THE Bureau of Internal Revenue (BIR) said the rules for the implementation of the estate tax amnesty will be issued this week or before next month.
The BIR said in a statement on Monday that it was ready with the rules after holding public consultations for the proposed revenue regulation for the estate tax amnesty under Republic Act (RA) 11213 or the Tax Amnesty Act of 2019.
Under the draft rules, taxpayers are given two years from the effectivity of the finalized revenue regulation to file the Estate Tax Amnesty Return (Etar) or BIR Form 2118-EA in triplicate copies at the Revenue District Office (RDO) having the jurisdiction over the last residence of the decedent.
“If the decedent has no legal residence in the Philippines, the return shall be filed with RDO 039-South Quezon City,” the BIR added.
The estate tax amnesty shall cover the estate of the decedents who died on or before December 31, 2017, with an estate tax amnesty rate of 6 percent.
A minimum tax amnesty amount of P5,000 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.
According to the BIR, the estate tax amnesty shall not extend to the following: delinquent estate tax liabilities which have become final and executory, in which case the tax amnesty on delinquencies may be applied; and properties involved in cases pending in appropriate courts.
The estate shall be valued at its fair market value (FMV) as of the time of death of the owner.
However, the value of the real property as of the time of death shall be whichever is higher of the zonal values as determined by the BIR commissioner, or the FMV as shown in the schedule of values fixed by the provincial or city assessors.
Last month, the BIR released the draft RR on estate tax amnesty to enable the public and other stakeholders to air their suggestions for the final IRR of the amnesty proposal.