Senate OKs bill extending estate tax amnesty to June 2025; allows installment payment option
The Senate has approved on third and final reading Senate Bill (SB) No. 2219 extending the period of availment of estate tax amnesty.
"Narinig po natin ang panawagan ng ating mga taxpayers, at ito na po ang ating sagot sa kanila (We heard the call of our taxpayers and this is our answer to them),” Senate President Juan Miguel "Migz" Zubiri said during the plenary session on Monday, May 29.
Zubiri co-authored and co-sponsored the bill, alongside Senator Sherwin Gatchalian, chairman of the Senate committee on ways and means.
The bill extends the period of availment of estate tax amnesty by two years, until 14 June 2025. This is the second extension of the amnesty, which was first extended from 2021 to 2023.
“Owing to the challenges of the pandemic, there are still people who have not been able to avail of the amnesty even with the first extension. Ipinasa natin itong second extension para sa kanila (We passed this measure for the second time for their sakes),” the Senate chief said.
“But we are not only extending availment window, we are also expanding on the estates covered by the amnesty. By doing so, we hope that we can assuage the grief of the families of those who fell during the long pandemic night,’’ he added.
Where House Bill 7909 expands the amnesty coverage for the estates of individuals who died until December 31, 2021, the Senate version extends the coverage until May 31, 2022.
“Alongside the extension, the Senate bill also addresses issues with the ease of paying taxes, by giving a clear list of requirements to be submitted to the Bureau of Internal Revenue (BIR), allowing for easier filing of tax returns, and allowing for an installment option for payments,” he added.
Electric or manual filing of estate tax amnesty returns, whichever is more convenient for the taxpayer, are allowed for under SB 2219, as well as the payment of taxes with any authorized agent bank, revenue district office, or authorized tax software provider.
The bill also allows for payment by installment within two years from the statutory date, without civil penalty and interest.
“Sa ganitong paraan, hindi na po masyadong mabigat sa ating mga kababayan ang pagbayad ng (In this way, our countrymen would not be burdened in paying) estate taxes under the amnesty program,” he said.
“We want to make tax payments as easy and painless as possible for our people, so we can see healthier tax collections, that will redound to the benefit of the country as well,’’ Zubiri added.