RMC No. 102-2019: Provides additional issues relative to the implementation of Estate Tax Amnesty pursuant to the provisions under Title II of Republic Act No. 11213 (Tax Amnesty Act)

Key points

1. Where to file. If an estate has several stages of succession and the later decedents owned separate properties, a separate Estate Tax Amnesty Return is filed with the RDO of each decedent’s last residence. If the decedent has an on-going investigation in another RDO, the amnesty is filed with the RDO of the last residence and the investigation is consolidated there.
2. eCAR and bond. Under Revenue Memorandum Order No. 62-2010, the eCAR is issued only after the Revenue Officer’s investigation report and payment of any deficiency taxes. If the filer insists on earlier issuance, the eCAR may be issued upon posting a bond, either through a bonding company or in cash.
3. Deficiency tax and lost titles. Amnesty is still available despite a noted deficiency if the deficiency estate tax is not yet delinquent and the decedent died on or before December 31, 2017. A lost owner’s copy of the title requires a certified true copy from the Register of Deeds/LRA. If the RD’s copy is lost, only the Certificate of Availment is issued until the reconstituted title is submitted.
4. Deductions. With a pending court case on heirship after an earlier extrajudicial settlement and CAR, judicial expenses cannot be deducted for undeclared properties. No further deductions are allowed for them, except the surviving spouse’s share of undeclared conjugal property. Medical expenses are a special deduction under Section 86 (A) of the Tax Code, as implemented by RR No. 2-2003.
5. Heirs and settlement. A supplemental Extra Judicial Settlement covering the undeclared property is required. With many heirs, one heir cannot adjudicate only his or her share, and an EJS signed by all heirs is required. Self-adjudication is allowed with only one heir.
6. Waiver of rights. A general waiver or renunciation of rights is not a donation. No Documentary Stamp Tax is due, so no Donor’s Tax Return or DST Return is needed.

Who is affected

• Heirs of decedents availing of Estate Tax Amnesty
• Executors and administrators of estates

Deadlines and effectivity

• Decedent died on or before December 31, 2017