Estate Tax Amnesty (Philippines): Rules and Requirements for Estates Under ₱5 Million

Executive summary. The Philippines’ Estate Tax Amnesty (ETA) lets heirs settle unpaid estate taxes of decedents who died on or before 31 May 2022 at a single rate of 6% of the net estate (computed as of the decedent’s date of death), with surcharges and interest waived. It also streamlines the issuance of the Certificate Authorizing Registration (CAR/eCAR) needed to transfer titles. For deaths on or after 1 January 2018, the ordinary (non-amnesty) estate tax is also 6% of the net estate—but crucially, TRAIN Law deductions (notably the ₱5,000,000 standard deduction and up to ₱10,000,000 family home deduction) mean many estates at or below ₱5,000,000 owe no basic estate tax, though filing is still needed to obtain a CAR/eCAR.

Timeframe note. The most recent extension under law set the ETA availment deadline at 14 June 2025. If you are reading this after that date, verify whether a new law or regulations have reopened or extended the program; otherwise, settle under the regular estate tax rules.

1) Who can avail and what estates are covered

Who may apply: The executor/administrator named in a will or appointed by court, or in practice any heir, legal representative, or transferee authorized by the heirs.
Coverage (ETA): Estates of persons who died on or before 31 May 2022 with unpaid estate tax (whether or not a return was filed, and including estates with assessments or delinquencies).
Effect of availment: Upon full and timely payment and acceptance, the estate gains immunity from civil, criminal, and administrative penalties relating to the covered estate tax period, and the BIR issues (after documentary review) the CAR/eCAR to permit transfer of properties to heirs.

Not a tax holiday on transfers. Real property transfers still require a CAR/eCAR; the ETA (or regular estate tax) is what unlocks that.

2) Tax base and rate—how the 6% is computed

A. Under the Estate Tax Amnesty (ETA)

Rate: 6% of the net estate as of the date of death.
Net estate = Gross estate (all properties, tangible/intangible, worldwide for residents; Philippine-situs property for non-residents) minus allowable deductions under the law in force on the date of death.
Penalties/interest: Waived under the ETA; only the 6% amnesty tax is paid.
Installments: Payment may be allowed by installment (without surcharge/interest) within two (2) years from the statutory due date, subject to the program’s rules. The CAR/eCAR is generally issued once the ETA liability is fully paid.

B. Under the ordinary (non-amnesty) estate tax (TRAIN Law, deaths on or after 1 Jan 2018)

Rate: 6% of net estate.
Key deductions (post-TRAIN):
- Standard deduction: ₱5,000,000
- Family home deduction: Up to ₱10,000,000 (value of the decedent’s interest in the family home)
- Surviving spouse’s share: Exclude the surviving spouse’s half of conjugal/absolute community property before computing deductions
- Claims, mortgages, losses, and other statutory deductions (subject to documentary substantiation)
Deadline: Return within one (1) year from death (extensions possible for meritorious cases); payment by due date (extensions to pay may be granted in limited cases).

3) Estates under ₱5,000,000: what usually happens

For deaths on or after 1 Jan 2018, many estates at or below ₱5,000,000 wind up with zero basic estate tax after deductions. You still need to file to obtain the CAR/eCAR and transfer titles.

Illustrations (post-TRAIN rules)

Single decedent, exclusive property worth ₱5,000,000: Net estate ≤ ₱0 after the ₱5,000,000 standard deduction → ₀ tax (but file to get CAR/eCAR).
Conjugal property worth ₱6,000,000 total: Surviving spouse share ₱3,000,000; decedent’s gross ₱3,000,000 → ₀ tax after standard deduction; still file.
Family home worth ₱8,000,000 + ₱1,000,000 bank deposits (conjugal): After spouse split, decedent’s share of home (₱4,000,000) is fully covered by the family home deduction (up to ₱10,000,000), plus standard deduction available for other assets → ₀ tax; still file.

If the death was before 2018

Pre-TRAIN rules apply to compute the net estate (different deduction scheme). If the estate remains unpaid and the decedent died on or before 31 May 2022, ETA can be used: pay 6% of the resulting net estate, with penalties waived.

4) Documentary requirements (what to gather)

Expect the BIR to ask for identity, valuation, ownership, and deduction papers. For small estates, the set is the same in principle; what changes is the volume of assets and the valuation work.

Core identity & authority

Death Certificate (PSA or civil registrar copy)
Heirs’ IDs; Taxpayer Identification Numbers (TINs) of the decedent, the estate (obtain a new TIN for “Estate of…”) and the heirs
Proof of marital regime (marriage certificate; pre-/post-nuptial agreement, if any)
Proof of authority to file: Will + court appointment, or notarized Extrajudicial Settlement (EJS)/Self-Adjudication under Rule 74 (with publication/bond formalities), or other court order

Assets (attach what applies)

Real property: Certified true copies of TCT/CCT, latest tax declarations (land & improvements), and zonal/fair market value references as of date of death
Bank accounts: Bank certifications of balances and withholding (as of date of death)
Securities:
- Listed shares – certification/price as of date of death
- Unlisted shares – book value per latest audited FS near date of death, plus corporate secretary certification
Vehicles: OR/CR and appraisals if required
Business interests/other intangibles: Pertinent contracts, valuations, or appraisals

Deductions (only if claimed)

Debts/mortgages: Notarized creditor certifications; loan documents showing date incurred, unpaid balance at death, and security
Unpaid taxes/claims/losses: Supporting notices/receipts
Family home: Proof of use as family home and its value at death
Expenses allowed under the applicable law at date of death (pre-TRAIN vs post-TRAIN differ)

BIR forms

Estate Tax Return (regular) or Estate Tax Amnesty Return (ETAR), in the latest BIR-prescribed format
Payment form/electronic payment confirmation
Inventory/Statement of Assets and Liabilities as of date of death
Supporting schedules (real property schedule, personal property schedule, deductions schedule)

Practical tip: Even if the computed tax is ₀, file a complete return with attachments—the CAR/eCAR won’t be issued without a compliant file.

5) Where and how to file & pay

Register the estate with the BIR (obtain a TIN for the Estate of [Decedent] at the RDO having jurisdiction over the decedent’s last residence; special rules apply for non-residents).
File the Estate Tax Return (or ETAR for ETA) with the same RDO (or as otherwise directed by the BIR).
Pay via Authorized Agent Banks, BIR Revenue Collection Officers, or BIR-accredited e-payment channels (keep the validated form/confirmation).
Submit attachments and respond to any BIR verification.
Receive the CAR/eCAR for each asset class (real property, shares, vehicles, etc.), then proceed to register transfers (Registry of Deeds, transfer agent, LTO, etc.).

6) Deadlines and timing

Regular estate tax (post-TRAIN): File within 1 year from death (extensions may be granted); pay by due date (extensions to pay may be granted in specific circumstances).
Estate Tax Amnesty: Last statutory extension set the availment deadline at 14 June 2025. After amnesty closes, unpaid estates must settle under regular rules (including surcharges and interest, unless condoned by a new law).
Issuance of CAR/eCAR: After the BIR accepts the filing and confirms payment (or full ETA payment if in installments), the RDO issues CAR/eCAR per asset.

7) Special notes for estates under ₱5,000,000

Zero-tax is common (post-TRAIN). Because of the ₱5M standard deduction and family home deduction, many ≤₱5M estates compute to ₀ basic tax.
But filing still matters. You must file to get the CAR/eCAR—registries won’t transfer titles without it.
Choosing ETA vs regular filing.
- If the death is on or after 1 Jan 2018 and you can file a complete return, regular rules often suffice (and still compute to ₀ tax).
- If the death is on or before 31 May 2022 and there are long-overdue obligations (missed deadlines, penalties), the ETA (if open) can clean the slate with a flat 6% and waived penalties.
Installments (ETA). Useful where a small estate has liquidity issues but still owes tax (e.g., pre-TRAIN deaths with smaller deductions).

8) Valuation rules at a glance

Real property: Use the higher of (a) BIR zonal value or (b) Assessor’s fair market value as of the date of death.
Listed shares: Market price as of date of death.
Unlisted shares: Book value based on the latest financials near the date of death (excluding appraisal surplus unless otherwise required).
Bank deposits: Ledger balance at date of death; withdrawals may be subject to withholding rules before CAR (banks follow BIR guidance).
Foreign assets: Include for resident citizens; Philippine-situs only for non-resident aliens (subject to treaty relief where applicable).

9) Common pitfalls (even for small estates)

Skipping the spouse’s share split. Always separate the surviving spouse’s 50% of community/conjugal property before computing the decedent’s net estate.
Underdocumenting deductions. Deductions must be substantiated (loan documents, creditor certifications, proof of family home, etc.).
Wrong valuation date. Use date-of-death values, not current or purchase price.
Not registering the estate TIN. The estate is a separate taxpayer—register it.
Incomplete asset list. If an asset is omitted, the CAR/eCAR for that asset cannot be issued. (Under the ETA, previously omitted assets could be added by amending within the availment window; outside ETA, you may need to amend and pay any incremental tax/penalties.)

10) Quick compliance checklist (≤ ₱5M estates)

☐ Get Estate TIN; verify heirs’ TINs
☐ Compile assets inventory and date-of-death valuations
☐ Separate spouse’s share (if applicable)
☐ Identify deductions and gather proofs
☐ Prepare and file the Estate Tax Return (or ETAR if using ETA)
☐ Pay tax due (if any); keep validated proof
☐ Submit attachments; address BIR queries
☐ Secure CAR/eCAR and complete title transfers

11) Frequently asked questions

Q: If our computed tax is ₱0, do we still need to file? Yes. You need a CAR/eCAR to transfer titles and close bank accounts; the BIR will not issue it without a proper filing.

Q: Our parent died years ago; can we still use the amnesty? If the death was on or before 31 May 2022 and the ETA is open under current law, you may avail by paying 6% of net estate (with penalties waived). If the ETA has closed, you must file under regular rules (surcharges/interest may apply unless a new law provides otherwise).

Q: Do we need a court case for a small estate? Not necessarily. If there is no will, no debts (or debts have been settled), and heirs are of legal age, you may execute an Extrajudicial Settlement under Rule 74 (with required publication/bond), then proceed with BIR filing.

Q: Can we pay the amnesty tax in installments? Yes—ETA permits installments within two (2) years from the due date without penalties. Title transfer generally happens after full payment and issuance of CAR/eCAR.

12) Bottom line for ≤ ₱5M estates

For 2018-onward deaths, ₱5M standard plus ₱10M family home deduction often yields ₀ tax, but filing is mandatory to transfer assets.
For older, unpaid estates (death on or before 31 May 2022), the Estate Tax Amnesty—when open—offers a clean, penalty-free settlement at 6% of net estate and a clearer path to a CAR/eCAR.
Documents and valuation are the heavy lift even for small estates; prepare them well to avoid delays.

This article is for general information only and is not a substitute for legal or tax advice specific to your facts. For live deadlines or updated forms, confirm with the BIR or a Philippine tax professional.