Tags: Estate Tax Amnesty Philippines 2025, estate tax deadline June 15 2025, estate tax amnesty requirements, how to avail estate tax amnesty, BIR estate tax guidelines
Do you or someone you know have unsettled estate taxes from the past years? Good news: there’s still time to breathe new life into old estate concerns—thanks to the Estate Tax Amnesty offered by the Philippine government, extended until June 15, 2025. This is your final window to settle long-standing estate tax liabilities without incurring the hefty penalties and interest that often come with delayed compliance.
In this blog post, we’ll walk you through everything you need to know: what this amnesty is, who can benefit from it, the step-by-step process of availing it, and why it’s crucial not to miss this opportunity.
What is the Estate Tax Amnesty?
The Estate Tax Amnesty is a government relief program that allows heirs or legal representatives of deceased persons to settle unpaid estate taxes without penalties, surcharges, or interest. It applies to estates of persons who died on or before May 31, 2022, giving families a chance to clean up their records and legally transfer ownership of inherited properties and assets.
This amnesty is an extension under Republic Act No. 11956, which amended the previous Republic Act No. 11213, also known as the Tax Amnesty Act. The new law grants an extended period for taxpayers to avail of the estate tax amnesty until June 15, 2025.
Why Is This Important?
Unsettled estate taxes can lead to legal and financial complications. Without a settled estate, heirs cannot legally transfer or sell the inherited properties. In many cases, families are unable to use or manage the assets due to the lack of legal ownership. This situation becomes even more problematic if generations pass without resolving the estate.
The amnesty is a once-in-a-lifetime opportunity to regularize ownership, update titles, and avoid huge tax liabilities in the future. If you wait too long, you may lose this opportunity—and the cost of compliance could skyrocket.
Who Can Avail of the Estate Tax Amnesty?
The amnesty is open to the legal heirs, executors, or administrators of the estate of persons who died on or before May 31, 2022. This includes:
- Estates with or without prior estate tax returns filed;
- Estates with pending BIR assessments;
- Estates under litigation, whether civil or criminal.
However, there are exceptions. Estates involving deliberate tax evasion, fraud, or unlawful schemes may not be covered. It’s best to consult a tax professional or the Bureau of Internal Revenue (BIR) for clarification in such cases.
Benefits of Availing the Amnesty
Here are the major advantages:
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Waiver of Penalties and Interest
You only pay the basic estate tax, with no penalties or interest, regardless of how long the estate has been unsettled.
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Lower Financial Burden
This makes it more affordable for families to process old estates, especially those with limited resources.
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Faster Property Transfers
Settling the estate tax clears the way for legal transfer of titles and other assets, allowing heirs to finally claim what is rightfully theirs.
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Peace of Mind
Families can avoid future legal troubles or property disputes by settling the tax now.
How Much Do You Have to Pay?
Under the amnesty, the estate tax rate is 6% of the net estate value at the time of death. Net estate means the total value of assets minus allowable deductions (like unpaid debts, funeral expenses, etc.).
Example: If the deceased left assets worth ₱5,000,000 and had valid deductions of ₱1,000,000, then the taxable estate is ₱4,000,000. The estate tax due is 6% of ₱4,000,000 or ₱240,000—and that’s it. No penalties. No interest.
Estate Tax Amnesty Requirements
Here’s a list of what you typically need to prepare:
- Certified true copy of the death certificate
- Taxpayer Identification Number (TIN) of the deceased and heirs
- Affidavit of Self-Adjudication or Extra-Judicial Settlement of Estate
- Notarized Declaration of Estate
- List of properties and assets with valuation
- Certified true copy of titles or other proof of ownership
- Payment Form (BIR Form 0621-EA)
- Estate Tax Amnesty Return (BIR Form 2118-EA)
You may also be required to present proof of payments for any real estate tax or other relevant documents depending on the assets involved.
Step-by-Step Guide to Availing the Estate Tax Amnesty
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Secure all necessary documents. Make sure you have complete and accurate records of the deceased’s estate.
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Compute the net estate and tax due. If unsure, visit the nearest BIR office for assistance or consult a certified tax adviser.
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Fill out BIR Forms 0621-EA and 2118-EA. These forms are specific to the amnesty program.
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Pay the estate tax at an Authorized Agent Bank (AAB) or via online channels if available in your area.
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Submit all documents to the BIR RDO (Revenue District Office) where the deceased was last registered.
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Wait for the Certificate of Availment. This will serve as your proof that the estate is fully compliant under the amnesty program.
What Happens If You Miss the June 15, 2025 Deadline?
If you fail to settle the estate on or before the deadline, the regular rules on estate tax will apply. This means:
- Higher penalties and interest will be added to your tax due.
- The process becomes more costly and more difficult.
- You may also face legal risks if the estate remains unsettled for too long.
Worse, if heirs decide to sell or use the inherited assets later, they won’t be able to legally transfer the property unless the estate tax is settled. Don’t let procrastination steal your rightful inheritance or future peace of mind.
Tips to Make the Process Easier
- Start early – Don't wait for the deadline crunch.
- Seek help from a professional – Tax lawyers or CPAs can make the process smoother and faster.
- Double-check documents – Incomplete submissions can delay processing.
- Visit the official BIR website – Download the latest forms and check updated guidelines.
In Summary: Take Action Now
The Estate Tax Amnesty is a limited-time lifeline for Filipino families burdened with unresolved estate taxes. With the June 15, 2025 deadline fast approaching, the time to act is now.
Settle the estate. Claim your family’s inheritance. Unlock the value of long-dormant properties. Most of all, gain peace of mind knowing you’ve fulfilled both your legal and moral obligation.
Don’t wait for tomorrow. The clock is ticking.
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