Estate Tax Payment Timeline in the Philippines
A comprehensive legal guide as of 1 June 2025
1. Statutory Backbone
| Instrument | Key Provisions on Timing |
|---|---|
| National Internal Revenue Code (NIRC), 1997, as last amended by RA 10963 (TRAIN, 2018) | §90 (Return to be filed within 1 year), §91 (Tax due upon filing; discretionary extensions), §248–§249 (surcharge & interest) |
| Revenue Regulations (RR) 12-2018, 17-2021, 32-2020, 12-2023, et al. | Implement TRAIN rate change and digital payment windows |
| RA 11213 Estate Tax Amnesty Act (14 Feb 2019) & RR 6-2019 | Amnesty for estates of decedents who died on or before 31 Dec 2017; original window: 15 June 2019 – 14 June 2021 |
| RA 11569 (2021) extended the amnesty to 14 June 2023 | |
| RA 11956 (13 Sep 2023) & RR 17-2023 further extended it to 14 June 2025 and broadened coverage to deaths on or before 31 May 2022 |
2. Who Must File & Pay, and When?
| Scenario | Mandatory Deadline |
|---|---|
| Ordinary estates (no amnesty) | File & pay BIR Form 1801 within one (1) year from the decedent’s date of death. |
| With valid BIR‐approved extension to FILE (§90[B]) | Commissioner may grant ≤ 30 days beyond the 1-year mark for meritorious causes (e.g., lost records, calamity). |
| With valid BIR‐approved extension to PAY (§91[D]) | Up to 2 years (extrajudicial settlement) or 5 years (judicially settled estates). Tax is still computed on values at death; interest is suspended during the extension period. |
| Installment without interest (§91[A]) | Heirs may pay in up to two (2) equal installments within two (2) years from the statutory due date, provided a notice of installment is attached to the initial return. |
| Estate Tax Amnesty window (RA 11956) | File & pay the amnesty return any time up to 14 June 2025. |
3. Building the Clock: Step-by-Step Timeline
Date of Death (Day 0). Start of the one-year countdown.
Within 30 days (good practice, not a statutory limit)
- Secure Death Certificate, request Certified True Copies of titles, and appoint an executor or administrator.
By Day 365 (statutory limit)
- File BIR Form 1801 and pay the 6 % estate tax unless you (a) apply for amnesty; (b) have a BIR-approved extension; or (c) the return will be filed under the 120-day period in case of foreign estate assets (rare).
If Extension to File is Needed
- Before Day 365, submit a sworn request letter citing grounds (calamity, records in probate, etc.).
- Await BIR’s Approval Letter; if granted, file within the granted ≤ 30 days.
If Extension to Pay is Needed
- File on or before Day 365 but attach “Request for Extension of Time to Pay”.
- Pay bonds or surety if required by BIR.
- Pay on the new schedule (up to 2 or 5 years). Interest is tolled during the extension.
Installment Route (≤ 2 years)
- Elect at filing.
- Submit installment schedule; BIR issues eCARs per property as installments are fully paid.
Estate Tax Amnesty
- Decedents who died on/before 31 May 2022 may opt in any time before 14 June 2025.
- Pay 6 % on the net undeclared/undeclared estate without surcharges and interest.
- No deadlines for issue of eCAR are provided in the statute, but BIR’s internal KPI is 15 working days from full compliance.
4. Miss the Deadline? Consequences & Penalties
| Lapse | Surcharge | Interest (p.a.) | Other Consequences |
|---|---|---|---|
| Late filing OR late payment | 25 % of basic tax; 50 % if willful neglect/fraud | 12 % (TRAIN) from original due date until fully paid | No eCAR → titles & shares cannot be transferred; heirs may incur personal liability to the extent of estate assets |
| Failure to file within amnesty window | Reverts to ordinary tax + penalties; no more amnesty | — | Potential criminal liability under §255 for willful failure |
5. Special Timing Rules & Practical Tips
Small Estates (< ₱5 M)
- May use “summary settlement”; no court proceedings. Timeline largely identical, but paperwork shorter.
Non-Resident Decedents
- Return still due in 1 year, but executor outside the Philippines must designate a resident agent 30 days before filing.
Estate Planning During Lifetime
- Donation vs. inheritance analysis: donations attract donor’s tax payable within 30 days of each gift, potentially easing heirs’ future deadlines.
Transfer of Business Interests
- Corporate shares cannot be transferred on stock-and-transfer books without eCAR. Account for corporate processing (often 2–4 weeks).
Real-Property Transfer Post-Payment
- Registry of Deeds will only annotate titles when presented with eCAR valid for one (1) year from issuance; file documents promptly.
Refund Claims
- If tax is later found excessive, claim must be filed within 2 years from payment (§229).
Audit Period
- Estate tax returns are subject to BIR assessment within 3 years from the last statutory or actual filing date (§203); except for false or fraudulent returns (10 years).
6. Documentary Flow With Recommended Time Stamps
| Document | Ideal Completion Date |
|---|---|
| Inventory of Assets & Liabilities | within 3 months |
| Proofs of valuation (zonal values, FMV, appraisals) | within 6 months |
| Proofs of claimable deductions (debts, funeral, medical, family home) | within 6 months |
| Draft Extrajudicial Settlement (if used) | 7–9 months |
| Publication of extrajudicial settlement (3 consecutive weeks) | start by Month 9 to finish by Month 10 |
| BIR Return & payment/first installment | before Month 12 |
| Second installment (if elected) | within Month 24 |
| Transfer of titles & shares | immediately after eCARs, but before eCAR expiry at Month 36 |
7. Case-Law Nuggets on Timing
- CIR v. Pineda (G.R. L-22734, 1967): Heirs who take possession before estate settlement may be held liable for estate tax up to the value of assets received—even if the return was never filed.
- Heirs of Vda. de Carungcong v. CIR (G.R. 132507, 2001): Estate tax is an obligation of the estate, not of the heirs personally beyond what they received; but BIR may still tag their personal TINs for enforcement if timelines are ignored.
- CIR v. Court of Appeals & SC Johnson (G.R. 120722, 2001): Clarified that extensions under §91 are discretionary; denial is not abuse of discretion if grounds are flimsy.
8. Quick Compliance Checklist
- ☐ Note date of death; calendar + 365 days.
- ☐ Secure valuations and deduction proofs by Month 6.
- ☐ Decide: ordinary return, extension, installment, or amnesty.
- ☐ File BIR Form 1801 on time; attach notarized schedules & Official Receipts.
- ☐ Monitor eCAR issuance; lodge transfers within 1 year of eCAR.
- ☐ Keep all receipts for 10 years for audit defense.
9. Final Thoughts
The Philippine estate-tax timetable is straightforward on paper—one year, 6 % flat rate—but the real-world calendar expands or contracts depending on extensions, installment elections, or amnesty availment. Missing even a single tick of the clock triggers surcharges, interest, and—most tangibly—an inability to transfer property. Mapping each document and approval against the statutory deadlines ensures that heirs move from grief to closure without an added tax headache.
This article reflects law and regulations in force as of 1 June 2025. Subsequent amendments may alter the timelines described. For complex estates, consult a Philippine tax practitioner.