What to Know: Estate Tax Amnesty Law

WHO ARE COVERED

Section 2 of Revenue Regulations No. 10-2023 provides that the estate tax amnesty shall cover the estate of decedents who died on or before May 31, 2022 with or without assessments duly issued therefor, whose estate taxes have remained unpaid or have accrued as of May 31, 2022. 

WHAT IS ESTATE TAX AMNESTY

Under Republic Act No. 11213, as amended by RA 11569 and RA11956, the executor or administrator of the estate, or is there is no executor or administrator appointed, the legal heirs, transferees or beneficiaries, who wish to avail of the Estate Tax Amnesty shall, within June 15, 2023 until June 14, 2025, file, either electronically or manually, with any authorized agent bank, Revenue District Office through Revenue Collection Officer, or authorized tax software provider, a sworn Estate Tax Amnesty Return (ETAR), in such forms as may be prescribed in the Implementing Rules and Regulations. 

The estate amnesty tax rate is six percent (6%) based on the decedent’s total net estate at the time of death. However, if an ETAR has been previously filed with the BIR, the tax rate shall be based on the net undeclared estate. 

Why You Can’t Afford to Miss the Estate Tax Amnesty Window

Navigating estate tax can feel like traversing a minefield of rates, penalties, and paperwork. Thankfully, the Philippine government has rolled out a generous amnesty program that slashes your estate tax to a flat 6%, waives all penalties and interest, and grants full legal immunity—but only until June 14, 2025. Here’s why acting now isn’t just smart—it’s imperative.

Under Revenue Regulations No. 10‑2023 (implementing RA 11956), estates of decedents who died on or before May 31, 2022, with unpaid or accrued taxes as of that date, can settle their obligations at a flat 6% of the net estate value—no more. Contrast that with the pre‑TRAIN Law rates, which climbed as high as 20%, plus cascading penalties and interest.

• No stage‑by‑stage penalties: Once you pay the 6%, you’re done—no further civil, criminal, or administrative cases or surcharges.
• Installment option: Spread your 6% payment over two years, interest‑free.

Even a modest ₱5 million net estate saves you ₱700,000 (from ₱1 million at 20% down to ₱300,000 at 6%)—and you avoid years of compounding penalties.

To further illustrate, imagine your parents passed away years ago, leaving a combined net estate of Php 10 million. Without the amnesty the total amount you need to pay due to the penalties and surcharge is around Php 4 million to Php 6 million. But with the amnesty, all you would need to pay is Php 600,000, saving you at least Php 3.4 million.

MANDATORY REQUIREMENTS 

1. Certified true copy of the Death Certificate (DC), or if not available, the certificate of no record of death from Philippine Statistics Authority and any valid secondary evidence including, but not limited to, those issued by any government agency/office sufficient to establish the fact of death of the decedent;
2. Taxpayer Identification Number (TIN) of decedent and heir/s;
3. For “claims against the estate” arising from contract of loan, notarized promissory note, if applicable;
4. Proof of the claimed “property previously taxed”, if any;
5. Proof of the claimed “transfer for public use”, if any; and
6. At least one (1) government-issued identification card (ID) of the executor/administrator of the estate, or if there is no executor or administrator appointed, the heirs, transferees, beneficiaries or authorized representatives.

FOR REAL PROPERTY/IES IF ANY:

1. Certified true copy/ies of the transfer/original condominium certificate/s of title of real property/ies;
2. Certified true copy of the tax declaration of real property/ies, if untitled, including the improvements at the time of death or the succeeding available tax declaration issued nearest to the time of death of the decedent, if none is available at the time of death; and
3. Where declared property/ies has/have no improvement, Certificate of No Improvement issued by the assessor’s office at the time of death of the decedent.

FOR REAL PROPERTY/IES IF APPLICABLE:

1. Certificate of Deposit/Investment Indebtedness owned by the decedent alone, or decedent alone, or decedent and the surviving spouse, or decedent jointly with others;
2. Certificate of Registration of vehicle/s and other proofs showing the correct value of the same;
3. Certificate of Stocks;
4. Proof of valuation of shares of stock at the time of death; or
5. Proof of valuation of other types of personal property.

OTHER REQUIREMENTS, IF APPLICABLE:

1. If the person transacting/processing the transfer is the authorized representative, duly notarized original Special Power of Attorney (SPA) and/or, if one of the heirs is designated as executor/administrator, sworn statement;
2. If the document is executed abroad, certification from the Philippine Consulate or Apostille; or
3. If zonal value cannot be readily determined from the documents submitted, location plan/vicinity map

IMMUNITIES AND PRIVILEGES

The law provides that payment of the estate amnesty tax shall mean immunity from the payment of all estate taxes, as well as any increments and additions thereto, arising from the failure to pay any and all estate taxes for the period ending May 31, 2022 and prior years, and from all appurtenant civil, criminal, and administrative cases and penalties under the National Internal Revenue Code of 1997, as amended.

WHO ARE NOT COVERED

Note that the following are not covered by the Estate Tax Amnesty Law:

1. Estate tax cases which shall have become final and executory 
2. Properties involved in cases pending in appropriate courts:
   1. Falling under the jurisdiction of the Presidential Commission on Good Government;
   2. Involving unexplained or unlawfully acquired wealth under Republic Act No. 3019, otherwise known as the Anti-Graft and Corrupt Practices Act, and Republic Act No. 7080 or An Act Defining and Penalizing the Crime of Plunder;
   3. Involving violations of Republic Act No. 9160, otherwise known as the Anti-Money Laundering Act, as amended;
   4. Involving tax evasion and other criminal offenses under Chapter II of Title X of the National Internal Revenue Code of 1997, as amended; and
   5. Involving felonies of frauds, illegal exactions and transactions, and malversation of public funds and property under Chapters III and IV of Title VII of the Revised Penal Code.

Section 4 of the RA11956 also provides that payment of estate taxes by installment shall be allowed within two (2) years from the statutory date for its payment without civil penalty and interest.

Planning to file an estate tax amnesty return but don’t know how? Kindly contact us today at info@baisandanlaw.com. You can also reach us via cellphone number at 0915 968 2503 or at our telephone number (045) 281 0164.