RR No. 6-2019: Implements the provisions of Estate Tax Amnesty pursuant to Republic Act No. 11213 (Tax Amnesty Act)

Summary

RR No. 6-2019 implements the Estate Tax Amnesty under RA No. 11213 (Tax Amnesty Act).

Key points

1. Coverage. The amnesty covers estates of decedents who died on or before December 31, 2017, with or without assessments, whose estate taxes remained unpaid or accrued as of that date.
2. Exclusions. It does not extend to delinquent estate tax liabilities that are final and executory or covered by the Tax Amnesty on Delinquencies. It also excludes properties in pending court cases involving the Presidential Commission on Good Government, unexplained or unlawfully acquired wealth under R.A. No. 3019 and R.A. No. 7080, violations of R.A. No. 9160, tax evasion and other criminal offenses under Chapter II of Title X of the NIRC, and certain felonies under Chapters III and IV of Title VII of the Revised Penal Code.
3. Rate. A rate of six percent (6%) applies to each decedent’s total net taxable estate at the time of death, without penalties. The minimum Estate Amnesty Tax for each decedent’s estate is Five Thousand Pesos (P5,000.00).
4. Gross estate and valuation. Residents and citizens include all properties wherever situated, and non-resident aliens include only properties in the Philippines. Properties are valued at fair market value at the time of death, with specific rules for real property, listed and unlisted shares, club shares and cash in bank.
5. Filing and payment. The Estate Tax Amnesty Return (BIR Form No. 2118-EA) is filed with the RDO having jurisdiction over the decedent’s last residence, or RDO No. 39 South Quezon City for a non-resident decedent with no executor or administrator in the Philippines. The Acceptance Payment Form (BIR Form No. 0621-EA) must be endorsed by the RDO before payment to an Authorized Agent Bank or Revenue Collection Officer, and the documents are then submitted in triplicate.
6. Certificate, eCAR and immunity. The RDO issues the Certificate of Availment within fifteen (15) calendar days from receipt of the application with validated APF and complete requirements. Estates that fully comply, including payment, are immune from estate taxes and related additions, cases and penalties for 2017 and prior years, and availment is not an admission of liability.

Who is affected

• Estates of decedents who died on or before December 31, 2017
• Executors, administrators, legal heirs, transferees and beneficiaries

Deadlines and effectivity

• Decedent died on or before December 31, 2017
• Return filed within two (2) years from the effectivity of the Regulations
• Certificate of Availment within fifteen (15) calendar days from receipt of application

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