To avail of the amnesty, heirs must sign the proper forms and submit them to the BIR Revenue District Office in the deceased’s last residence. Heirs who are not residing in the Philippines may file at the South Quezon City RDO.
The amnesty also covers undeclared properties, and those that are subject to taxable donation or sale.
Meanwhile, liabilities due to delinquencies, and properties that fall under the jurisdiction of the Presidential Commission of Good Governance, involved in unlawfully acquired wealth, involved in money laundering, involved in tax evasion, and other related crimes are not covered by the amnesty regulation.
The Department of Finance expects to collect P6.28 billion previously unpaid taxes from this amnesty.
It will also allow heirs to tap into these properties for productive uses previously legally barred to them due to tax liabilities. (CNN Philippines)
