The Department of Finance (DOF) is supporting House Bill 6614, extending the Estate Tax Amnesty until December 31, 2028 to give more Filipino families the opportunity to settle obligations on inherited properties.
“This will maximize the use of idle assets and boost productivity,” said Finance Secretary Frederick D. Go in a news release.
Imposed under the National Internal Revenue Code (NIRC), the estate tax is a one-time payment for the legal transfer of ownership of a deceased person’s assets to their lawful heirs and beneficiaries.
By providing an Estate Tax Amnesty, the DOF aims to grant relief to families unable to formalize inheritance because of financial and other constraints.
The new Estate Tax Amnesty proposal covers estates of descendants who passed on or before May 31, 2022, and includes safeguards to prevent potential misuse of the measure.
To promote fairness and minimize discretion in the grant of estate tax amnesty, applicants must comply with the documentary requirements and payment of the amnesty tax by December 31, 2028.
The proposal also allows installment payment of the amnesty tax spread over one year from the issuance of the Acceptance Payment Form. Noncompliance with the requirements will subject the estate to the penalties and surcharges imposed under the NIRC.