Estate Tax Amnesty Eligibility Philippines 2025

Estate Tax Amnesty Eligibility in the Philippines (2025)

A comprehensive legal overview

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1. Statutory Foundation & Evolution

Law / Issuance	Key Points	Effectivity
Republic Act (RA) 11213 – “Tax Amnesty Act” (14 Feb 2019)	• Introduced a one-time estate-tax amnesty at 6 % of the net estate. • Covered estates of decedents who died on or before 31 Dec 2017. • Original availment window: 15 June 2019 – 14 June 2021.	15 April 2019 (15 days after publication)
RA 11569 (11 June 2021)	• Extended the original availment period to 14 June 2023 (no change in coverage date).	30 June 2021
RA 11956 (05 Aug 2023)	• Expanded coverage to estates of decedents who died on or before 31 May 2022. • Further extended the availment period to 14 June 2025. • Introduced per-property eCAR issuance and other procedural flexibilities.	26 Aug 2023
BIR Revenue Regulations (RR) – 6-2019, 17-2021 & latest RR (2023)	• Implement the mechanics, documentary requirements, and new flexibilities under RA 11956.	Various (latest RR took effect 15 days after publication in 2023)

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2. Who Is Eligible in 2025?

1. Decedent’s Date of Death

   • Must be on or before 31 May 2022.
   • Estates of persons who died after that date are outside the amnesty; their heirs must pay the regular estate tax (still 6 % but subject to surcharges, interest, and the one-year filing deadline).

2. Type of Taxpayer

   • Heirs, beneficiaries, executors, administrators, or legal representatives of the estate—whether resident or non-resident—may avail.
   • Multiple heirs may file jointly or separately (per property) provided the total tax is settled.

3. Estate Situation

   • With or without previously issued assessment, notice of delinquency, or pending civil/criminal case qualified—unless excluded below.

4. Exclusions (Non-eligible)

   • Properties involved in cases pending before or adjudged by:

     • the Sandiganbayan/other courts involving unlawful activity or ill-gotten wealth under the Anti-Graft & Corrupt Practices Act or the Anti-Money-Laundering Act;
     • the Presidential Commission on Good Government (PCGG).

   • Estates with final & executory judgment on estate-tax liabilities prior to availing.

   • Properties subject of expropriation or with pending Court-issued hold departure / freeze orders.

   • Delinquencies under the jurisdiction of the GOCC Governance Commission due to fraud.

Aside from the statutory exclusions, the Bureau of Internal Revenue (BIR) may disallow availment if documents do not establish clear title or if fraud is apparent.

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3. Tax Base, Rate & Minimum Payment

Item	Rule under Estate Tax Amnesty
Rate	6 % of the net taxable estate (total assets minus allowable deductions at the time of death).
Optional per-property payment	Heirs may elect to pay 6 % of the FMV of a particular property and obtain an individual eCAR, useful when disposing only selected assets.
Minimum tax	If the computed 6 % is below ₱5,000, pay ₱5,000 as amnesty tax for the entire estate.
Penalties/Surcharges	100 % waived once the amnesty tax is fully paid within the period.
Installment	Payable in two (2) equal installments within two years from the statutory deadline without interest. (File ETAR and pay first installment on or before 14 June 2025.)

Remember: The ordinary TRAIN-Law estate tax (also 6 %) still applies after death but loses the benefit of waived penalties once the amnesty deadline lapses.

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4. Allowable Deductions (still relevant when computing net estate)

Deduction	Ceiling / Notes
Standard Deduction	₱5 million
Family Home	Up to ₱10 million FMV
Medical Expenses	Actual expenses ≤ ₱500,000 (incurred within 1 year prior to death)
Claims Against Estate, Debts, Funeral, etc.	Subject to substantiation
Vanishing Deduction, Share of Surviving Spouse, Pro-rata share in conjugal/community property	As provided under the NIRC

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5. Documentary Requirements (per latest BIR RR & RMCs)

1. BIR Form 2118-E – Estate Tax Amnesty Return (ETAR)
2. Sworn Statement of the Total Net Estate (SS-TNE) or Statement of Settlement of Estate (SOSE) (Judicial or Extrajudicial).
3. Certified true copy of the Death Certificate.
4. Taxpayer Identification Number (TIN) of the Estate* and all heirs.
5. Schedule of Assets & Liabilities with proofs of FMV (e.g., zonal valuation, BIR-certified tax declaration, BIR-published FMV of shares).
6. Affidavit of Self-Adjudication / Extrajudicial Settlement Agreement (if any).
7. Official Receipts or Deposit Slips evidencing payment (or first installment).
8. Barangay Certification for family-home deduction and/or Supporting Medical Receipts if claimed.
9. Special Power of Attorney / Secretary’s Certificate (for corporate/commercial heirs).

*An estate gets its own TIN. Secure it from the RDO where the decedent resided at death (or RDO No. 39 – South Quezon City for non-resident aliens with property in PH).

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6. Step-by-Step Availment Procedure (Practical Workflow)

Step	Action	Responsible
1	Gather death certificate, titles, bank statements, appraisals, etc.; secure TINs.	Heirs or estate administrator
2	Prepare SOSE/SS-TNE and compute net estate & 6 % tax (use per-property option if desired).	Accountant/lawyer
3	File ETAR + attachments with the Revenue District Office (RDO) having jurisdiction over the decedent’s last residence (or RDO 39).	Heirs/authorized rep
4	Pay the tax over-the-counter, via AAB, eFPS, PESONet, GCash, etc.	Heirs
5	RDO issues Electronic Certificate Authorizing Registration (eCAR) within 5 working days per property once complete.*	BIR
6	Present eCAR to Registry of Deeds, LTO, Corporate Secretary, Stock Transfer Agent, or other registries to transfer title.	Heirs

*For installment cases, eCARs are released only after the final installment is paid.

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7. Legal Effects & Benefits

• Extinguishes civil, criminal, and administrative liabilities arising from non-payment of estate tax for the covered period.
• Cures defects in prior late filings or incomplete documents.
• Enables heirs to sell, mortgage, develop, or partition property with clean title.
• Stops further accumulation of interests, surcharges, and compromises.
• Serves as a “quitclaim”—BIR may no longer audit the covered estate once eCAR is issued.

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8. Frequently Asked Questions (FAQ)

Question	Answer (2025 Regime)
Our father died in April 2022—are we still covered?	Yes. Date of death ≤ 31 May 2022 qualifies. File on or before 14 June 2025.
Can we avail if we paid part of the estate tax years ago?	Yes. Only the unpaid portion can be covered by amnesty; pay 6 % on the unsettled net estate (or per property).
What if heirs pay after 14 June 2025?	The amnesty lapses; the estate becomes liable to regular estate tax plus 25 % surcharge and 12 % annual interest (based on Sec. 248 & 249 NIRC).
Zero– or negative net estate?	Minimum amnesty tax of ₱5,000 must still be paid for the eCAR to issue.
Can we use the family-home deduction if the house is worth ₱12 M?	Deduct only ₱10 M; the excess ₱2 M forms part of the taxable estate.
Is judicial settlement mandatory?	No. Extrajudicial settlement (public deed plus publication) suffices if heirs are of legal age and there is no will.
May we pay the 6 % in kind (property conveyance)?	No. The law requires cash payment (RR §6). Mortgaging or selling a portion to raise funds is allowed once eCARs are issued for those assets.

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9. Practical Tips for Heirs & Practitioners

1. Start valuation early – LGUs and BIR examiners often need time to confirm FMVs, especially in rural areas.
2. Use per-property eCARs when selling only a subset; it avoids tying up the entire estate in one clearance.
3. Mind Real-Property Taxes & Transfer Taxes – these are not covered by the amnesty and must be updated at the LGU before title transfer.
4. Check zoning freeze values – if BIR’s zonal value is higher than LGU assessment, pay 6 % on the zonal value to avoid deficiency.
5. Watch the installment timeline – missing an installment revives penalties retroactively.
6. Document all heirs’ consent – disagreements can delay filing past the deadline. Use an SPA or extrajudicial settlement with notarized signatures.
7. Secure the estate TIN first – RDOs will not accept ETAR without it.

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10. Conclusion

The 2025 estate-tax amnesty—valid until 14 June 2025 and covering deaths up to 31 May 2022—is likely the last window to legalize untitled or disputed inherited assets at a flat 6 % with full penalty waiver. Properly availed, it delivers a clean slate, unlocks dormant wealth, and shields heirs from future BIR assessments. Delaying beyond 2025 resurrects the ordinary estate-tax rules, surcharges, and interest—costly and often litigious. Heirs, executors, and practitioners should therefore complete valuations, gather documents, and file the ETAR as soon as practicable.

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This article is for general information only and does not constitute legal advice. For estate-specific guidance, consult a Philippine tax or estate lawyer and your local Revenue District Office.