BIR to release final estate tax amnesty regulations within next few days
The Bureau of Internal Revenue (BIR) will release within the next few days the final estate tax amnesty regulations to settle the estimated P6.2 billion outstanding tax debts due from the heirs of the decedents all over the country.
Taxpayers are given two years from the effectivity of the finalized guideline to file the Estate Tax Amnesty Return (ETAR), or BIR Form No. 2118-EA in triplicate copies at the revenue district office (RDO) having jurisdiction over the last residence of the deceased.
If the decedent has no legal residence in the country, the return shall be submitted at RDO 39 (South Quezon City).
The 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.
To illustrate, if the original owner of the property died and subsequently his heir also died without paying the estate tax, the surviving heir shall pay both the two cascading six percent amnesty rate.
The rate shall be based on the fair market value of the property at the time of death and shall cover decedent who died on or before December 31, 2017.
The BIR stressed that the privilege will not be extended to delinquent estate tax liabilities which have become final and executory, in which case the tax amnesty on delinquent accounts may be applied.
