Estate Tax Amnesty in the Philippines: Everything You Need to Know Before the 14 June 2025 Deadline
1. What Is Estate Tax and Why an Amnesty Exists
The Philippine estate tax is a transfer tax imposed on the privilege of transmitting property from a deceased person to his or her heirs or beneficiaries. Since the TRAIN Law (Republic Act 10963) took effect in 2018, the regular rate has been 6 % of the net estate, plus interests, surcharges, and compromise penalties if unpaid on time.
For decades, costly penalties kept many heirs from settling estates, leaving titles “frozen” and assets economically idle. Congress therefore enacted a series of estate tax amnesties so families could pay a final 6 % on the net undeclared estate (subject to a ₱5,000 minimum per estate) without the prohibitive penalties or criminal exposure that normally attach to late filing.
2. Evolution of the Estate Tax Amnesty Law
| Law | Key Features | Availment Period | Coverage Cut-off (date of decedent’s death) |
|---|---|---|---|
| Republic Act 11213 (Estate Tax Amnesty Act) – signed 14 Feb 2019 | • 6 % amnesty rate • Immunity from civil, criminal & administrative cases for estate tax • Installments within 2 years of filing |
15 June 2019 – 14 June 2021 | Deaths on or before 31 Dec 2017 |
| Republic Act 11569 – approved 30 June 2021 | Extended availment by 2 years | 15 June 2021 – 14 June 2023 | Same cut-off (31 Dec 2017) |
| Republic Act 11956 – signed 5 Aug 2023 | • Final extension of availment to 14 June 2025 • Expanded coverage to deaths on or before 31 Dec 2022 • Simplified documentary requirements (e.g., optional tax-clear death notice, acceptance of photocopies) • Longer installment window: up to 2 years from filing without interest or surcharge |
15 June 2023 – 14 June 2025 | Deaths on or before 31 Dec 2022 |
Deadline to remember: Friday, 14 June 2025. After that date, the ordinary estate-tax rules—including 25 % surcharge, 12 % annual interest, and potential criminal prosecution—will apply.
3. Who May Avail
- Executor or administrator named in the will / appointed by the court
- Legal heirs, transferees, or beneficiaries where no executor/administrator is appointed
- Authorized representatives acting under a duly notarised Special Power of Attorney
4. Coverage and Exclusions
| Covered | Not Covered |
|---|---|
| • All estate tax liabilities of decedents who died ≤ 31 Dec 2022, whether or not an estate tax return was previously filed. • Estates already issued a notice of assessment, or even under audit, provided the assessment is not final and executory. • Co-ownership properties, including agricultural and idle lands. |
• Delinquent estates finally adjudicated as tax evasion or fraud (final and executory judgment). • Properties involved in pending cases before the Sandiganbayan, DOJ, or courts involving unexplained/ill-gotten wealth. • Properties subject to civil or criminal forfeiture proceedings under the AMLA or related special laws. |
5. Tax Base and Computation
- Start with the gross estate at fair-market value (FMV) at the time of death.
- Deduct allowable deductions (standard deduction, family home, funeral, medical, etc.) to arrive at the net estate.
- Apply 6 % to the net estate (or to the undeclared/net taxable portion if a partial return was previously filed). Minimum amnesty tax: ₱5,000 per estate.
Installment Privilege
Under RA 11956 you may pay the computed amnesty tax in installments within 2 years from filing the Estate Tax Amnesty Return (ETAR). No interest or penalty accrues within that period. Failure to complete payment, however, revokes the amnesty and all regular taxes plus penalties become due.
6. Step-by-Step Availment Guide
| Step | Action | Key Forms / Documents (updated by RR 17-2023 & RMC 77-2023) |
|---|---|---|
| 1 | Prepare estate settlement instrument (e.g., Extra-Judicial Settlement of Estate) and have it notarised. | – Deed of Extra-Judicial Settlement (EJS) or Court-approved Partition – Death Certificate |
| 2 | Gather asset documents. | – Certified true or photocopy: Transfer Certificates of Title (TCT)/OCTs, Condominium Certificates, Tax Declarations (for untitled lands), OR/CR for vehicles, stock certificates, bank statements, etc. |
| 3 | Compute net estate & 6 % tax. | – BIR Worksheet (Annex F) – Zonal/assessed values or FMV schedules |
| 4 | Fill out BIR Form 2118-EA (Estate Tax Amnesty Return) & BIR Form 0605 (Payment Form). | – One ETAR per estate, even if multiple properties in different RDOs |
| 5 | File & pay at the Appropriate BIR Revenue District Office (RDO). | – Present ETAR, EJS/partition, IDs of heirs, SPA, and attachments. – Pay in cash, manager’s cheque, or eFPS / ePAY. |
| 6 | Receive Certificate of Availment (CA) & eCAR (electronic Certificate Authorizing Registration). | – Issued within 15 working days for complete submissions. – Present eCAR to Registry of Deeds / LTO / SEC for title transfer. |
Pro tip: Time-barred real-property taxes or capital-gains taxes (for transfers after amnesty) are separate obligations and must still be settled with LGUs/LRA.
7. Effects and Immunities
Once the amnesty tax and filings are complete:
- All estate tax, penalties, surcharges, and interests are deemed paid.
- Civil, criminal, and administrative cases related to unpaid estate tax (pre-2022 deaths) are terminated.
- BIR issues an eCAR, clearing the way for title transfer, subdivision, or mortgage of the inherited property.
- Heirs obtain a clean tax slate for the estate and may subsequently dispose of property without lingering estate-tax issues.
8. Consequences of Missing the 14 June 2025 Deadline
- Reversion to the ordinary estate-tax regime: 6 % basic tax plus 25 % surcharge plus 12 % annual interest (effectively > 18 % in the first year).
- Potential compromise penalties and even criminal prosecution if the BIR initiates tax-evasion cases.
- Land / vehicle titles stay in the deceased’s name, blocking sales, mortgages, or development projects.
- Higher disputes among heirs and possible escheat proceedings where the State takes ownership due to intestacy lapse.
9. Practical Tips for Heirs and Practitioners
- Start early. Registry offices, LGUs, and BIR RDOs experience heavy volume in the months before a statutory deadline.
- Secure substitutes for lost titles (e.g., obtain Owner’s Duplicate Certificate re-issuance) well before filing.
- Verify zonal values with the RDO to avoid recomputation delays.
- Use the two-year installment if liquidity is an issue, but diarise the payment schedule—one missed installment voids the amnesty.
- Coordinate simultaneously with banks and stock transfer agents to value intangible assets as of death.
- Check foreign-situs assets. Only Philippine property is taxable, but foreign estates often affect partition.
- Clarify small estates. Estates ≤ P200,000 after deductions may be exempt under the Tax Code; nonetheless, filing an ETAR gives formal closure.
10. Key BIR Issuances to Consult
| Reference | Subject |
|---|---|
| Revenue Regulations (RR) 6-2019 | Implementing rules for RA 11213 |
| RR 17-2021 & RR 3-2022 | Amendments following RA 11569; documentary streamlining |
| RR 17-2023 | Rules implementing RA 11956; extended deadline and coverage |
| Revenue Memorandum Circular (RMC) 77-2023 | FAQs on extended estate tax amnesty |
| RMC 23-2024 | Clarificatory guidelines on installment payments and eCAR issuance |
(Exact titles/numbers may be updated by BIR; always reference the latest consolidated regulations.)
11. Frequently Asked Questions
| Question | Short Answer |
|---|---|
| May I amend a previously filed Estate Tax Amnesty Return? | Yes. File a new ETAR marked “Amended,” attach an explanation, and pay any difference before 14 June 2025. |
| Does the amnesty cover donor’s tax on inter-vivos gifts? | No. The law is limited to estate tax on transfers triggered by death. |
| What if the decedent had no Taxpayer Identification Number (TIN)? | Obtain a “Non-TIN” mark on the ETAR or apply for an estate TIN using BIR Form 1904. |
| Can I still avail if a court case on estate partition is pending? | Yes, so long as the estate tax itself is not subject to a final tax-evasion judgment; submit the latest court order or compromise agreement. |
12. Bottom Line
The Estate Tax Amnesty Law’s “last call” ends on 14 June 2025. For heirs of persons who passed away on or before 31 December 2022, this is an extraordinary chance to:
- legalize ownership of inherited assets,
- avoid ballooning penalties, and
- unlock economic value long trapped in unsettled estates.
With no indication of another extension, families should treat this as the final window to settle once and for all. Begin assembling documents, consult a tax professional or notary when necessary, and file early—well before the queues form at the BIR. After all, estate planning is as much about peace of mind for those who passed as it is about the living who carry their legacy forward.