Estate Tax Amnesty and Returns for Multiple Estates in the Philippines

(A comprehensive practitioner’s guide as of 20 June 2025)

1. Statutory Foundations

Law / Issuance	Key Take-aways	Dates in Force*
Republic Act No. 11213 – Tax Amnesty Act of 2019	Created a one-time estate-tax amnesty at a flat 6 % of the decedent’s net estate (or ₱5 000 minimum) in lieu of all basic tax, surcharges, interest and penalties for deaths on or before 31 December 2017.	15 March 2019 – 14 June 2021
RA 11569 (2021)	Extended the filing-and-payment window by two years.	15 June 2021 – 14 June 2023
RA 11956 (2023)	Gave a second two-year extension, now expiring 14 June 2025.	15 June 2023 – 14 June 2025
Revenue Regulations 6-2019	Implementing rules: coverage, return (BIR Form 2118-E), documentary requirements, and installment privileges (≤ 2 years, no interest).	2019
RR 17-2021 & RR 2-2023	Aligned deadlines with RA 11569 and RA 11956; clarified that applications already filed need not be re-validated.	2021 / 2023
Revenue Memorandum Circulars (RMCs) 68-2019, 107-2019, 33-2021, 71-2023	Frequently-asked issues on valuation dates, small estates, co-ownership, multiple estates, and lien lifting.	2019 – 2023

* The underlying estate must have a date of death on or before 31 December 2017; only the availment period moves.

2. Coverage and Exclusions

Covered	Expressly Excluded
• Estates of natural persons who died on or before 31 Dec 2017. • Resident and non-resident decedents (Philippine-situs property for the latter). • Estates with existing BIR assessments, open audits, or even court cases, unless already decided with finality.	• Properties adjudged as ill-gotten wealth under the PCGG/Forfeiture laws. • Estates involved in pending cases under Anti-Money Laundering Act or RA 7080 (Plunder). • Delinquencies *already paid or compromised before filing.

3. Core Mechanics

Tax Base & Rate Net estate = Gross estate valued at date of death minus deductions allowed by the National Internal Revenue Code (NIRC) as it existed on that very date (standard deduction, family home, funeral, medical, etc.). Amnesty Tax = 6 % × Net estate (₱5 000 minimum per estate).

Documentary Checklist

Mandatory	When Applicable
• BIR Form 2118-E (Estate Tax Amnesty Return – ETAR) • PSA-certified death certificate • TIN of the Estate (separate from decedent and heirs) • Self-assessed schedule of assets & liabilities • Proof of payment (eFPS or AAB receipt)	• Deed of Extra-Judicial Settlement/Partition (EJS) or court order • “Affidavit of Small Estate” (gross ≤ ₱5 million & no real property) • Car certificates of registration, bank certificates, share certificates • Sworn declaration of real-property FMV with zonal values • Waivers of rights/claims for renouncing heirs

Filing Venue – RDO having jurisdiction over the decedent’s last residence; if none, over where the largest real property lies; if neither, RDO 39 – South Quezon City (Estate Tax Amnesty Center).
Payment Terms – Full settlement upon filing –OR– up to two equal annual installments (first upon filing, second within one year). – BIR issues a Certificate of Availment within 30 days of full payment / last installment. This instrument lifts the lien on the estate’s properties and is a registrable deed with the Registry of Deeds/LTRO.

4. Multiple Estates (Successive Deaths)

4.1 Why It Matters

When an owner dies leaving property undistributed, and an heir subsequently dies, two separate taxable estates arise. Titles often remain in the name of the original owner, clouding transfer and financing. The amnesty is a rare chance to clear all layers of unpaid estate taxes at concessional rates and without penalties.

4.2 BIR Protocol (per RMC 68-2019 & 33-2021)

Step	Estate A (earlier decedent)	Estate B (later decedent)
1 – Prepare ETAR	Compute net estate at death ₁ and pay 6 %.	Compute net estate at death ₂; include inheritance from Estate A as property in contemplation of inheritance even if still untitled.
2 – File	File ETAR A first, obtain payment form.	Can be filed simultaneously with ETAR A for practical reasons, but both must be complete.
3 – Certificates	BIR issues COA-A.	BIR issues COA-B after verifying COA-A.
4 – Transfer	• Annotate COA-A on titles. • Re-issue titles to Estate B (if still undistributed) or directly to heirs of B.	• Annotate COA-B. • Transfer to final heirs.

Chronology rule: Returns must reflect the order of deaths, but the payments may be settled in one bank trip. Valuation date: Always the original date of each decedent’s death; not the date of the later return.

4.3 Practical Scenarios

Grandfather-Father-Son chain (three estates) All deaths pre-2018. Three ETARs, three 6 % computations. Heirs may pay the aggregate in one installment schedule so long as each ETAR is receipted.
Co-ownership with Surviving Spouse Estate A (husband) is availed; surviving spouse later dies (Estate B). Only the undivided share passing to the spouse is included in Estate B. Split valuation sheets to avoid double-taxation.
Partial Previous Payments Estate A paid basic tax in 2005 but still owes surcharges/interest. The amnesty covers only the penalties for A (since basic tax is paid) – but the 6 % option is still available if cheaper.

5. Valuation Nuances

Asset Class	Valuation Rule at Date of Death
Real property	Higher of BIR zonal value or LGU fair-market value per assessor’s schedule nearest to death date. If none, latest BIR schedule.
Shares of stock	• Listed: closing price on death date. • Unlisted: book value from latest audited FS preceding death.
Personal & mixed assets	Face value (cash), NRV (inventory), appraised price (vehicles, jewelry).

TIP: When market data is unavailable, attach a CPA-certified computation or appraiser’s report to pre-empt BIR queries.

6. Installment vs. Partial Redemption

While the amnesty permits a two-year installment, it does not allow piecemeal parcel redemptions. All properties stay under estate lien until final installment clears. Heirs needing immediate title release often:

Borrow short-term at lower commercial interest;
Pay the full 6 % upfront;
Use the clean title as collateral for long-term financing.

7. Interaction with the “Regular” Estate Tax (Post-2018 Deaths)

Deaths on 1 January 2018 or later fall under TRAIN Law rates (now a flat 6 % basic estate tax). The amnesty does not apply, but:

Feature	Amnesty (pre-2018 death)	Regular Estate Tax (post-2017 death)
Basic tax	6 % net estate	6 % net estate
Penalties waived?	Yes	No
Installment privilege	≤ 2 years, no interest	≤ 2 years, interest applies
Filing deadline	14 June 2025 (hard stop)	1 year from death, extensible
Form	2118-E	1801

Planning tip: When a family faces both kinds of estates (e.g., grandfather 2016 death, father 2019 death), settle amnesty estate first to get cost-basis and facilitate computation for the post-TRAIN estate.

8. Penalty for Missed Amnesty Deadline

After 14 June 2025, any unpaid pre-2018 estates revert to:

Basic estate tax under the NIRC in effect at date of death (rates ranged 5 %– 20 % in 1998 NIRC);
25 %– 50 % surcharge;
Interest at 20 % p.a. (simple) up to 2017, then 12 % p.a. (RR 21-2018).

For many estates, the liability balloons to well over 100 % of the net estate—hence the importance of meeting the cut-off.

9. Frequently Litigated Points

Issue	BIR Position	Best-practice Defense
Undeclared real property later discovered	COA may be revoked for fraud or mistake.	Thorough cadastral search; include tax-map declarations & legacy OCTs.
Estate still under trust	Trustee can file ETAR; provide trust deed & asset list.	Attach Secretary’s Certificate for corporate trustees.
Foreign currency deposits covered by absolute secrecy	Bank may release deposit certificate only to executor/administrator under Sec 97 NIRC.	Secure written bank confirmation with waiver under RA 1405.
Chain estates with missing heirs abroad	File ETARs with notation “share held in trust for missing heir”; pay on total.	Publish notice; court-appointed guardian ad litem acceptable.

10. Road-Map Checklist for Practitioners

Family inventory meeting – map all deaths, heirs, and properties.
TIN generation – one per estate, plus any heir without TIN.
Asset valuation cut -off – gather zonal maps, assessor certifications, stock quotes.
Compute each ETAR – decide between 6 % or “penalties-only” if basic tax previously paid.
Secure funds – evaluate installments vs. bridge financing.
File ETARs chronologically – but submit as a bundle to one RDO.
Track COAs – follow up within 30 days; annotate titles promptly.
Post-distribution filings – capital-gains, DST, transfer fees on heir-to-heir conveyances (still apply even during amnesty).

11. Concluding Insights

The 2025 sunset crystallizes the “last chance” narrative of the Philippine estate-tax amnesty. For families grappling with layered estates, the relief is exponential: clearing decades of compounded penalties per estate for the price of a single-digit levy. Yet the efficiency hinges on strict sequencing, meticulous valuation, and swift coordination with financial institutions and the BIR.

Practitioners who master the choreography of multiple-estate ETARs, document integration, and installment navigation will unlock otherwise frozen land and capital—transferring dormant wealth into the productive economy before the window closes for good.

Prepared by: [Your Name], Philippine Tax & Estates Counsel (All statutes and regulations cited are in force as of 20 June 2025.)