Estate Tax Amnesty in the Philippines Application Fee, Documentary Requirements & Procedural Playbook (Updated to reflect Republic Act No. 11956, in force until 14 June 2025)
1. Legislative Framework
| Law / Issuance | Salient Points | Key Dates |
|---|---|---|
| Republic Act (RA) 11213 — “Tax Amnesty Act” | Granted a one-time estate-tax amnesty at a flat 6 % rate on the net estate of decedents who died on or before 31 December 2017. Penalties, surcharges and interest were completely waived. | Effectivity : 15 June 2019 |
| Revenue Regulations (RR) No. 6-2019 | Implementing rules for Estate Tax Amnesty; prescribed BIR Form No. 2118-E (Estate Tax Amnesty Return) and a separate Estate Tax Amnesty Declaration (ETAD). | |
| RA 11569 | First extension: pushed the original two-year filing window to 14 June 2023. | |
| RA 11956 (enacted 05 Aug 2023) | • Second extension: new deadline — 14 June 2025. • Broadened coverage: now includes estates of decedents who died on or before 31 December 2021. • Relaxed documentary timing: heirs may file/pay first and submit the Extrajudicial Settlement or court order within 2 years from filing. |
Take-away: If the decedent passed away on or before 31 Dec 2021 and the estate tax remains unpaid, you have until 14 June 2025 to lock-in the 6 % rate and full waiver of penalties.
2. Coverage & Exclusions
Covered
- Estates of Philippine or foreign nationals with assets in the Philippines whose owner died on or before 31 Dec 2021.
- Estates with or without previously-filed returns, assessments or pending protests.
Not Covered
- Delinquent estates where final & executory fraud judgments exist.
- Properties involved in Anti-Money Laundering Act or PCGG recovery cases.
- Decedents who die 1 Jan 2022 onwards (regular TRAIN-law rates apply: 6 % of net estate plus penalties).
3. The Amnesty Rate & How to Compute It
| Item | Description |
|---|---|
| Tax Base | Net estate = Gross estate – (Allowable deductions under the old National Internal Revenue Code [NIRC] in force on the date of death). ▪ Gross estate: real, personal, tangible, intangible assets valued at date of death. ▪ Deductions: funeral expenses (≤ 5 % or ₱200k cap), medical expenses, family home (≤ ₱1 M), standard deduction (₱1 M pre-TRAIN deaths, ₱5 M for deaths 2018–2021), debts, etc. |
| Amnesty Rate | 6 % of the net estate or ₱5,000 minimum, whichever is higher. |
| Installment? | No. Full payment upon filing is required, but the heirs are free to agree among themselves on how to raise the money. |
| Effect | Settles all estate-tax liabilities once-and-for-all—no surcharge, interest or compromise penalty. Immunity from civil, criminal and administrative cases based on the covered tax period. |
4. Documentary Checklist
(Keep two plain-paper copies each; bring originals for comparison)
| Core Documents | Purpose |
|---|---|
| 1. BIR Form No. 2118-E (Estate Tax Amnesty Return) | One per estate; indicates computation and payment details. |
| 2. Estate Tax Amnesty Declaration (Annex “A” of RR 6-2019) | Sworn declaration of assets, liabilities and heirs. |
| 3. Death Certificate (PSA-certified) | Proof and date of death. |
| 4. Taxpayer Identification Numbers (TINs) | ▪ Estate must have its own TIN (apply using BIR Form 1904). ▪ All heirs/beneficiaries must likewise have TINs. |
| 5. Schedule of Assets & Liabilities | a. Real property: TCT/CCT or OCT; latest Tax Declaration; zonal or FMV. b. Personal property: stock certificates, bank statements (balance at death), vehicles (LTO record), jewelry appraisals, etc. |
| 6. Proof of Valuation | Zonal values print-out, appraisal reports, or BIR accepted substitutes (e.g., assessment roll). |
| 7. Proof of Payment | Validated bank payment slip, electronic payment confirmation or RCO machine validation. |
| 8. Settlement Instrument (may be deferred until 2027 under RA 11956) | a. Extrajudicial Settlement (EJS), notarized & published once a week for 3 consecutive weeks in a newspaper of general circulation; or b. Court-issued Decree of Settlement/Partition (for testate/intestate cases). |
| 9. IDs of heirs & notarized SPA (if representative files) | Identity & authority. |
Supplementary documents (as relevant): latest RPT receipts, car registration, stock valuation certificate, certification of tax-exempt status for transfer of certain retirement benefits, etc.
5. Filing & Payment Flow
Determine the BIR office of jurisdiction
➜ RDO where the decedent was domiciled at the time of death. No domicile? Use RDO 39 – South Quezon City (Office of the Commissioner).
Secure TIN for the Estate (BIR Form 1904).
Gather documents & compute 6 % tax.
Pay the tax Mode: over-the-counter at an Authorized Agent Bank (AAB) within the RDO, or electronic channels (eFPS/eBIR).
File the complete packet with the BIR processing officer.
Issuance of eCAR / Certificate of Availment Timeline: 15 working days from submission of complete docs.
Post-Filing Steps
- Register EJS in the Register of Deeds/Land Registry and annotate the eCAR.
- Transfer certificates of title, shares or vehicle ownership to heirs.
6. Fees & Ancillary Costs
| Charge | When Payable | Typical Amount |
|---|---|---|
| Estate Amnesty Tax | Upon filing | 6 % of net estate (₱5,000 minimum). |
| Documentary Stamp Tax (DST) on EJS / deeds of assignment | On notarization/registration of EJS & on each deed of conveyance | 1. DST on EJS – ₱15 fixed. 2. DST on conveyances – 1.5 % of FMV/consideration (not covered by amnesty). |
| Notarial Fee | Notarization of EJS | ₱500 – ₱2,000 (market rates). |
| Publication Cost | EJS notice (3 weeks) | ₱8,000 – ₱25,000+ (depends on newspaper). |
| Register of Deeds fees | Annotation & issuance of new title | Around ₱8,000 per title (varies by LGU & FMV slab). |
| Certification Fees (BIR, LRA, PSA) | Certified true copies, etc. | ₱100 – ₱250 each. |
No separate “application fee” is charged by the BIR beyond the amnesty tax itself. Budget, however, for the collateral costs above.
7. Strategic Pointers & Common Pitfalls
Valuation Date Always use the FMV at date of death, not today’s market price.
Heir TINs Applications stall because heirs lack TINs. Secure these early.
Original Titles vs. Owner’s Duplicate The BIR will accept photocopies at filing but will not release the eCAR until originals are produced for comparison.
Partial Documentation Now, Settlement Later Thanks to RA 11956, you may file/pay even if the EJS or court decree is unfinished. But remember the two-year clock from filing to submit it, or the availment is voided.
Double-check exclusions Estates embroiled in final fraud findings cannot use the amnesty; insistence can lead to outright denial and exposure to criminal charges.
Penalties for Misdeclaration Understatement of assets by > 30 % can nullify the availment and subject signatories to perjury and tax fraud prosecution.
8. What Happens If You Miss the 14 June 2025 Deadline?
- The estate immediately falls under the TRAIN-law estate-tax schedule (still a flat 6 %, but all surcharges, interest (20 % p.a.) and compromise penalties resurrect).
- BIR may issue assessment notices and impose levy/liens on estate assets.
- Transfer of titles, withdrawal of bank deposits or sale of inherited property will be blocked until taxes are cleared.
9. Frequently Asked Questions
| Question | Short Answer |
|---|---|
| Does amnesty apply to donor’s tax? | No. Only estate tax. A separate amnesty for delinquent taxes exists but donor’s tax for the same estate is not covered. |
| Can we pay in installments? | The law does not allow staggered payments. You may, however, divide the burden among heirs by private agreement. |
| Are foreign assets included? | Only Philippine-situated assets are taxable. Foreign real or personal property is excluded from the Philippine estate tax base. |
| What if estate liabilities exceed assets? | File the return showing a zero or negative net estate. The ₱5,000 minimum amnesty tax still applies, but there is no surcharge or interest. |
| My title was lost—can I file? | Yes. Attach a notarized Affidavit of Loss and the latest certified true copy from the Registry/LRA. |
10. Conclusion
With the enactment of RA 11956, Congress has given heirs one final, two-year window (until 14 June 2025) to put decades-old estates in order—minus punishing penalties and with less red tape. The core cost is the 6 % amnesty tax; there is no extra “application fee,” though heirs should plan for notarial, publication and registration outlays. Early preparation of TINs, asset schedules, and valuation documents keeps the filing smooth, while the new flexibility on submitting the settlement deed buys valuable time for squabbling heirs or slowly moving courts. Miss the deadline, and the full weight of ordinary estate-tax enforcement returns.
If the estate you’re handling qualifies, act now—the BIR counters are open, and the clock is ticking.
(This article is for general informational purposes only and does not constitute legal advice. For specific situations, consult a Philippine tax-law practitioner or the Bureau of Internal Revenue.)