A RECENT news story reports that a bill aimed at extending the estate tax amnesty deadline in the Philippines has been officially enacted into law.
Under this new legislation, Filipinos will have an extra two-year period, until June 2025, to take advantage of the estate tax amnesty.
According to Cagayan de Oro 2nd District Rep. Rufus Rodriguez, one of the bill's main authors, Republic Act 11956 (RA 11956) prolongs the duration for availing the estate tax amnesty by an additional two years.
The original application deadline of June 14, 2023, has now been moved to June 14, 2025.
RA 11956 offers amnesty coverage to individuals who passed away on or before May 31, 2022, but were not able to avail the previous estate tax amnesty provided under Republic Act 11213, which originally stated the coverage until December 31, 2017.
Rodriguez highlighted the significance of the law, emphasizing that it would enable the government to generate more revenue and enhance tax compliance.
Furthermore, approximating figures previously put forth by Representative Joey Salceda, it is expected that around 920,000 Filipino families will benefit from this extension of the estate tax amnesty.
The law also introduces alternative methods for individuals to avail of the amnesty program, allowing them to file estate tax returns either electronically or manually, according to Rufus.
"Taxes can be settled through authorized agent banks, revenue district offices, or authorized tax software providers," he said.
Additionally, the law streamlines the documentary requirements that must be submitted to the Bureau of Internal Revenue (BIR), aiming to facilitate the process of filing tax returns.
It also provides the option for outstanding liabilities to be paid in two-year installments, without incurring any civil penalties or interest.
Estate tax refers to a tax imposed on the privilege of individuals who have passed away to transfer their assets, ensuring a fair distribution among rightful inheritors and recipients.
With this new law, Rodriguez said the opportunity to avail the estate tax amnesty has been extended, granting individuals more time to comply with their tax obligations and reduce potential financial burdens.
