BIR: No deadline for amnesty seekers to submit proof of estate settlement
THE Bureau of Internal Revenue (BIR) said heirs filing for the estate tax amnesty face no deadline to submit proof of estate settlement.
In Revenue Memorandum Circular No. 33-2026 issued on Monday, the BIR clarified that the proof of settlement of estate is nevertheless required to process and issue an electronic certificate authorizing registration (eCAR).
eCAR certifies that estate taxes have been paid, thereby authorizing the transfer of property from a deceased person to heirs.
Meanwhile, the BIR said properties that were not included in previously filed estate tax amnesty returns are subject to regular estate tax rather than amnesty rates.
The BIR also said that installment payment may be allowed within two years from the statutory date of its payment without civil penalty and interest but is subject to approval of the revenue district office.
“Installments need not be of equal amounts, provided that the total amount of installments due within the two-year period is equal to the total estate tax amnesty due,” it said.
“Failure to pay any installment on or before its scheduled due date shall be considered a forfeiture of the estate tax amnesty availment,” it added.
If this happens, the properties covered by the application will be subject to the applicable estate tax laws in effect at the time of the decedent’s death.
“The estate tax due shall be computed based on the applicable tax rates, deducting any payments already made under the amnesty, and shall include the corresponding delinquency penalties,” it added. — Justine Irish D. Tabile
