Draft estate tax amnesty rules released
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Wed, 24 Apr 2019 16:24:43 +0000
Draft rules for an estate tax amnesty have been released by the Bureau of Internal Revenue (BIR), which expects to collect some P6.28 billion once the program is implemented.
Detailed during a public consultation on Wednesday, the proposed implementing rules and regulations (IRR) states that the amnesty “shall cover the estate of the decedent/s who died on or before December 31, 2017, with or without assessments duly issued therefore, whose estate tax/es have remained unpaid or have accrued as of December 31, 2017.”
Liabilities covered by a separate amnesty on delinquencies that kicks off on Wednesday will not be eligible.
Also excluded from the estate tax amnesty are properties involved in pending cases under the jurisdiction of the Presidential Commission of Good Government, the Anti-
Graft and Corrupt Practices Act and Plunder Law, Anti-Money Laundering Act, National Internal Revenue Code and the Revised Penal Code.
“An estate tax amnesty rate of six percent shall be imposed on each decedent’s total net taxable estate at the time of death without penalties at every stage of transfer of property in cognizance with the rules of succession under the Civil Code of the Philippines on the transmission of properties, interests, rights and obligations of the decedent, provided that the minimum amnesty tax for the transfer of the estate of each decedent shall be Five Thousand Pesos (P5,000.00),” the draft IRR states.
In general, the estate’s value will be based on the fair market rate at the time of the decedent’s death.
The zonal value as determined by the BIR and the fair market value as shown in the provincial and city schedule of values, whichever is higher, will determine the final rate, the rules add.
Delinquent taxpayers who wish to avail of the amnesty will be given two years to file their applications.
The estate tax amnesty was among the provisions retained by President Rodrigo Duterte when he partially vetoed Republic Act 11213 or the Tax Amnesty law earlier this year.
The post Draft estate tax amnesty rules released appeared first on The Manila Times Online.