RMC No. 26-2019: Circularizes RA No. 11213 entitled “An Act Enhancing 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 with Respect to Estate Tax, Other Internal Revenue Taxes, and Tax on Delinquencies”, together with the Veto Message of President Rodrigo R. Duterte

Key points

1. Estate tax amnesty. It covers estates of decedents who died on or before December 31, 2017 whose estate taxes remained unpaid or accrued as of that date. The estate amnesty tax is six percent (6%) of the total net estate at the time of death, or of net undeclared estate if a return was previously filed. If deductions exceed the gross estate, the minimum estate amnesty tax is Five Thousand Pesos (P5,000.00).
2. Estate amnesty filing. A sworn Estate Tax Amnesty Return is filed with the RDO having jurisdiction over the decedent’s last residence within two (2) years from effectivity of the Implementing Rules and Regulations. Payment is made when the return is filed, and nonresident decedents file and pay at RDO No. 39 or another RDO named in the rules.
3. Estate amnesty exclusions. It does not cover estate tax cases that have become final and executory, or properties in pending court cases involving the Presidential Commission on Good Government, unexplained or unlawfully acquired wealth (RA No. 3019, RA No. 7080), RA No. 9160, tax evasion and other crimes under Chapter II of Title X of the NIRC, or fraud-related felonies under the Revised Penal Code.
4. Amnesty on delinquencies. It covers all national internal revenue taxes for 2017 and prior years, including those collected by the Bureau of Customs. It may be availed of for final and executory delinquencies and assessments, pending criminal cases for tax evasion, final court judgments, and withholding tax agents who withheld but did not remit.
5. Delinquency amnesty rates. The rates are 40% of the basic tax assessed for final and executory delinquencies and assessments, 50% for final court judgments, 60% for pending criminal cases with assessments issued, and 100% for withholding agents who withheld but failed to remit.
6. Delinquency filing and immunity. A sworn Tax Amnesty on Delinquencies Return with a Certification of Delinquency is filed within one (1) year from effectivity of the Implementing Rules and Regulations, with payment at filing. Full compliance gives immunity from the related suits, cases and penalties, and an Authority to Cancel Assessment is issued within fifteen (15) calendar days from submission.

Who is affected

• Estates of decedents who died on or before December 31, 2017
• Taxpayers with 2017 and prior-year delinquencies
• Withholding agents who failed to remit

Deadlines and effectivity

• Estate amnesty return: within two (2) years from effectivity of the IRR
• Delinquency amnesty return: within one (1) year from effectivity of the IRR
• Coverage: taxable year 2017 and prior years