Tax after death: Gov’t sets reprieve

By: - Reporter / @bendeveraINQ
/ 05:08 AM April 22, 2019

Besides the tax amnesty on delinquencies that will begin on April 24, heirs of the deceased can avail of a reprieve for their unpaid estate taxes starting May, according to the Bureau of Internal Revenue (BIR).

Deputy Commissioner Marissa Cabreros told reporters last week a revenue fiat that would serve as the implementing guideline for the estate tax amnesty provision of Republic Act No. 11213 would be published this week and ready for public consultation.


RA 11213, or the Tax Amnesty Act of 2019, provided that for deaths registered on or before Dec. 31, 2017, the government would collect only 6 percent of the decedent’s total net estate at the time of death.

Cabreros said once the revenue regulation (RR) on estate tax amnesty is finalized by the BIR, it could take effect as early as next month.

The BIR official said they came out with RR 4-2019 or the implementing rules and regulations concerning the upcoming tax amnesty on delinquencies before the guidelines on estate taxes as the former was “easier and straightforward.”

“Estate tax amnesty is somewhat complicated in the sense that its implications involve several transfers of property, so it’s more on completeness of reporting and proper valuation issues,” she explained.

The Department of Finance had estimated additional revenues from estate tax amnesty to hit P6.28 billion, while the amnesty on delinquencies would generate a larger P21.26 billion.

Cabreros said the BIR was ready to accept applications for the delinquencies amnesty, which would be implemented for one year or until April 23 next year.

“We’re hoping a lot of taxpayers will avail of [amnesty on delinquencies] because it will give them a clean slate and at the same time, our (the BIR’s) floating receivables will be converted into collection, so also a clean slate on our part,” Cabreros said.

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