Estate Tax Amnesty in the Philippines: The Fixed ₱10,000 Minimum under Republic Act No. 11956 (A comprehensive legal briefing, June 2025)
Abstract
Since 2019 the Philippines has allowed heirs to settle long-overdue estate taxes at a heavily reduced rate. The most recent iteration—Republic Act No. 11956 (2023) and its implementing Revenue Regulations No. 3-2023—retained the 6 % estate-tax-amnesty rate but raised the floor to a fixed ₱10,000 for every decedent’s estate. The program ran 15 June 2023 – 14 June 2025 and is now closed unless Congress grants a further extension. This article maps the entire legal landscape, explains the mechanics of the ₱10 k minimum, and offers practical guidance for practitioners and heirs.
I. Legislative History
| Year | Measure | Key points |
|---|---|---|
| 2017 | TRAIN Law (RA 10963) | Unified regular estate tax at 6 % of net estate. |
| 2019 | Tax Amnesty Act (RA 11213) + RR 6-2019 | Gave a one-time estate-tax amnesty at 6 % of net estate with a ₱5 k minimum; coverage: deaths ≤ 31 Dec 2017; deadline: 14 June 2021. |
| 2021 | RA 11569 + RR 17-2021 | Extended deadline to 14 June 2023 and moved cut-off to deaths ≤ 31 Dec 2021; minimum still ₱5 k. |
| 2023 | RA 11956 + RR 3-2023 | Final extension to 14 June 2025; kept 6 % rate but set a higher floor of ₱10 k and allowed settlement by any mode (extrajudicial, judicial, or even pending litigation). |
Why the fixed minimum rose: The Bureau of Internal Revenue (BIR) found that thousands of estates had negative or negligible net values; processing them still cost administrative resources. The ₱10 k floor was meant to offset that cost without destroying the amnesty’s attractiveness.
II. Coverage and Eligibility
Who could avail (RA 11956):
- Estates of persons who died on or before 31 Dec 2021 (citizens, resident aliens, or non-residents with Philippine assets).
- Estates previously filed but still open (e.g., some properties omitted or under dispute).
- Estates subject of pending probate or partition cases.
- Chains of succession (e.g., grandfather → father → current heirs) so long as each decedent satisfied the cut-off date.
Who could not avail:
- Properties passing under the Comprehensive Agrarian Reform Program (already tax-exempt).
- Delinquencies that became final and executory due to fraudulent declarations or tax evasion cases.
- Estates without Philippine situs assets (BIR jurisdictional rule).
III. Tax Computation
| Scenario | Computation base | Amnesty tax due |
|---|---|---|
| Positive net estate | Net estate × 6 % | Max(6 % × Net, ₱10 k) |
| Net estate zero or negative | – | ₱10 k flat |
| Estate previously partially declared | Undeclared portion × 6 % | Max(6 % × Undeclared, ₱10 k) |
Worked examples
Small estate (house only)
- FMV of house (time of death): ₱800 k
- Deductions (standard ₱1 M): ₱1 M
- Net estate: ₱0 → Tax = ₱10 k
Medium estate
- Gross: ₱4 M | Deductions: ₱1 M → Net: ₱3 M
- 6 % of ₱3 M = ₱180 k (> 10 k) → Tax = ₱180 k
Chain succession
- Two deceased (mother 2010, father 2019). Each must file a separate Estate Tax Amnesty Return (ETAR).
- If father’s estate netted ₱60 k only → 6 % = ₱3 600 which is below the floor → pay ₱10 k for him, plus amnesty tax for the mother’s estate.
IV. Period of Availment and Payment Flexibility
- Filing window: 15 June 2023 – 14 June 2025.
- Installments: Pay the computed amnesty tax in up to 2 years from ETAR filing without surcharges or interest. Failure to complete payment merely subjects the unpaid balance to the regular surcharge/interest regime (it does not invalidate the amnesty on amounts already paid).
- After 14 June 2025: The amnesty lapsed. Estates that failed to file now revert to the regular estate-tax rules (6 % plus penalties dating back to statutory due dates).
V. Documentary Requirements (RR 3-2023 § 7)
Estate Tax Amnesty Return (BIR Form 2118-EA) – one per decedent.
Affidavit of Self-Adjudication / Extrajudicial Settlement / Court Order.
Certified death certificate.
TIN of the estate (one-time application via eREG if none).
List of assets with fair-market-value (FMV) schedules:
- Real property: zonal or LGU schedule of values at time of death.
- Shares: book value per latest FS nearest to date of death.
Proof of valuation (BIR zonal valuation print-out, Treasurer’s certification, audited FS, etc.).
Official receipts / deposit slips showing payment of the amnesty tax (and Documentary Stamp Tax and transfer fees, which are not covered by the amnesty).
Secretary’s Certificate if corporate shares belong to a family-owned corporation.
Tip: RR 3-2023 allows an Acknowledgment-Receipt in lieu of an eCAR when court proceedings prevent immediate transfer—useful if the settlement is still contested.
VI. Procedural Roadmap
| Stage | What to do | Where |
|---|---|---|
| 1 | Gather documents, secure asset valuation dates. | LGUs, PSA, corporations |
| 2 | Obtain estate TIN. | BIR eREG |
| 3 | File ETAR + attachments and pay amnesty tax. | RDO covering decedent’s last residence; payment through AABs, G-Cash, or eFPS |
| 4 | Receive Acceptance Payment Form (APF). | BIR counter |
| 5 | Within ~1-2 weeks, RDO issues electronic Certificate Authorizing Registration (eCAR) or Acknowledgment-Receipt. | RDO |
| 6 | Present eCAR to Registry of Deeds, LTO, Bureau of Customs, SEC, etc., for actual transfer of titles/registrations. | Concerned agency |
The entire process is administrative; no court appearance is required unless a probate case is already pending.
VII. Rights, Immunities, and Limitations
- Immunity from audit: The BIR may not investigate an availed estate for 2017 and prior years (or up to 2021 under RA 11956) except where there is fraud or misrepresentation.
- Administrative and criminal penalties waived for the covered taxes.
- Civil cases (e.g., partition suits) are unaffected; amnesty settles only the tax liability, not ownership disputes.
- Documentary Stamp Tax, local transfer tax, and registration fees are outside the amnesty—budget for them separately.
- False declaration voids the amnesty and revives the full tax, penalties, and criminal liability.
VIII. Frequently-Misunderstood Points
| Myth | Reality |
|---|---|
| “It’s a blanket ₱10 k no matter how big the estate.” | No. The ₱10 k is only a floor. If 6 % of the net estate exceeds ₱10 k, you pay the higher amount. |
| “I can still file after 14 June 2025 with penalties.” | No. Once the window closed, the amnesty itself disappeared; you revert to the TRAIN 6 % regular estate tax plus surcharges/interest from the original due date. |
| “eCAR automatically transfers the title.” | No. The eCAR is merely tax clearance; you still need to process transfer with the Registry of Deeds/LTO and pay their fees. |
IX. What Happens Now (Post-Deadline, June 2025)
- Late estates must use the regular estate-tax system (6 %, 25 % surcharge, 12 % annual interest).
- Legislative outlook: Several House bills (e.g., HB 8968, HB 9332) propose another extension or permanent amnesty mechanism, but none has progressed beyond committee as of 16 June 2025.
- Administrative leniency: The BIR has no authority to accept late amnesty filings without a new law; Circulars cannot override RA 11956’s sunset clause.
X. Practical Guidance for Practitioners
- Archive proofs of timely filing—banks purge e-payment records after five years.
- Chain of succession: File chronologically (earliest decedent first) to avoid valuation clashes.
- Installment strategy: Front-load 20-30 % to obtain the eCAR quickly, then stretch the balance over the two-year grace period.
- Use the “negative/zero” net-estate route only if defensible; the BIR now cross-checks LGU property values and SEC asset registers.
- Coordinate with LGUs in advance—some Treasurers require the eCAR and proof of estate-tax payment before accepting local transfer-tax payment.
XI. Conclusion
The fixed ₱10,000 minimum under RA 11956 struck a balance between administrative efficiency and taxpayer relief, especially for heirs dealing with modest or even insolvent estates. Although the program sunsetted on 14 June 2025, its two-year run resolved millions of dormant property titles and injected liquidity into the real-estate market. Unless Congress enacts another extension, practitioners must once again navigate the regular TRAIN-era estate-tax regime—proof that amnesties, however generous, are truly limited-time opportunities.
Disclaimer: This article is for informational and academic purposes only and is not a substitute for individualized legal or tax advice. Always verify current BIR issuances and consult qualified counsel before acting.