1M Filipino families to gain from tax amnesty extension
MANILA, Philippines — A new two-year extension of the estate tax amnesty is expected to benefit at least one million Filipino families, House Speaker Ferdinand Martin Romualdez said Wednesday.
During House deliberations on the extension, as outlined in House Bill No. 7909, concerned agencies provided the estimate of potential beneficiaries. Romualdez is the primary author of this bill.
Republic Act No. 11956 provides Filipinos an extension until June 14, 2025, to meet their estate tax obligations, following the law’s expiration last June 14. The measure became law last Tuesday.
Romualdez said the new extension allows beneficiaries ample time “to avail themselves of the amnesty and lower tax rates so they could settle their estate tax obligations and use the properties and other assets they have inherited from their dead loved ones.”
“Many are still recovering from the Covid-19 pandemic, and the amnesty deadline has already been extended once expired. Another law is needed that will benefit many Filipino families,” said Romualdez.
He said that beneficiaries encompass legal heirs, as well as estate executors and administrators. The Speaker emphasized that settling estate taxes would lead not only to added tax revenue for the government but also the expedited distribution and use of inherited properties.
“Developing these assets will not only benefit the owning families but the entire community as well,” the Speaker added.
The sale and potential development of these properties are expected to foster income, job creation, and economic activities.
The Speaker further encouraged potential beneficiaries to capitalize on the proposed extension and appealed to the Bureau of Internal Revenue (BIR) to streamline the amnesty application process and permit online submissions, especially catering to overseas Filipino workers.
The challenges brought by the pandemic have made it difficult for many heirs, particularly those in remote regions, to utilize the benefits of the law, RA 11213 or the Tax Amnesty Act, implemented on February 14, 2019.
“They have already suffered enough because of the pandemic. Let’s not make the situation more difficult for them by giving them more time to avail themselves of those benefits,” he remarked.
The House recently endorsed the estate tax amnesty extension proposal with an impressive 259 votes.
Under RA No. 11213, beneficiaries had until June 15, 2021, to apply for amnesty. This legislation pertained to the estates of individuals who passed away on or before December 31, 2017, regardless of any assessments, with outstanding estate taxes up to the same date.
Those availing amnesty under this law would be granted immunity from certain civil, criminal, and administrative cases and penalties based on the 1997 Tax Code.
In response to the Covid-19 pandemic’s challenges, Congress revised the law in June 2021 to include a two-year extension, resulting in RA No. 11569.
RELATED STORIES
Senate OKs bill extending estate tax amnesty till 2025
Zubiri: House should’ve OK’d estate tax amnesty bill earlier if it wants Senate’s quick passage
This article was generated with the aid of artificial intelligence and reviewed by an editor.
