Estate Tax Amnesty extension approved in Senate

Senate Bill No. 2219 (SBN 2219), which extended the period of Availment of Estate Tax Amnesty, was approved on third reading in the Senate.

“Narinig po natin ang panawagan ng ating mga taxpayers, at ito na po ang ating sagot sa kanila,” said Senate President Juan Miguel Zubiri, who co-authored and co-sponsored the bill, alongside the Chairperson of the Senate Committee on Ways and Means, Sen. Win Gatchalian.

The bill extends the period of availment of estate tax amnesty by two years, until 14 June 2025. This is the second extension of the amnesty, which was first extended from 2021 to 2023.

“Owing to the challenges of the pandemic, there are still people who have not been able to avail of the amnesty even with the first extension. Ipinasa natin itong second extension para sa kanila,” the Senate President said.

“But we are not only extending availment window, we are also expanding on the estates covered by the amnesty. By doing so, we hope that we can assuage the grief of the families of those who fell during the long pandemic night.”

Where House Bill No. 7909 expands the amnesty coverage for the estates of individuals who died until 31 December 2021, the Senate version extends the coverage until 31 May 2022.

“Alongside the extension, the Senate bill also addresses issues with the ease of paying taxes, by giving a clear list of requirements to be submitted to the Bureau of Internal Revenue, allowing for easier filing of tax returns, and allowing for an installment option for payments,” he added.

Electric or manual filing of estate tax amnesty returns, whichever is more convenient for the taxpayer, are allowed for under SBN 2219, as well as the payment of taxes with any authorized agent bank, revenue district office, or authorized tax software provider.

The bill also allows for payment by installment within two years from the statutory date, without civil penalty and interest.

“Sa ganitong paraan, hindi na po masyadong mabigat sa ating mga kababayan ang pagbayad ng estate taxes under the amnesty program,” he said.

“We want to make tax payments as easy and painless as possible for our people, so we can see healthier tax collections, that will redound to the benefit of the country as well.”

Meanwhile, Finance Secretary Benjamin E. Diokno welcomed the Senate’s approval of Senate Bill No. 2219 extending the period of availment of the estate tax amnesty until June 14, 2025.

“The Department of Finance welcomes the renewed extension of the estate tax amnesty period. This will allow errant taxpayers to settle their estate tax liabilities affordably, enable the government to collect additional revenues, and strengthen tax compliance,” Finance Secretary Benjamin E. Diokno said.

Senate Bill No. 2219 was passed unanimously on third reading on May 29, 2023 with 24 affirmative votes and no negative votes or abstentions. It is expected to be signed into law by the President before the second State of the Nation Address (SONA) on July 24, 2023.

The bill further extends the availment period of the estate tax amnesty for another two (2) years or until June 14, 2025, past the original expiration of June 14, 2023.

Additionally, the measure amends the original law to also cover the unsettled estates of decedents who died on or before May 31, 2023.

“The timely enactment of this measure is crucial, as it will provide much-needed relief to individuals and families facing extraordinary circumstances, while supporting the national government’s efforts to spur development by incentivizing the regularization of assets,” Secretary Diokno added.

The bill also allows those who avail of the amnesty program to file estate tax returns electronically or manually. Taxpayers may settle the tax due through any authorized agent bank, revenue district office, or authorized tax software provider.

Furthermore, the bill streamlines documentary requirements that should be submitted to the Bureau of Internal Revenue (BIR) and allows payment of outstanding liabilities in two-year installments without civil penalty or interest.

From the enactment of the Tax Amnesty Law in 2019 until March 31, 2023, the national government collected PHP7.41 billion from 133,860 beneficiaries who availed of the estate tax amnesty.