With only few months left until the deadline, here’s what you need to know about the availment of Estate Tax Amnesty and the filing of Estate Tax Amnesty Return (ETAR):
What is Estate Tax Amnesty?
The Tax Amnesty Act was enacted into law on February 14, 2019 to grant taxpayers a one-time opportunity to settle their tax obligations through an estate tax amnesty program that extends reasonable tax reliefs to estates with outstanding estate tax liabilities. This shall cover the estates of decedent/s who died on or before December 31, 2017, with or without assessments duly issued therefore, and whose estates taxes have remained unpaid or have accrued as of December 31, 2017.
It does not, however, extend to delinquent estate tax liabilities which have become final and executory, to those covered by Tax Amnesty on Delinquencies, and to properties involved in cases pending in appropriate courts.
Where and When to File
The Estate Tax Amnesty Return (BIR Form No.2118 – EA July 2021 [ENCS]), together with complete documentary requirements, shall be filed not later than July 14, 2023 by the executor or administrator, legal heirs, transferees or beneficiaries who wish to avail of the Estate Tax Amnesty. Said tax return (ETAR) shall be filed in the following BIR offices:
- For resident decedent – Revenue District Office (RDO) having jurisdiction over the last residence of the decedent.
- For non-resident decedent with executor or administrator in the Philippines – RDO where the executor/administrator is registered or if not yet registered, at the executor/administrator’s legal residence.
- For non-resident decedent with no executor or administrator in the Philippines – RDO No. 39 – South Quezon City
Proof of settlement of the estate, whether judicial or extra-judicial, need not to accompany the ETAR if it is not yet available at the time of its filing, but no Electronic Certificate Authorizing Registration (eCAR) shall be issued unless such proof is presented and submitted to the concerned RDO.
How to Avail Estate Tax Amnesty
- Accomplish the Estate Tax Amnesty Return (ETAR) and submit, together with the complete documentary requirements, to the concerned RDO for computation of Estate Tax Amnesty due and endorsement of Acceptance Payment Form (APF) (BIR Form No.0621 – EA July 2021 [ENCS]).
- Present the RDO-endorsed APF to Authorized Agent Banks (AABs) or Revenue Collection Officers (RCOs), whichever is applicable, and pay the amnesty amount.
- Submit the duly accomplished and sworn ETAR and APF with proof of payment, together with the complete documentary requirements, to the concerned RDO in triplicate copies on or before July 14, 2023.
- Receive the Certificate of Availment and Electronic Certificate Authorizing Registration (eCAR) from the RDO if proof of settlement of the estate, whether judicial or extra-judicial, has been submitted to the district office.
For more information on Estate Tax Amnesty, you can refer to this flyer from the BIR. You can also consult with our team for further assistance on the requirements, filing of ETAR, and assessment of the availing estates.
References:
Revenue Regulations No. 6-2019, as amended by RR No. 17-2021
Republic Act No. 11213, as amended by RA No. 11569
