The deadline is quickly coming up, and for numerous Filipino households, this might be the final opportunity to address the unresolved legal matters concerning their inherited properties. Under the Estate Tax Amnesty program outlined in Republic Act (RA) 11956—which broadened and prolonged the initial provisions set forth in RA 11213—beneficiaries have until June 14, 2025, to resolve outstanding estate tax liabilities from deceased individuals who expired on or prior to May 31, 2022.
This relief, provided via Revenue Regulations 10-2023 and elaborated upon in Revenue MemorandumCircular 82-2023, introduces an easier, penalty-free method for settling longstanding estate issues faced by numerous families. The government has made it evident that this could very well be the last suchextension.
Through the amnesty program, descendants have the option to pay a consistent 6 percent estate tax calculated according to the net taxable worth of the inheritance at the deceased’s passing—free from penalties, interest, or additional charges. This provision alone could help families shave off hundreds of thousands, possibly even millions of pesos in prospective tax obligations.
A lot of Filipinos acquired land or houses many years back, yet failed to change the title since they could not bear the accumulated fines or were unsure how to begin. Some came into possession of business premises but were unable to utilize these as security for loans owing to missing proof of ownership. This dilemma can now be resolved through the estate tax amnesty which provides a cost-effective and straightforward method to settle titles and make the true value of their assets available.
A major modification in RA 11956 is that it now encompasses deaths occurring on or prior to May 31, 2022, rather than the earlier end date of December 31, 2017. This law applies to both evaluated and unevaluated estates provided the deceased passed away before this new cut-off period.
The Bureau of Internal Revenue (BIR) has implemented a "Pay First, File Afterwards" policy. This enables families to meet the estate tax payment deadlines promptly, even if certain documentation is yet to be completed—an approach designed to avoid rush situations that might lead to missing important due dates.
For availing estate tax amnesty, these documents are generally needed:
- Estate Tax Amnesty Return (BIR Form 2118-EA)
- Certified Copy of the Acceptance Payment Form (APF)
- Certificate of Death
- Tax Identification Numbers (TIN) for both the deceased person and their successors-in-interest
- Evidence showing property valuations based on zonal values or appraisals conducted when they passed away.
- An extrajudicial agreement or judicial decree regarding asset division
- A special power of attorney if someone else files on behalf
The submission can happen either physically at designated Bureau of Internal Revenue locations or electronically using the Electronic Tax Filing and Payment System (eTIS). Payments must then go directly into banks approved as agents or transferred online.
This program isn’t available to everybody. The Estate Tax Amnesty doesn’t apply to the following:
- Outstanding estate taxes already included in another tax amnesty for late payments.
- Properties linked to money laundering, fraud, corruption, or tax avoidance schemes.
- Assets currently being contested by the Presidential Commission on Good Government (PCGG).
- Estates belonging to foreigners holding assets located outside the country.
When estate taxes remain unpaid, it’s actually the heirs—not the departed—who face repercussions. They may find themselves unable to sell or mortgage land, divide property amongst inheritors, or utilize business opportunities effectively. Numerous families endure years without progress, hindered from developing or utilizing inherited plots because their tax obligations haven’t been settled.
This amnesty is a chance to break free.
A contentious part of the estate tax debate involves the significant ₱23-billion estate tax debt of former President Ferdinand Marcos Sr., which was declared final and executory by the Supreme Court back in 1997. It is reported that due to additional charges and penalties, this amount has surged past ₱200 billion.
There continues to be significant public attention on whether this government will apply laws consistently, even when dealing with its own members. The Bureau of Internal Revenue (BIR) mentioned that the Marcos estate might qualify for an amnesty program; however, this would require meeting all necessary legal conditions and ensuring timely payment of taxes. Should this occur, it could establish a strong example—either fostering greater public confidence or leading to increased public opposition.
Ray G. Talimio Jr., serves as the chairperson for the MSME Development Council covering Cagayan de Oro and Misamis Oriental. Additionally, he holds the position of co-chair for the Economic Development Committee within the RDC-X region. Previously, he was both the president and board chairman of the Cagayan de Oro Chamber of Commerce and Industry Foundation, Inc. (Oro Chamber) and continues his involvement at national and local levels with the Philippine Institute of Certified Public Accountants (PICPA). His writings frequently explore topics such as governance, taxation, and public policy under the column title "From the Sidelines."