The Estate Tax Amnesty under Republic Act No. 11956 has been extended until June 14, 2025, covering estates of decedents who died on or before May 31, 2022. This program allows families to settle unpaid estate taxes at a flat 6% rate without penalties or interest charges.
Key Benefits of Estate Tax Amnesty
The amnesty imposes a flat 6% estate tax rate based on the net estate value, eliminating the regular progressive rates of 6% to 20%. More importantly, it waives all accumulated penalties and interest charges that often exceed the original tax liability by several times.
For families with long-standing unpaid estate taxes, this represents substantial savings. From 2019 to March 2023, the government collected ₱7.41 billion from 133,860 beneficiaries who used the amnesty program.
Who Can Apply
The amnesty covers estates of persons who died on or before May 31, 2022, with or without tax assessments, whose estate taxes remained unpaid as of that date. Eligible applicants include:
- Legal heirs and beneficiaries
- Estate executors and administrators
- Transferees of inherited property
- Even third parties who purchased property from heirs can apply for amnesty to clear tax obligations
Application Requirements
The required documents have been simplified and limited to basic requirements including certified death certificates, taxpayer identification numbers of decedent and heirs, and property documentation. Alternative documents may be accepted when primary documents are unavailable.
Payment Options
The law allows installment payments within two years from the filing date without penalties or interest. Applications can be filed electronically or manually through authorized banks, Revenue District Offices, or approved tax software providers.
Professional Assistance
Given the documentation requirements and BIR procedures involved, many families benefit from professional guidance to ensure proper compliance and optimal results. The amnesty process involves property valuation, document preparation, and coordination with tax authorities.
Our law firm assists clients with estate tax amnesty applications, helping families navigate the requirements and complete the process efficiently within the June 14, 2025 deadline.
For consultation regarding your estate tax amnesty options, contact our office to discuss your specific situation.