Senate President Pro Tempore Panfilo “Ping” Lacson has filed a bill seeking to grant an amnesty on unpaid estate taxes covering the estates of individuals who died on or before Dec. 31, 2025 that have outstanding or accrued tax liabilities as of that date.

In filing Senate Bill No. 1889, Lacson seeks to broaden the tax base and accelerate revenue collection with the goal of minimizing prolonged litigation over tax liabilities.

SB No. 1889 also seeks to facilitate the reintegration of idle or previously immobilized assets to the formal economy.

"The proposed bill... seeks to enact a broader and more pragmatic Estate Tax Amnesty framework, Lacson said in the proposed "Estate Tax Amnesty Act of 2026."

“It authorizes a one-time opportunity for estates of decedents who died on or before a specified date to settle outstanding estate tax liabilities at a uniform rate of six percent, subject to simplified documentary and procedural requirements,” he said.

According to Lacson, the bill is designed to convert dormant or unrealized tax exposure into immediate fiscal inflow, enhance administrative efficiency, and allow the Bureau of Internal Revenue (BIR) to redirect enforcement resources toward current compliance efforts."

Furthermore, the bill clarifies the limited legal effect of availment, where payment under the amnesty program aims solely to settle tax liability, and does not extinguish liabilities under laws not covered by the amnesty.

"Proper parties and the Government retain full authority to pursue forfeiture, recovery, reversion, or criminal prosecution in accordance with applicable law. In this manner, fiscal settlement is compartmentalized from adjudication of substantive rights," he said.

Moreover, the bill strengthens administrative efficiency by limiting documentary requirements, providing for electronic filing and payment, and separating the process of tax settlement from the subsequent transfer of properties.

By removing restrictive disqualifications and puttng clear safeguards preserving enforcement authority, the proposed law presents a balanced and defensible policy approach.

“It widens the taxable universe, accelerates revenue collection, reduces prolonged litigation over tax liabilities, and facilitates productive reintegration of idle or immobilized assets into the formal economy," he said.

Under the bill, an Estate Tax Amnesty shall be granted to the estate of those who died on or before Dec. 31, 2025, with or without assessments issued therefore, whose estate taxes remained unpaid or had accrued as of Dec. 31, 2025.

Lacson said this can be availed notwithstanding any pending assessment, investigation, civil or administrative case, including actions for recovery of property, forfeiture or reversion, involving estate tax liabilities.

Under the bill, an estate may enjoy immunities and privileges of the Estate Tax Amnesty and pay an estate amnesty tax at the rate of 6 percent based on the decedent's total net estate at the time of death.

If an estate tax return was previously filed with the BIR, the estate tax rate of 6 percent shall be based on net undeclared estate. If the allowable deductions exceed the value of the gross estate, heirs, executors or administrators may avail of estate tax amnesty and pay the minimum estate amnesty tax of P5,000.

Lacson said those who wish to avail of this amnesty may file the required forms manually or electronically.