While delinquent estate taxpayers may avail themselves of installment payments under the amnesty program, the taxman warned that missing due dates will result in the forfeiture of amnesty benefits.

“Installment payment may be allowed within two years from the statutory date of its payment without civil penalty and interest, subject to prior approval of the concerned revenue district office (RDO),” the Bureau of Internal Revenue (BIR) said.

Internal Revenue Commissioner Charlito Martin R. Mendoza clarified in Revenue Memorandum Circular (RMC) No. 33-2026 that estate tax amnesty applicants may settle obligations in tranches, but strict deadlines remain enforceable, stressing that compliance failures carry consequences such as the loss of tax relief privileges.

“Failure to pay any installment on or before its scheduled due date shall be considered a forfeiture of the estate tax amnesty availment,” the circular stated.

Once forfeited, taxpayers are brought back under the regular tax regime. “Consequently, the properties covered by the application but not fully settled under the estate tax amnesty shall be subject to the applicable estate tax laws in effect at the time of the decedent’s death,” the circular read.

Further, the BIR clarified how undeclared estate assets are treated, noting that taxation is not based on current rules. “The laws and regulations applicable at the time of death of the decedent shall be followed,” it said, adding that the correct tax rates will apply only to undeclared properties.

For estate settlement documentation, the BIR noted that there is no fixed deadline for submission of proof of settlement, such as extrajudicial agreements or court orders. However, it clarified that these remain essential for processing transfer documents.

“There is no deadline to submit the proof of settlement of estate,” the BIR said, but added that “the proof of settlement is required for the processing and issuance of the eCAR [electronic certificate authorizing registration], which is necessary for the transfer of the estate’s assets.”

Flexibility in payment structure is allowed by the agency, noting that installment amounts may vary as long as full payment is completed within two years. But the BIR reiterated that approval from the concerned RDO is required before availing of such an arrangement.

This means heirs who fail to complete installment payments are required to settle remaining tax liabilities under regular rules, including penalties, underscoring the strict enforcement of payment conditions under the amnesty program.