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The Philippine Tax Whiz answers taxpayer questions in relation to basic succession and their corresponding estate taxes in light of the Estate Tax Amnesty program in RA 11956 whose deadline was extended to June 14, 2025
What are the documentary requirements to avail for Estate Tax Amnesty (ETA)?
The general requirements for Estate Tax Amnesty, and are part of the submission of the Estate Tax Return (ETAR) are the following:
- Certified and true copy of the death certificate
- Taxpayer Identification Numbers (TIN) for both decedent and heirs
- Any claims against the estate (promissory notes for loans) if applicable
- Proof of properties previously taxed
- Proof of transfer for public use
- Valid government IDs of the executor/administrator or heirs
For any real properties, you will need the following:
- Certified true copies of all title certificates owned by the decedent
- Copies of the property’s respective tax declaration at the time of death (including improvement) including if there were improvements at the time of death
- Certificate of No Improvement issued by the Assessor’s Office at the time of death (if applicable)
For other personal properties, have the following on hand:
- Certificates of deposit/investment/indebtedness owned by the decedent (solo or with someone else),
- Vehicle registration certificates for any owned vehicles
- Certificate of stocks owned, if any, and valuation proof for shares and other types of personal property at the time of death
Kindly take note if you are doing this process under an authorized representative, they need to have a Special Power of Attorney (SPA). If the documents are from abroad, they will need a certification from the Philippine Consulate or Apostille of that country. Also, if the zonal value is not available, location plan or vicinity map is necessary.
I want to avail of the current Estate Tax Amnesty (ETA), and I fit the requirements to fall under the program. What are the procedures I have to consider to avail it?
The infographic below highlights the steps needed for availing the BIR’s Estate Tax Amnesty program.
With regards to payment, installment payments may be allowed within two years from the statutory date of its payment without civil penalties and interest, while the Certificate of Availment of Estate Tax Amnesty will be issued by the concerned RDO within 15 days of from the receipt and filing of your ETAR.
What if I have undeclared properties or didn’t fully disclose my assets in the ETAR? What about properties subject to taxable donations or sales?
In cases where the estate has properties which were not declared in the last ETAR, the legal heirs/executors/administrators can file a new ETAR or an amended ETAR, whichever is applicable, and pay the corresponding estate amnesty tax if filed no later than June 14, 2025. Beyond this date, any undeclared properties are subject to the 6% estate tax, including interests and penalties due.
For properties that are subject to taxable donations or sales, these will be assessed of the corresponding taxes (whether donor’s taxes, capital gains, etc.) at the time of donation/sale including penalties, if applicable. – Rappler.com
The information provided in the article above is for general knowledge and information. We’re always happy to hear from you! If you want to know how these regulations affect your business, CONSULT ACG or email us at [email protected].
