Senate Majority Leader Juan Miguel “Migz” Zubiri has joined other lawmakers in pushing for a bill seeking to extend the deadline for the Estate Tax Amnesty to December 31, 2028.

Senate Majority Leader Juan Miguel "Migz" Zubiri (Senate PRIB photo)

Zubiri said passage of Senate Bill No. 1865 into law would give heirs more time to settle long-standing obligations and finally transfer properties that have remained legally frozen due to unpaid estate taxes.

The bill primarily seeks to grant relief to families having difficulties settling the estate tax by extending the amnesty to 2028.

“Marami sa atin ang nagdadalamhati na nga sa pagkawala ng mahal sa buhay, nahihirapan pa silang bunuin ang estate tax kapag may naiwang property para sa kanila, lalo na kung wala pang kakayahang bayaran ito (Many of us are already grieving the loss of a loved one, and they still struggle to deal with estate taxes when property is left to them, especially if they don't have the ability to pay it),” Zubiri said.

Estate tax is the tax the government collects on the transfer of a person’s property to their heirs after death. Under current rules it is computed as six percent (6%) of the net estate before heirs can legally move titles to their names.

The original Estate Tax Amnesty Law, Republic Act No. 11213, was enacted to encourage heirs to settle unpaid estate taxes with reduced penalties, surcharges and interests, and was later extended by Republic Act No. 11569 and again by Republic Act No. 11956, which pushed the deadline to June 14, 2025, a period that has already lapsed, prompting calls for a third extension.

Under the proposed measure, heirs of decedents who passed away on or before Dec. 31, 2024 may avail of the amnesty, provided they pay the corresponding estate tax.

“Bakit nahihirapan ang mga pamilya sa estate tax? Kasi kung malaki ang halaga ng property, malaki rin ang halaga ng babayarang buwis. Imagine the property in question is worth P25 million after the allowable deductions, hindi naman biro ang P1.5 million na estate tax, lalo na for middle-income families (Why do families have difficulty with estate tax? Because if the value of the property is large, the amount of tax to be paid is also large. Imagine if the property in question is worth P25 million after the allowable deductions, the P1.5 million estate tax is no joke, especially for middle-income families),” Zubiri pointed out.

And if they are unable to pay on time, Zubiri pointed out the families face the penalties, interests and surcharges which keep piling up. In some cases, there are families who even face criminal liability.

“So families will be facing huge fines and even imprisonment,” he lamented.

Aside from the base six percent estate tax, failure to settle on time may result in a 25 percent surcharge for late payment, a 50 percent surcharge in cases of willful neglect or fraudulent returns, interest at 12 percent per annum, and potential fines and imprisonment under the National Internal Revenue Code.

“Hindi naman natin tinatanggal ang 6% estate tax sa ating amnesty. Babayaran pa rin naman iyon. Ang inaalis natin ay ang mabibigat na penalties at interest na nagpapahirap lalo sa mga pamilya (We are not eliminating the 6% estate tax in our amnesty. That will still be paid. What we are eliminating are the heavy penalties and interest that make it especially difficult for families),” he explained.

Zubiri also said the government has to consider the economic implications of unlocking idle properties that remain tied up in unsettled estates.

More than the humanitarian aspect, the lawmaker said that once titles are properl transferred, heirs are able to utilize these assets to generate economic activity.

“When these properties are legally transferred, they gain higher economic value. Heirs can sell them, lease them, develop them or use them as collateral for business. That means more movement in the land market and eventually more revenue for government through other taxes like capital gains,” Zubiri stressed.

Earlier, the House of Representatives approved on third and final reading its own version of the measure, House Bill No. 6614, which also seeks to extend the estate tax amnesty deadline to Dec. 31, 2028.

Other senators who filed similar measure are Senators Francis “Kiko” Pangilinan, Joseph Victor “JV” Ejercito, Jinggoy Estrada, Erwin Tulfo and Mark Villar.

However, the Senate Ways and Means Committee, which is chaired by Sen. Pia Cayetano has yet to conduct a public hearing on the pending measures.