Diokno lauds estate tax amnesty extension
Published May 30, 2023 02:58 am
The Department of Finance (DOF) welcomed the Senate’s approval of the proposed measure seeking to extend the period of availment of the estate tax amnesty for another two years.
In a statement, Finance Secretary Benjamin E. Diokno said the extension of the estate tax amnesty until June 14, 2025, would generate additional revenues for the government and improve tax compliance.
“This will allow errant taxpayers to settle their estate tax liabilities affordably, enable the government to collect additional revenues, and strengthen tax compliance,” Diokno said.
Last Monday, Senate Bill No. 2219 was passed unanimously on third reading with 24 affirmative votes and no negative votes or abstentions.
Diokno said the bill is expected to be signed into law by President Marcos before his second State of the Nation Address on July 24.
The bill further extends the availment period of the estate tax amnesty for another two years, past the original expiration of June 14, 2023.
Additionally, the measure amends the original law to also cover the unsettled estates of decedents who died on or before May 31, 2023.
“The timely enactment of this measure is crucial, as it will provide much-needed relief to individuals and families facing extraordinary circumstances, while supporting the national government’s efforts to spur development by incentivizing the regularization of assets,” Diokno said.
The bill also allows those who avail of the amnesty program to file estate tax returns electronically or manually.
Taxpayers may settle the tax due through any authorized agent bank, revenue district office, or authorized tax software provider.
Furthermore, the bill streamlines documentary requirements that should be submitted to the Bureau of Internal Revenue (BIR) and allows payment of outstanding liabilities in two-year installments without civil penalty or interest.
From the enactment of the Tax Amnesty Law in 2019 until March 31, 2023, the national government collected P7.41 billion from 133,860 beneficiaries who availed of the estate tax amnesty.