3 May 2025
The Bureau of Internal Revenue (BIR), has issued Revenue Regulations (RR) No. 10-2023, providing critical guidelines on the implementation of the Estate Tax Amnesty Extension Act under Republic Act No. 11956. This regulation grants families and heirs a valuable opportunity to settle estate tax liabilities of their deceased relatives without penalties, surcharges, or interest, but the clock is ticking. The deadline to avail of the amnesty is June 14, 2025 — and there will be no further extensions.
If you’re an heir, executor, or administrator dealing with an estate of a loved one who passed away on or before May 31, 2022, this is your chance to resolve tax issues affordably and legally. Importantly, you do not need a court decision or formal settlement to avail of this amnesty. The process is administrative and straightforward, making it accessible to thousands of Filipino families.
What Is the Estate Tax Amnesty?
Estate tax is a tax on the right to transfer property upon death. However, for many families, this obligation becomes burdensome due to high penalties and the legal complexity of settling estates. To address this, the government introduced an estate tax amnesty program in 2019 under RA 11213, allowing people to settle their estate tax liabilities without penalties or interest. RA 11956 extended the amnesty’s coverage to estates of decedents who died on or before May 31, 2022. The period to avail of the amnesty was also extended until June 14, 2025, offering significant tax relief.
Who Can Avail of the Amnesty?
The estate tax amnesty covers all estates with unpaid taxes of decedents who died on or before May 31, 2022, whether or not the estate has already been settled judicially or extrajudicially. The amnesty applies regardless of whether a formal settlement has occurred. This is a crucial clarification: heirs can pay the estate tax and avail of the amnesty without first settling the estate through court proceedings or a formal agreement.
This point is reinforced in RR No. 10-2023, which explicitly states that the filing of the estate tax amnesty return is not conditioned upon prior settlement of the estate. Families can move forward with tax compliance even if some heirs are unavailable, disputes exist, or judicial processes are still pending.
Example:
Maria’s father died in 2019, leaving behind a house and lot. Her siblings are abroad and unable to coordinate a full extrajudicial settlement. Under this amnesty, Maria can pay the estate tax on behalf of the estate without needing a court or notarial settlement. This ensures the estate becomes tax-compliant and can eventually be transferred legally.
What Assets and Liabilities Are Covered?
All assets left behind by the decedent, including real estate, personal property, bank deposits, shares of stock, and vehicles, are included in the estate tax computation. However, liabilities and losses that are allowable as deductions under the Tax Code may be considered in computing the net estate value.
The following are included in the estate tax base:
- Real properties (residential, agricultural, commercial),
- Bank accounts,
- Jewelry, artworks,
- Shares of stock (both publicly and privately held),
- Motor vehicles,
- Other personal and intangible properties.
Importantly, the BIR allows deductions such as:
- Standard deductions (currently ₱5 million),
- Medical expenses,
- Debts of the deceased,
- Family home exemption (up to ₱10 million),
- Judicial expenses.
How Much Do You Need to Pay?
Under the amnesty program:
- The estate tax is imposed at a flat rate of 6% of the net estate at the time of the decedent’s death.
- There are no penalties, surcharges, or interest — even if the estate tax should have been paid years ago.
Example:
If a decedent left a net estate worth ₱8 million in 2000, the tax due under the amnesty would be:
₱8,000,000 – ₱5,000,000 (Standard Deduction) = ₱3,000,000
₱3,000,000 × 6% = ₱180,000
That’s it. No additional charges.
In cases where the estate is valued below the standard deduction (₱5 million), the estate may end up with no tax due at all — but the heirs still need to file the required documents to obtain a Certificate of Availment and ensure proper estate documentation.
What Are the Requirements?
To apply for the estate tax amnesty, the following documents must be submitted to the BIR Revenue District Office (RDO) where the decedent was a resident at the time of death:
- Estate Tax Amnesty Return (ETAR) – BIR Form No. 2118-EA.
- Sworn Declaration of the Estate – details of the assets, deductions, and computation of the net estate.
- Certified True Copy of the Death Certificate.
- Tax Identification Numbers (TINs) of the decedent and heirs.
- Proof of Ownership – titles, bank statements, vehicle registration, etc.
- Proof of Payment of the estate tax. All payments are to be made through the Authorized Agent Banks (AABs), electronic channels, or other payment mechanisms as authorized by the BIR.
No need to present a court-approved settlement or extrajudicial agreement — the ETAR and declaration serve as sufficient documentation to process the tax payment.
Why You Shouldn’t Delay
The deadline to file and pay is June 14, 2025. This is a hard deadline — the law does not allow any further extensions.
Failure to avail of the amnesty by then means:
- The estate will be subject to regular estate tax rules,
- Penalties and surcharges will be imposed (up to 25% surcharge and 20% interest per annum),
- Additional legal requirements may arise, including estate settlement proceedings,
- Real properties and other assets may remain frozen or unusable, especially if heirs intend to sell, donate, or transfer titles.
Special Notes for Complicated Estates
Even if there are:
- Unlocated heirs,
- Disputes among heirs,
- Unsettled debts,
- Missing documents,
…the amnesty can still be availed of so long as the minimum documentary requirements are met. The law recognizes the complexity of some estates and offers flexibility to allow tax compliance.
What Happens After Payment?
After the estate tax is paid and the return is filed:
- The BIR issues a Certificate of Availment.
- This certificate confirms that the estate tax has been settled under the amnesty.
- The certificate can be used to process title transfers, bank withdrawals, and other legal steps required to deal with the inherited properties.
Tip: Secure this certificate and keep it with all other estate documents for future transactions involving the inherited assets.
The Bottom Line: Act Now, Simplify Later
The estate tax amnesty is a rare opportunity to correct past oversights or delays in estate tax compliance. Even if the estate seems small, untangling legal and tax issues later can become costly and stressful.
Heirs should act proactively and not wait until just before the June 14, 2025 deadline to file. The process may involve time to gather documents, determine valuations, or obtain TINs — so start early.
Most importantly, you do not need to wait for a court order or settle disputes among heirs before paying the tax and securing your compliance.
References
- Bureau of Internal Revenue. Revenue Regulations No. 10-2023: Implementing Republic Act No. 11956, Extending the Estate Tax Amnesty and Amending Sections of RR No. 6-2019. Published October 2023.
- Republic Act No. 11956. An Act Further Extending the Period of Availment of the Estate Tax Amnesty Under Section 4 of Republic Act No. 11213. Approved August 5, 2023.
- National Internal Revenue Code of 1997, as amended.
