BIR allows estate tax amnesty payment in installments
Published Jun 26, 2019 04:37 pm
By Jun RamirezÂ
The Bureau of Internal Revenue (BIR) said Wednesday taxpayers availing of the estate tax amnesty may pay the liabilities in installments.
Bureau of Internal Revenue (MANILA BULLETIN)
The cash installments shall be made within two years from the date of the filing of the estate tax return, the BIR stated in Revenue Regulations (RR) No. 8-2019 signed by Finance Secretary Carlos Dominguez III based on the recommendation of Revenue Commissioner Caesar Dulay.
The regulations amended Section 9 of RR 12-2018 which implemented the estate tax amnesty law.
The guideline further advised taxpayers to use the payment form (BIR Form No. 0605), or the "payment form dedicated for the transactions for succeeding installment payments after the filing of the first payment through the estate tax return."
The government has come out with two tax amnesty programs, one for tax debts incurred in 2017 and prior years and another for unpaid estate tax.
The BIR expects to collect some P6 billion in estate taxes from the heirs of decedents.
The law provides taxpayers a one-time opportunity to settle estate tax obligations through the program that will give reasonable tax relief to estate with outstanding estate tax liabilities, according to revenue officials.
The amnesty covers the estate of the deceased who died on or before Dec. 31, 2017 which liabilities remained unpaid.
Taxpayers are given two years from the effectivity of the guideline to file the Estate Tax Amnesty Return (ETAR) through the revenue district office (RDO) having jurisdiction over the last residence of the deceased.
If the decedent has no legal residence in the country, the return shall be submitted at RDO 39 (South Quezon City).
The amnesty rate of six percent shall be imposed on each decedent's total net taxable estate at the time of death, without penalties at every stage of transfer of property.
To illustrate, if the original owner of the property died and subsequently his heir also died without paying the estate tax, the surviving heir shall pay both the two cascading six percent amnesty rate.
The rate shall be based on the fair market value of the property at the time of death.
The privilege will not be extended to delinquent estate tax liabilities which have become final and executory, in which case the tax amnesty on delinquent accounts may be applied.
Likewise, properties involving unexplained wealth, money laundering and fraud are also excluded.
Bureau of Internal Revenue (MANILA BULLETIN)
The cash installments shall be made within two years from the date of the filing of the estate tax return, the BIR stated in Revenue Regulations (RR) No. 8-2019 signed by Finance Secretary Carlos Dominguez III based on the recommendation of Revenue Commissioner Caesar Dulay.
The regulations amended Section 9 of RR 12-2018 which implemented the estate tax amnesty law.
The guideline further advised taxpayers to use the payment form (BIR Form No. 0605), or the "payment form dedicated for the transactions for succeeding installment payments after the filing of the first payment through the estate tax return."
The government has come out with two tax amnesty programs, one for tax debts incurred in 2017 and prior years and another for unpaid estate tax.
The BIR expects to collect some P6 billion in estate taxes from the heirs of decedents.
The law provides taxpayers a one-time opportunity to settle estate tax obligations through the program that will give reasonable tax relief to estate with outstanding estate tax liabilities, according to revenue officials.
The amnesty covers the estate of the deceased who died on or before Dec. 31, 2017 which liabilities remained unpaid.
Taxpayers are given two years from the effectivity of the guideline to file the Estate Tax Amnesty Return (ETAR) through the revenue district office (RDO) having jurisdiction over the last residence of the deceased.
If the decedent has no legal residence in the country, the return shall be submitted at RDO 39 (South Quezon City).
The amnesty rate of six percent shall be imposed on each decedent's total net taxable estate at the time of death, without penalties at every stage of transfer of property.
To illustrate, if the original owner of the property died and subsequently his heir also died without paying the estate tax, the surviving heir shall pay both the two cascading six percent amnesty rate.
The rate shall be based on the fair market value of the property at the time of death.
The privilege will not be extended to delinquent estate tax liabilities which have become final and executory, in which case the tax amnesty on delinquent accounts may be applied.
Likewise, properties involving unexplained wealth, money laundering and fraud are also excluded.