Providing an Estate Tax Amnesty Guide

The user asked for a comprehensive legal article about the Estate Tax Amnesty in the Philippines. It's based on RA 11213, which started the Tax Amnesty Act in 2019 and covered amnesty for 2019-2021. The application period was extended twice, first by RA 11569 to June 2023 and later by RA 11956 to June 2025. I'll cover details like rates, requirements, procedures, necessary documents, forms, and any other relevant BIR issuances connected to it.

Verifying Estate Tax Amnesty Details

RA 11213 (2019) started the Estate Tax Amnesty, with extensions issued via RR 17-2021 and RR 6-2023 by BIR, and amended by RA 11956, signed in 2023. Key changes include extending filing until June 14, 2025 and shifting the death cutoff date to December 31, 2022 (previously December 31, 2021). I must ensure I'm honoring those adjustments, particularly about documents needed, eligible filers, and the filing procedures. Plus, I'll touch on payment options, deadlines, and assorted forms like BIR Form 2118-EA.

Clarifying Estate Tax Amnesty Details

RA 11956 extends the estate tax amnesty period until June 14, 2025, and includes estates of decedents who died on or before December 31, 2022. The previous coverage had a cutoff of December 31, 2017. I’ll need to clarify the eligibility requirements, documentation, and tax rates, including details on filing, payment methods, and documents to submit. Plus, it's crucial to mention the consequences for failing to comply, estate types, and available deductions, all while ensuring the article emphasizes the importance of official BIR guidelines for accuracy.

Thought for 1m 12s

Estate Tax Amnesty Application Guide (Philippines)

Updated as of 7 May 2025

1 | Why an Estate Tax Amnesty?

The estate tax is a transfer tax imposed on the net value of a deceased person’s estate before the heirs can legally take possession. For decades, many estates—especially those of modest families—remained unsettled because the cumulative basic tax, interest (currently 12 % p.a.) and surcharges (25 % or 50 %) quickly out-stripped the value of the property. Congress therefore enacted an Estate Tax Amnesty to:

give heirs a clean slate at a flat, affordable rate;
unclog the courts and the Bureau of Internal Revenue (BIR) of decades-old cases; and
return idle land and other assets to the formal economy, enabling heirs to sell, mortgage or develop them.

2 | Legislative Timeline

Law	Key points	Availment window¹	Estates of decedents who died on or before
RA 11213 (Tax Amnesty Act), signed 14 Feb 2019	Introduced a one-time estate tax amnesty at 6 % of the net estate or ₱5,000 per estate, whichever is higher	15 Jun 2019 – 14 Jun 2021	31 Dec 2017
RA 11569 (1st extension), 24 Jun 2021	Extended the filing/payment deadline by 2 years	15 Jun 2021 – 14 Jun 2023	31 Dec 2017 (unchanged)
RA 11956 (2nd extension & expanded coverage), 5 Aug 2023	• New deadline 14 Jun 2025 • Cuts-off estates of decedents who died on or before 31 Dec 2022²	5 Aug 2023 – 14 Jun 2025	31 Dec 2022

¹ Counted from effectivity of the corresponding BIR regulations. ² Congress originally proposed 31 Dec 2021; the final bicameral version settled on 31 Dec 2022. Always confirm the exact cut-off in the text of RA 11956 and Revenue Regulations No. 6-2023.

Implementing Revenue Regulations & Circulars (non-exhaustive)

RR 6-2019, RMC 33-2019, RMC 47-2019 – first rules & FAQs
RR 17-2021 – harmonised procedures after RA 11569
RR 6-2023, RMC 24-2023 – rules after RA 11956 (forms, eCAR templates, installment mechanics)

3 | Who May Avail?

Heirs, administrators, or executors of estates of decedents who died on or before 31 Dec 2022 and whose estate taxes remained unpaid as of that date.
Estates with pending BIR assessments or court cases (the amnesty wipes out civil, criminal and administrative liabilities once validly availed).

Who are not covered?

Properties subject to Anti-Money Laundering Act (RA 9160) cases, tax evasion cases, or those with final and executory judgments for fraudulent estate declarations.
Estates of decedents who died after 31 Dec 2022—these must file the regular estate tax return within one year from death and pay at 6 % of the net estate plus interest if late.

4 | Tax Base & Rate Under the Amnesty

Particular	Ordinary estate tax	Estate Tax Amnesty
Rate	6 % of net estate	6 % of net estate OR ₱5,000 (whichever is higher)
Interest & surcharges	12 % p.a. interest + 25 % (or 50 %) surcharge	None
Deductions	Itemised plus ₱5 M standard, ₱10 M family-home cap (TRAIN Law)	Still allowed —compute net estate first, then apply 6 %
Audit & further assessment	Possible within limitation period	BIR barred from further audit once eCAR issued

Valuation rules (same for ordinary & amnesty)

Real property: Higher of BIR zonal value or LGU fair-market value as of the decedent’s date of death.
Shares of stock: Book value (for unlisted) or closing price (for listed) nearest the date of death.
Personal property (cash, jewellery, vehicles, etc.): Actual or appraised value.

5 | Documentary Requirements

Always use the latest BIR checklists (the forms for RA 11956 are labelled “EA-2023”).

Core documents	Common supporting papers
BIR Form No. 2118-EA (Estate Tax Amnesty Return) in three copies	PSA-issued Death Certificate (original & 2 photocopies)
Asset & Liability Inventory (sworn & itemised)	TINs of decedent & heirs (secure via eREG if none)
Proof of valuation (zonal/Tax Dec, CAR CR, stock certificates, bank statements)	Notarised Extra-Judicial Settlement (EJS) or Court-approved Partition
Notarised “Owner’s Declaration” (per RMC 24-2023)	ID cards of witnesses & heirs
Official Receipt/eFPS confirmation of 6 % payment	Special Power of Attorney if filing through representative

*Small estates (gross value ≤ ₱5 M) may use the expedited procedures under the Rules on Summary Settlement of Small Estates (A.M. No. 23-06-01-SC, 11 Apr 2023), but the tax angle still follows the amnesty rules above.*

6 | Step-by-Step Filing Procedure (2024-2025 Cycle)

Gather & organise all titles, certificates, IDs and valuation documents.
Secure TINs for decedent and each heir (one-day processing at any RDO).
Prepare & notarise the EJS / court settlement. For minors, have the court appoint a guardian.
Compute the net estate (assets – allowable deductions) and multiply by 6 %. If this is below ₱5,000, pay the minimum ₱5,000.
Fill out BIR Form 2118-EA and the sworn Asset & Liability Inventory.
Pay the tax:
- Over-the-Counter at an Authorized Agent Bank (AAB) of the RDO, or
- via eFPS/eBIRForms (GCash, PayMaya, debit/credit card gateways).
Submit filing package to the ONE-TIME TRANSACTION (ONETT) Counter of the RDO that has jurisdiction over:
- the decedent’s residence at death, or
- the location of the highest-valued immovable property if non-resident.
BIR processing:
- Examination of completeness (3-10 working days typical if documents are in order).
- Issuance of the electronic Certificate Authorizing Registration (eCAR)—one eCAR per property class (land, condo, vehicle, shares, etc.).
Transfer & registration: Present the eCAR to the Registry of Deeds/LTO/LTFRB, SEC, banks, etc. to retitle the assets in the heirs’ names.

Installment option: If liquidity is an issue, pay at least 50 % upon filing and the balance within two years, BUT no further transfer can be registered until full payment and final eCAR issuance.

7 | After You Receive the eCAR

Real property:
- Register the EJS and eCAR with the Registry of Deeds (RD).
- Pay RD fees, transfer tax (0.5–0.75 % of zonal value), and local documentary stamp tax.
- Secure new OCT/TCT/CCT and have tax declaration transferred at the City/Municipal Assessor.
Motor vehicles: Present eCAR, original OR/CR and EJS to the LTO for change of ownership.
Shares of stock: For publicly listed shares, lodge with your broker; for close corporations, file with the SEC’s Company Registration and Monitoring Department.
Bank deposits: Banks require the eCAR plus an estate settlement agreement before releasing or re-titling the account.

8 | Frequently Encountered Issues & Practical Tips

Issue	Tip / Remedy
Lost titles or missing tax declarations	File Affidavit of Loss; secure RD certified true copy; request certified Tax Dec from City Assessor.
Unknown property values	Ask the RDO for the latest zonal values schedule; for shares, get a certified book-value certificate from the corporate treasurer.
Dispute among heirs	The amnesty does not resolve ownership disputes; mediation or probate court must first decide, then file once settlement is final.
Heirs abroad	Execute SPA/apostille authorising a Philippine representative; attach apostilled IDs.
Estate has no cash	Apply for the 2-year installment before filing; consider selling a portion of property once partial eCARs are issued.

9 | Penalties for Non-Availment (Post-14 Jun 2025)

Estate tax remains 6 % of net estate + 12 % annual interest + surcharge (25 %/50 %).
No transfer can be registered; heirs cannot sell or mortgage the property.
BIR may issue a Notice of Tax Lien and levy property to satisfy unpaid taxes.
Criminal prosecution for tax evasion is possible (but rare) in large, willfully concealed estates.

10 | Comparison at a Glance

Item	Regular Estate Tax (no amnesty)	Estate Tax Amnesty (RA 11213 as amended)
Base year	Date of death	Same
Rate	6 %	6 % / ₱5,000 minimum
Interest & surcharge	Yes	None
Audit risk	Yes, 3 yrs (ordinary) / 10 yrs (fraud)	None once eCAR issued
Period to file	1 yr from death	Until 14 Jun 2025 only
Installment	2 yrs (bank-guaranteed)	2 yrs (no guarantee required)

11 | Key Take-aways

Hard deadline: 14 June 2025 is statutory; another extension is politically uncertain.
Eligibility expanded: Deaths up to 31 Dec 2022 now included—many “fresh” estates qualify.
One-time opportunity: Avail now or face the regular tax plus penalties later.
Documents first, payment second: Incomplete filings stall eCAR release; invest time in gathering certified copies.
Professional help: Complex estates (e.g., foreign assets, corporate shares, ongoing land registration) benefit from a tax lawyer or CPA, but small-to-medium estates often succeed through the ONETT counter using BIR’s published checklists.

12 | Final Reminder

This guide reflects the law and BIR rules as of 7 May 2025. Revenue Regulations, zonal values and checklists change from time to time; always verify the latest issuances on the BIR website or at your Revenue District Office. When in doubt, obtain a written ruling or seek professional advice—especially for estates involving minors, foreign beneficiaries, or assets in multiple jurisdictions.

— End of Guide