On June 30, 2021, Republic Act (RA) 11569 was signed into law which extended the period for availment of estate tax amnesty for two years, from June 15, 2021 per RA 11213 or the Tax Amnesty Act of 2019 to June 14, 2023.
The estate tax amnesty program provides an opportunity for those who have unsettled tax liability for estates of decedents who died on or before Dec. 31, 2017. Those who will avail themselves within the prescribed period will pay either the reduced estate tax amnesty rate of six percent, from the previous rate of 20 percent, of the decedent’s total net taxable estate or the minimum amnesty tax of P 5,000, in case there is negative net estate.
The extension was approved due to government-imposed lockdowns and safety restrictions brought by the Covid-19 pandemic which have hampered people from settling their tax obligations.
RA 11569 will take effect on July 15, 2021, 15 days from its publication in the Official Gazette or in two newspapers of general circulation.
Source: P&A Grant Thornton
Certified Public Accountants