THE Bureau of Internal Revenue (BIR) released on Wednesday the draft revenue regulation (RR) on estate tax amnesty offering under Republic Act (RA) 11213, or the Tax Amnesty Act of 2019, to enable the public and other stakeholders to air their recommendations and suggestions for the final implementing rules and regulations of the amnesty proposal.
The BIR held a public consultation on Wednesday in line with its pending issuance of the RR on estate tax amnesty, with the draft RR uploaded to the bureau’s web site for assessment.
Under the draft RR, the government will provide taxpayers a one-time opportunity to settle their respective estate tax obligations under its tax amnesty program as mandated by RA 11213, which will provide relief to those applying for the amnesty.
The amnesty is seen to cover the estates of those who died on or before December 2017 that has remained unpaid.
Exemptions under the RR include delinquent estate tax liabilities, which have become final and executory and covered by tax amnesty on delinquencies; and properties involved in cases pending in appropriate courts.
“An estate tax amnesty rate of 6 percent shall be imposed on each decedent’s total net taxable estate at the time of death without penalties at every stage of transfer of property in cognizance with the rules of succession under the Civil Code of the Philippines on the transmission of properties, interests, rights and obligations of the decedent, provided that the minimum amnesty tax for the transfer of the estate of each decedent shall be P5,000,” the draft RR stated.
In the payment and filing for the estate tax amnesty, availees should secure an estate tax amnesty return form, among others, and shall file their estate tax amnesty applications within two years from the effectivity of the RR. The forms shall be filed at the respective Revenue District Office (RDO) having jurisdiction over the last residence of the decedent.
“In case of a nonresident decedent, with executor or administrator in the Philippines, the return shall be filed with the RDO where such executor/administrator is registered or if not yet registered, at the place of domicile. If there is no executor or administrator, the return shall be filed with RDO 39-South Quezon City. The foregoing provisions notwithstanding, the Commissioner of Internal Revenue may exercise his power to allow a different venue/place in the filing of tax returns,” the draft RR added.
It was earlier reported, that President Duterte partially vetoed the general amnesty provision under the Tax Amnesty Act of 2019 or RA 11213, which was signed on February 14 this year, retaining only the provisions on estate tax amnesty and the amnesty on delinquency taxes.
RA 11213 seeks to enhance revenue administration and collection by granting an amnesty on all unpaid internal revenue taxes imposed by the national government for taxable year 2017 and prior years. This is with respect to estate tax and other internal revenue taxes and tax on delinquencies.