BIR releases proposed rules on estate tax amnesty
Published Apr 24, 2019 07:07 am
By Jun Ramirez
The Bureau of Internal Revenue (BIR) released Wednesday the much-awaited proposed implementing regulations on estate tax amnesty for review and comment by stakeholders prior to its finalization and approval by the Department of Finance.
Bureau of Internal Revenue (MANILA BULLETIN)
The drafting of the guideline took some time due to complication of several issues involving transfer of the same properties from the heirs to succeeding heirs, unlike the straightforward regulations of the amnesty on delinquent accounts which was published last April 5.
Copies of the proposed regulations were distributed to lawyers and certified public accountants who attended the public consultation at the BIR main office in Quezon City.
The six-page version, fixed the estate amnesty rate at six percent for each decedent's total net estate tax at the time of date without penalties at every stage of transfer.
It prescribes a P5,000 minimum payment for transfer of the estate of each decedent who died on or before December 31,2017.
The properties shall be based on the fair market value as of the time of death of the decedent.
The estate tax return shall be filed within two years from the effectivity of the regulations with the revenue district office (RDO) having jurisdiction over the last residence of the deceased, or at the address of the administrator in case the decedent is non-resident.
"The estates covered by the amnesty shall be immune from the payment of all estate taxes as well as any increments arising from the failure to pay any and all estate taxes for 2017 and prior years," the proposed regulations stated.
Excluded from the amnesty program are cases falling under the jurisdiction of the Presidential Commission on Good Government as well as unexplained wealth or unlawfully acquired wealth under the Anti-Graft and Corrupt Practices Act.
Cases involving money laundering, tax evasion, fraud and malversation cannot avail of the privilege.
Also excluded are delinquent estate tax liabilities which have become final and executory covered by tax amnesty delinquencies.
Bureau of Internal Revenue (MANILA BULLETIN)
The drafting of the guideline took some time due to complication of several issues involving transfer of the same properties from the heirs to succeeding heirs, unlike the straightforward regulations of the amnesty on delinquent accounts which was published last April 5.
Copies of the proposed regulations were distributed to lawyers and certified public accountants who attended the public consultation at the BIR main office in Quezon City.
The six-page version, fixed the estate amnesty rate at six percent for each decedent's total net estate tax at the time of date without penalties at every stage of transfer.
It prescribes a P5,000 minimum payment for transfer of the estate of each decedent who died on or before December 31,2017.
The properties shall be based on the fair market value as of the time of death of the decedent.
The estate tax return shall be filed within two years from the effectivity of the regulations with the revenue district office (RDO) having jurisdiction over the last residence of the deceased, or at the address of the administrator in case the decedent is non-resident.
"The estates covered by the amnesty shall be immune from the payment of all estate taxes as well as any increments arising from the failure to pay any and all estate taxes for 2017 and prior years," the proposed regulations stated.
Excluded from the amnesty program are cases falling under the jurisdiction of the Presidential Commission on Good Government as well as unexplained wealth or unlawfully acquired wealth under the Anti-Graft and Corrupt Practices Act.
Cases involving money laundering, tax evasion, fraud and malversation cannot avail of the privilege.
Also excluded are delinquent estate tax liabilities which have become final and executory covered by tax amnesty delinquencies.