Friday, May 31, 2019
The Filipino Government has said it is planning to launch its proposed estate tax amnesty next month.
Taxpayers would be given two years to file the Estate Tax Amnesty Return (ETAR) or BIR Form No. 2118-EA in triplicate copies at the Revenue District Office (RDO) that has jurisdiction over the last residence of the decedent.
If the decedent has no legal residence in the Philippines, the return shall be filed with RDO 039 – South Quezon City. The estate tax amnesty will cover the estate of the decedent/s who died on or before December 31, 2017.
An estate tax amnesty rate of six percent, with a minimum tax amnesty amount of PHP5,000, shall be imposed on each decedent's total net taxable estate at the time of death without penalties at every stage of transfer of property.
However, the Estate Tax Amnesty shall not extend to the following: delinquent estate tax liabilities which have become final and executory, in which case the Tax Amnesty on Delinquencies may be applied; and properties involved in cases pending in appropriate courts.
The estate shall be valued at its fair market value (FMV) as of the time of death. However, the value of the real property as of the time of death shall be whichever is higher of the zonal values as determined by the Commissioner, or the FMV as shown in the schedule of values fixed by the Provincial or City Assessors.