B.I.R Extends Amnesty on Estate Tax

By Mortz C. Ortigoza

CALASIAO, Pangasinan – To avoid paying the hefty penalties by the errant taxpayers, the Bureau of Internal Revenue extended anew the Estate Tax Amnesty.

Revenue District Office No. 4 Chief Ernesto Mangabat said that the extension will be until year 2023.

“Pero huwag ninyo na rin hintayin iyon. Ngayon na kasi. May mga naghahabol noon na hindi na nakahabol. Ngayon pagkakataon na since approved na iyong law for the extension of the estate tax amnesty puwede ng mag avail ng estate tax amnesty,” he told this newspaper.

On June 30, 2021, Republic Act  (R.A)11569 was signed into law which extended the period for availment of estate tax amnesty for two years, from June 15, 2021 per R.A 11213 or the Tax Amnesty Act of 2019 to June 14, 2023.

Photo is internet grab.

Estate Tax is a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfers, which are made by law as equivalent to testamentary disposition. It is not a tax on property. It is a tax imposed on the privilege of transmitting property upon the death of the owner. The Estate Tax is based on the laws in force at the time of death notwithstanding the postponement of the actual possession or enjoyment of the estate by the beneficiary.

Mangabat said that the law did not distinguish the year of the delinquent estate tax payee where he failed to pay his taxes on time as long as he did not go beyond the deadline.

There shall be an imposed rate of six percent, he cited, based on the value of such net estate determined as of the time of death of the decedent composed of all properties, real or personal, tangible or intangible less allowable deductions.

The top tax honcho in Central Pangasinan explained that a clean bill with the BIR will make the taxpayer sell, dispose as collateral for a loan, and whatever his or her real property without fear of the penalties like the twenty five percent surcharge, twenty percent interest per year, and compromise penalty.

Mangabat said that the heirs of the deceased who neglect to pay the Estate Tax will face a mounting debt to the government before they can sell or loan in the bank using the property as collateral.

Assessment by the BIR on the real properties for the Estate Tax depends if it will be based on the zonal valuation or the municipal or city’s Assessor estimate.

“Depende kung namatay kung wala pang zonal valuation we will be using the market value as per Assessor’s declaration”.

An erring taxpayer will face a debilitating fines as if he or she gives away for free his or her properties.

“Kaya nga we have the Estate Tax Amnesty para matulungan itong hindi pa nakaka transfer ng mga lupain”.

He said that when the amnesty started last year many taxpayer avail for it.

It shored up the collection of the tax agency.

The BIR sets a P2.081-trillion collection target for 2021, seven percent bigger than the P1.94 trillion collected last year.