Death is not often the subject of conversations, especially in Filipino culture. People only talk about it when the reality comes, and together with this, comes the talk about the estate left behind by the decedent. Because of this, Filipino families tend to neglect the duty to settle the taxes that is imposed on the estate left by a decedent. Such neglect may be costly, as penalties and surcharges are also collected on top of the unpaid taxes.
The law provides that taxes on estates be settled within one (1) year from the date of the death of the decedent. However, if you failed to file estate tax returns, Republic Act 11213, otherwise known as the “Tax Amnesty Act”, is the answer to your problem.
Under the said law, tax relief will be given to taxpayers who failed to settle their tax obligations, provided that they do not fall under the exceptions listed in the Implementing Rules and Regulations (IRR) released by the BIR. For estate taxes, the law covers unsettled estate taxes of decedents who died on or before 31 December 2017. The rate of the estate tax to be paid shall be six percent (6%) of the total net taxable estate, valued at the time of death of the decedent.
To avail of this relief, taxpayers should file a Tax Amnesty Return together with all the necessary documentary requirements with the Revenue District Office (RDO) that has jurisdiction over the last residence of the decedent at the time of his/her death. This return should be filed within 2 years from the date of effectivity of the IRR, which was on 29 May 2019.
Settlement of estate taxes is very taxing, and you need a knowledgeable professional to help you. Yap, Kung, Ching, and Associates Law (YKC LAW) can assist you in this; you can send an email to info@ykclaw.ph to schedule a meeting with one of our lawyers.
