Tax Notes: Extension of Estate Tax Amnesty pursuant to the amended Tax Amnesty Act

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Last July 26, 2021, the Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) 17-2021 amending sections 9, 12 and 13 of RR 6-2019 on the extension of the availment of Estate Tax Amnesty under Republic Act 11213, as amended by RA 11560.

To avail of the estate tax amnesty, administrators, executors, legal heirs, transferees or beneficiaries must file the Estate Tax Amnesty (ETAR), or BIR Form 2118EA, with the Revenue District Office (RDO) having jurisdiction over the last residence of the decedent not later than June 14, 2023.

The duly accomplished and sworn ETAR, together with the Acceptance Payment Form (APF-BIR Form No. 621-EA) and complete documents as enumerated in the ETAR, shall be presented to the RDO concerned. Within five working days from the receipt of the documents, the RDO concerned shall either endorse the APF for payment of the estate amnesty tax with Authorized Agent Banks (AABs) or Revenue Collection Officers (RCOs) or shall notify the taxpayer of any deficiency in the application. Only the duly endorsed APF shall be presented to and received by AAB or RCO.

The ETAR and APF, together with other documents, should be submitted to the RDO in triplicate copies on or before June 14, 2023. Failure to submit is tantamount to non-availment of the Estate Tax Amnesty. Any payment made may be applied against the total regular estate tax due, inclusive of penalties.

The Certificate of Availment of the Estate Tax Amnesty shall be issued by the concerned RDO within 15 calendar days from the receipt of the application for estate tax amnesty, along with duly validated APF or proof of payment and complete documentary requirements enumerated in revised BIR Form 2118-EA.

Until such time that the electronic Certificate Authorizing Registration (eCAR) system can generate one eCAR for all properties covered by single transactions, one eCAR shall be issued per real property including the improvements, if there are any, covered by Original Certificate of Title/Transfer Certificate of Title/Condominium Certificate of Title or Tax Declaration for untitled properties. For personal properties included in the estate, a separate eCAR shall be issued.

Proof of settlement of the estate, whether judicial (by court order) or extra-judicial (extra-judicial settlement or EJS), need not accompany the ETAR if it is not yet available at the time of filing. However, no eCAR shall be issued unless such proof is presented and submitted to the concerned RDO. If these documents include properties not indicated in the ETAR filed, the properties shall likewise be excluded from the eCAR, unless additional estate tax amnesty payment is made if the submission is within the amnesty period. Otherwise, the additional estate tax to be paid for the additional properties indicated in the EJS or Court Order shall be subject to applicable estate tax rates including interests and penalties.

Please be guided accordingly.

Source: P&A Grant Thornton

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