The Bureau of Internal Revenue (BIR) has issued rules for heirs planning to settle their unpaid estate tax after Congress extended the period for payment until 2025.
Revenue Regulation 10-2023 issued on Sept. 8, 2023 laid down the guidelines for the implementation of Republic Act (RA) No. 11956, which lapsed into law last August. It gives taxpayers until June 14, 2025 to settle their estate tax obligations.
Taxpayers have the option to file and pay the Estate Tax Amnesty Return (Etar) electronically or manually from June 15, 2023 until June 14, 2025, with any authorized agent bank, through remittance to any Revenue District Office (RDO), or authorized tax software provider as defined in the Revenue Memorandum Order (RMO) 8-2019.
A 6% tax is imposed on the net estate of a family member before the assets, such as houses, cash, and land can be officially passed on to heirs by way of transfer of titles of ownership.
The estate tax amnesty rate remains to be six percent based on the total net estate of the decedent at the time of death.