The House of Representatives committee on ways and means proposal to extend the estate tax amnesty for another three years has the backing of Finance Secretary Frederick Go.
The proposal to extend the amnesty tax deadline from December 31, 2028 from the initial Dec. 31, 2024, had been awaiting the official Department of Finance position paper, as discussions were delayed due to a recent cabinet shakeup.
Under the new deadline, applicants must complete the required documentary submissions and pay the amnesty tax by Dec. 31, 2028.
In a statement, Go said the extension would give Filipino families more time to settle obligations on inherited properties.
The proposal will also provide an installment payment of the tax spread over one year, which the DOF said would help ease the financial burden on families formalizing inheritance. It covers the estates of descendants who died on or before May 31, 2022.
The estate tax, which is imposed under the National Internal Revenue Code, is a one-time payment for the legal transfer of ownership of a deceased person’s assets to the lawful heirs and beneficiaries.
In August 2023, a bill that would move the estate tax amnesty deadline to June 14, 2025 lapsed into law. It amended Republic Act No. 11569, which had previously extended the deadline from June 15, 2021 to June 24, 2023.
It is said that death and taxes are among the few constants in this world, and although the estate tax is proof of that, it is an obligation that many Filipinos do not understand well or simply forget to fulfill in the midst and confusion of the grieving process, often resulting in steep penalties. The estate tax amnesty gives an opportunity to correct those mistakes, while at the same time improving the government’s tax collection efforts.
Hopefully, the lawful heirs and beneficiaries of the deceased, along with the government, make the most of this opportunity.*
