Finance Secretary Benjamin E. Diokno lauded the Senate’s approval of the extension of estate tax amnesty until 2025 adding the law would allow government to collect more revenues from errant taxpayers.
The Department of Finance (DOF) said it expects the legislative measure to be signed into law by President Ferdinand R. Marcos Jr. before his second State of the Nation Address on July 24.
“The [DOF] welcomes the renewed extension of the estate tax amnesty period. This will allow errant taxpayers to settle their estate tax liabilities affordably, enable the government to collect additional revenues and strengthen tax compliance,” Diokno said.
The DOF said the national government as of March 31 has collected P7.41 billion from 133,860 beneficiaries, who availed of the estate tax amnesty, since the Tax Amnesty Law was enacted in 2019.
The Senate recently approved Senate Bill (SB) 2219 that seeks to extend the availment of the estate tax amnesty until June 14, 2025. The estate tax amnesty was set to expire on June 14.
SB 2219 was passed unanimously on third reading last May 29 with 24 affirmative votes and no negative votes or abstentions. (Related story: https://businessmirror.com.ph/2023/05/30/senators-ok-estate-tax-amnesty-extension/)
SENATORS said last Monday they saw SB 2219 necessary in light of the findings that many ordinary people are unable to comply with estate tax payments in a timely manner in view of the numerous requirements that pose a burden to them.
“But we are not only extending availment window,” Senate President Juan Miguel F. Zubiri has said. “We are also expanding on the estates covered by the amnesty. By doing so, we hope that we can assuage the grief of the families of those who fell during the long pandemic night.”
SB 2219 also seeks to amend the original law, which mandated the estate tax amnesty, to also “cover the unsettled estates of decedents who died on or before May 31, 2023,” according to the DOF.
“The timely enactment of this measure is crucial, as it will provide much-needed relief to individuals and families facing extraordinary circumstances, while supporting the national government’s efforts to spur development by incentivizing the regularization of assets,” Diokno said.
The DOF explained that the bill also allows those who avail of the amnesty program to file estate tax returns electronically or manually.
“Taxpayers may settle the tax due through any authorized agent bank, revenue district office, or authorized tax software provider,” it said.
“Furthermore, the bill streamlines documentary requirements that should be submitted to the Bureau of Internal Revenue (BIR) and allows payment of outstanding liabilities in two-year installments without civil penalty or interest,” it added.