RMC No. 68-2019: Provides clarification on certain issues relative to the Estate Tax Amnesty under Republic Act No. 11213 (Tax Amnesty Act)

Summary

RMC No. 68-2019 clarifies certain issues on the Estate Tax Amnesty under RA No. 11213 (Tax Amnesty Act), covering who may avail, where to file, the rate and payment, and specific scenarios.

Key points

1. Who may avail and where to file. An estate of a decedent who died on or before December 31, 2017 and is not covered by the exceptions in Section 3 of RR No. 6-2019 qualifies. The filer files the ETAR with the RDO covering the decedent’s last residence, or the RDO that issued the estate’s TIN, within two (2) years from the effectivity of RR No. 6-2019, or from June 15, 2019 to June 14, 2021.
2. Special filing cases. For a non-resident decedent, the executor or administrator in the Philippines files with the RDO where registered or, if unregistered, the RDO covering their legal residence. If there is none, the return goes to RDO No. 39-South Quezon City, and returns for multiple decedents’ common properties may be filed together in any one RDO covering the last residence of any decedent.
3. Rate. A rate of six percent (6%) of the decedent’s total net taxable estate at the time of death applies at every stage of succession, with a minimum of Five Thousand Pesos (P5,000.00) per decedent. The same rate applies to undeclared properties, without deductions deemed claimed in the earlier return, except the surviving spouse’s share on undeclared conjugal property.
4. Estate and inheritance taxes. If the decedent died when estate and inheritance taxes applied, those taxes are not computed separately. The 6% rate covers both unpaid taxes, and deductions follow the Estate Tax law at the time of death.
5. Payment rules. Payment is made to an Authorized Agent Bank under the RDO, or to the Revenue Collection Officer for cash of Twenty Thousand Pesos (P20,000.00) and below, or for manager’s or cashier’s check of any amount. Installment payment is not allowed, and voluntary payments under Payment Form No. 0605 before the effectivity of RR No. 6-2019 are not valid payment for the amnesty but may be claimed for refund.
6. Other clarifications. The Circular also covers TIN issuance for the estate and heirs, Extra Judicial Settlement requirements, valuation when no zonal value exists, one eCAR per real property, death certificate alternatives, expropriation cases, pending court settlements and pending investigations. Failure to submit the validated APF with proof of payment within the two-year period is non-availment, though payments may be applied to the regular Estate Tax due including penalties.

Who is affected

• Estates of decedents who died on or before December 31, 2017
• Executors, administrators, legal heirs, transferees and beneficiaries
• Holders or buyers in a deed of sale transaction, on behalf of heirs

Deadlines and effectivity

• Decedent died on or before December 31, 2017
• Filing period: June 15, 2019 to June 14, 2021
• Validated APF with proof of payment due within the two-year availment period

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.