B.I.R. Revenue Regulations No. 6-2019: Implementing Estate Tax Amnesty

In May 30, 2019, the Bureau of Internal Revenue released Revenue Regulations No. 6-2019 dated May 29, 2019 known as Implementing the Provisions of Estate Tax Amnesty under Title II of Republic Act (R.A.) No. 11213, Otherwise Known as the “Tax Amnesty Act”.

As stated, the purpose of Revenue Regulations No. 6-2019 was “to provide the taxpayers a one-time opportunity to settle estate tax obligations through an estate tax amnesty program that will give reasonable tax relief to estates with outstanding estate tax liabilities”.

According to the revenue regulation, the estate tax amnesty is available for the estate/s of decedents who died on or before December 31, 2017, with or without assessments, whose estate tax/es have remained unpaid as of December 31, 2017.

Under Revenue Regulations No. 6-2019, the estate tax amnesty does not cover the following cases:

  1. Delinquent estate tax liabilities which have become final and executor and those coverenedby the Tax Amnesty on Delinquencies; and
  2. Properties involved in cases pending in appropriate court:
  3. Falling under the jurisdiction of the Presidential Commission on Good Government;
  4. Involving unexplained or unlawfully acquired wealth under R.A. No. 3019, otherwise known as the Anti-Graft and Corrupt Practices Act, and R.A. No. 7080, or an Act Defining and Penalizing the Crime of Plunder;
  5. Involving violations of R.A. No. 9160, otherwise known as the Anti-Money Laundering Act, as amended;
  6. Involving tax evasion and other criminal offenses under Chapter II of Title X of the National Internal Revenue Code (NIRC) of 1997, as amended; and
  7. Involving felonies of frauds, illegal exactions and transactions and malversation of public funds and property under Chapters III and IV of Title VII of the Revised Penal Code.

The Estate Tax Amnesty rate is “six percent (6%) on each decedent’s total net taxable estate at the time of death without penalties at every state 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 estate amnesty tax for the transfer of the estate of each decedent shall be Five Thousand Pesos (P 5,000.00).

Under Section 10 of Revenue Regulations No. 6-2019, if the estate has properties which were not included in the previously filed return, the heirs can file an Estate Tax Amnesty Return and pay the estate amnesty tax at the rate of six percent (6%) without penalties, based on the net taxable value of the Net Undeclared Estate within  two years from the effectivity of Revenue Regulations No. 6-2019.

Here is a full copy of Revenue Regulations No. 6-2019.

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