Government hopes to collect more taxes

From extension of estate tax amnesty

MANILA, Philippines — The government expects to collect more taxes following the Senate’s approval of the extension of the availment of the estate tax amnesty for two more years, according to the Department of Finance.

DOF Secretary Benjamin Diokno said Senate Bill 2219, extending the period of availment of the estate tax amnesty until June 14, 2025, has been approved.

“The DOF welcomes the renewed extension of the estate tax amnesty period. This will allow errant taxpayers to settle their estate tax liabilities affordably, enable the government to collect additional revenues and strengthen tax compliance,” Diokno said.

Senate Bill 2219 was passed unanimously on third reading on May 29 with 24 affirmative votes and no negative votes or abstentions. It is expected to be signed into law by President Marcos before the second State of the Nation Address (SONA) on July 24.

The bill further extends the availment period of the estate tax amnesty for another two years, past the original expiration of June 14, 2023.

Additionally, the measure amends the original law to also cover the unsettled estates of decedents who died on or before May 31, 2023.

“The timely enactment of this measure is crucial, as it will provide much-needed relief to individuals and families facing extraordinary circumstances, while supporting the national government’s efforts to spur development by incentivizing the regularization of assets,” Diokno said.

The bill also allows those who avail themselves of the amnesty program to file estate tax returns electronically or manually. Taxpayers may settle the tax due through any authorized agent bank, revenue district office or authorized tax software provider.

It also streamlines documentary requirements that should be submitted to the Bureau of Internal Revenue (BIR) and allows payment of outstanding liabilities in two-year installments without civil penalty or interest.

From the enactment of the Tax Amnesty Law in 2019 until March 31, the national government collected P7.41 billion from 133,860 beneficiaries who availed themselves of the amnesty.

Former president Rodrigo Duterte signed RA 11213 or the Estate Amnesty Act in February 2019, granting taxpayers a one-time opportunity to settle their tax obligations through an estate amnesty program that gives reasonable tax relief to estates with outstanding estate tax liabilities.

RA 11569 extended the deadline for the filing of estate tax amnesty returns to June 14, 2023.