Congress Extends the Estate Tax Amnesty Deadline by Two Years
The Philippine Congress recently passed a measure that extends the estate tax amnesty deadline by two years.
Senator Juan Edgardo Angara welcomed the House of Representatives’ adoption of the Senate Bill (SB) No. 2208, which carries the amendments to Republic Act (RA) No. 11213, also known as the Tax Amnesty Act of 2019.
The Senate passed SB No. 2208 for third and final reading on Monday, May 24, and will be sent to the Malacañang for President Rodrigo Duterte to sign into law upon the House’s approval.
The measure aims to extend the deadline for applications availing of the government’s amnesty program on delinquent estate taxes by two years, moving the deadline from June 14, 2021, to June 14, 2023.
Angara stated, “The pandemic is especially hard on seniors who are prevented from going out and overseas Filipinos who could not fly in. Plus, many government offices closed for long periods and, when they opened, with less personnel.”
Angara also noted how the COVID-19 pandemic revoked prospective taxpayers more than 15 months of transaction time to avail of the tax amnesty program. The program grants a one-time offer of reduced rates for previous delinquencies.
He added, “This will be good for the heirs because they can now enjoy the assets; good for the government because collections will increase; and good for the economy because assets will be freed for development.”
The law also writes off penalties and surcharges, which could be near the estate’s value if the assessed arrears cover a long time.
He concluded that “These assets are crucial for the post-pandemic recovery of hard-hit families. And the liberalized rules that free their development and disposition benefit the government with the taxes paid.”