Estate Tax Amnesty in the Philippines — Availing Before the 14 June 2025 Deadline Even Without an Extrajudicial Settlement

A practical, statute-based guide for heirs, executors, buyers, and counsel.

1. Background & Legislative History

Law	Date Approved	Key Points	Original/Current Deadline
Republic Act (RA) 11213 – Tax Amnesty Act	14 Feb 2019	Introduced an estate-tax amnesty at a flat 6 % rate on the net estate of decedents who died on or before 31 Dec 2017.	15 June 2019 – 14 June 2021
RA 11569	28 June 2021	Added two (2) years to the filing window, keeping the same 2017 cut-off date.	14 June 2023
RA 11956	05 Aug 2023	Game-changer: 1. Extends the window to 14 June 2025 2. Moves the cut-off to deaths on or before 31 May 2022 3. Lets heirs file and pay first even without an Extrajudicial Settlement (EJS), subject to an undertaking to submit the settlement within two (2) years from payment.	14 June 2025

Why the extra time? Congress noted that many estates are immobilised by family disputes, missing titles, or sheer cost of documentation—hence the “pay-now, fix-paperwork-later” approach of RA 11956.

2. Key Concepts

Term	Practical Meaning
Estate Tax	A transfer tax on the right to transmit property at death, imposed on the net estate (assets minus allowable deductions) and paid by the estate itself before distribution to heirs.
Extrajudicial Settlement (EJS)	A notarised agreement (or a Deed of Absolute Sale, Waiver, etc.) whereby heirs partition the estate without going to court. Recorded with the Register of Deeds (RD) and published once a week for three consecutive weeks in a newspaper of general circulation.
Declaration of Heirs	A simple notarised list of heirs and properties—accepted temporarily under RA 11956 when the heirs are not yet ready to execute an EJS.
Undertaking	The BIR form where the heirs commit to file the final settlement/court order within two years; when filed, it completes the requirements so that the tax clearance becomes final.

3. Who May Avail?

Decedent must have died on or before 31 May 2022 (inclusive).
Estate has not yet paid or has deficiencies in estate tax.
Heir(s), executor, administrator, buyer or any transferee can apply.
Both resident and non-resident decedents are covered; for non-residents, only Philippine-situs assets are declared.

Not covered: Estates with final and executory tax fraud cases or those under the jurisdiction of the Presidential Commission on Good Government (PCGG).

4. How Much Is the Amnesty Tax?

Scenario	Tax Due
Estate with positive net estate value	6 % of the net estate (assets – deductions)
Estate where net estate cannot be determined	6 % of total gross estate
Estate with zero or negative net estate	Flat ₱5,000

No penalties, interest, or surcharge will be imposed; criminal and civil cases for failure to file/ pay estate tax are deemed abated upon full compliance.

5. Documentary Requirements

If heirs already have an EJS / Court Order	If heirs have NO EJS yet (RA 11956 route)
1. BIR Form 2118-E (Estate Tax Amnesty Return, “ETAR”)	1. BIR Form 2118-E
2. Notarised EJS or final court order	2. Declaration of Heirs (notarised)
3. Schedule of Assets & Liabilities	3. Schedule of Assets & Liabilities
4. Certified true copies of Transfer Certificates of Title (TCTs), Condominium Certificates (CCTs), tax declarations, OR/CR for vehicles, bank statements, etc.	4. Same supporting ownership docs as left column
5. Official Receipt of the 6 % tax + ₱15 Documentary Stamp Tax	5. Official Receipt of the tax + ₱15 DST
—	6. Undertaking to submit the EJS / court order within two years from the ETAR filing date

Tip: Even under the “no-EJS-yet” option, the BIR will issue a Certificate of Availment. Titles, however, cannot be transferred at the RD until the EJS/court order is supplied.

6. Step-by-Step Procedure (No-EJS Route)

Gather minimum documents (death certificate, proof of ownership, IDs of heirs).
Compute 6 %: Apply to net or gross estate.
Prepare Form 2118-E + Declaration of Heirs + Undertaking.
Pay the tax at the Authorized Agent Bank (AAB) or Revenue Collection Officer.
File the dossier with the Revenue District Office (RDO) where the decedent was domiciled (or where the largest asset is, if non-resident).
Receive BIR Certificate of Availment (usually within 15 working days).
Within 24 months, submit the EJS (or court order) plus proof of publication; secure a Tax Clearance and proceed to:
- Register of Deeds for real property titles;
- Land Transportation Office for vehicles;
- Stock transfer agent or corporate secretary for shares;
- Banks for deposit releases.

7. Practical Illustrations

Situation	Can the heirs pay now & settle later?	Special Notes
Only child lives abroad; siblings contesting shares	Yes	One heir may pay the 6 % on total estate and file a Declaration of Heirs; EJS to follow after family agreement.
Title lost; Owner’s Duplicate missing	Yes	File ETAR with photocopy of RD-certified TCT. Request re-issuance or reconstitution while waiting.
Pending court case to nullify a will	Still Yes	RA 11956 allows availment “without prejudice” to ongoing litigation. The 6 % simply fixes BIR liability; partition awaits the court.
Estate already assessed and garnished by BIR in 2015	Yes	Amnesty extinguishes prior assessments once the 6 % and supporting docs are accepted.

8. Common Pitfalls

Late submission of EJS → If filed after two years, the BIR can revoke the availment, re-impose graduated estate tax, and assess penalties.
Undeclared assets discovered later → Heirs must file an amended ETAR (within the same amnesty window) or risk deficiency tax at ordinary rates.
Incorrect RDO → Filing at the wrong district stalls the process; the 6 % payment may have to be transferred internally, adding months of delay.
Failure to publish EJS → RD will refuse registration even if BIR is satisfied.

9. Frequently Asked Questions

Q	A
*Is a Declaration of Heirs* enough to transfer titles?**	No. It is a stop-gap for BIR purposes. The Register of Deeds still requires a full EJS or court-approved partition, plus proof of publication.
Can we use the old BIR Form 2118-E from 2019?	No. BIR Revenue Regulations 15-2023 introduced a revised ETAR incorporating the “undertaking” option.
Do we pay again when we submit the EJS later?	No. The initial 6 % covers the entire estate; only Documentary Stamp Taxes on real-property deeds (₱15) and RD fees remain payable.
What if the heirs miss the 14 June 2025 deadline?	The estate reverts to the graduated estate-tax schedule (Sec. 84, NIRC) plus 25 % surcharge and 12 % annual interest—and the BIR may file criminal charges for willful failure to pay. Another congressional extension is never guaranteed.

10. Timeline at a Glance

31 May 2022   | Last date of death covered
──────────────┼──────────────────────────────────────────────
05 Aug 2023   | RA 11956 signed
──────────────┼──────────────────────────────────────────────
14 Jun 2025   | FINAL date to file and pay 6 % (w/ or w/o EJS)
              |   ↓
+ 2 years     | Deadline to submit EJS / court order
──────────────┴──────────────────────────────────────────────
14 Jun 2027   | Last day to complete documentary compliance

11. Strategic Take-Aways

Settle the tax first — Even if family negotiations are deadlocked, paying the 6 % freezes penalties and buys two more years.
Inventory everything — BIR assessments after 2025 will pierce any undisclosed assets.
Start the title-clean-up now — Lost titles, unregistered deeds, and estate loans take months to fix; use the amnesty period efficiently.
Coordinate with the RD early — Each registry has its own checklist; avoid surprises after you have already paid.
Keep proof of payment indefinitely — Tax amnesty availment is final and irrevocable once perfected, but documentary mistakes can resurface years later during sale or due diligence.

12. Final Word

RA 11956 is likely the last lifeline for decades-old estates. Its greatest innovation—allowing availment without an Extrajudicial Settlement—removes the single biggest bottleneck: family disagreement. Heirs who seize the window on or before 14 June 2025 lock in a 6 % total estate tax, wipe the slate clean of penalties and criminal exposure, and secure a clear path to property transfer once the partition is ready.

This article is for general information and is not a substitute for personalised legal advice. For complex estates, consult tax counsel and engage a licensed Philippine notary and surveyor to ensure error-free documentation.