The legislation enacted by Congress to prolong the period for estate tax amnesty application became law on August 5, even without the signature of President Ferdinand “Bongbong” Marcos Jr.
This new law, Republic Act No. 11956, was published in the Official Gazette on August 8. It extends the deadline for availing of the estate tax amnesty until June 14, 2025.
Additionally, the law aims to broaden the scope of the tax amnesty by encompassing the estates of individuals who passed away on or before May 31, 2022.
Article Six, Section 27 of the 1987 Constitution states, “The President shall communicate his veto of any bill to the House where it originated within thirty days after the date of receipt thereof; otherwise, it shall become a law as if he had signed it.”
The estate tax amnesty had expired on June 14.
According to the new law, estate tax payments can now be made in installments over a two-year period from the statutory payment date, without incurring civil penalties or interest.
Payment of the amnesty tax can be accomplished through electronic or manual means. This can be done when submitting the return to an authorized agent bank, Revenue District Officer, Revenue Collection Officer, or an authorized tax software provider.
The law will become effective 15 days after being published in the Official Gazette or in two widely circulated newspapers.
Tax amnesty extension now a law
On May 29, the Senate unanimously passed Senate Bill No. 2219 on its third and final reading.
On May 30, the day following, the House of Representatives endorsed the Senate’s version of the bill.
This endorsement by the House, adopting the Senate’s version, established the possibility for both the Senate and the House to ratify the bill by May 31, coinciding with the conclusion of the First Regular Session of the 19th Congress.
Subsequent to ratification, the President could sign the bill into law.
Albay Representative Joey Salceda, who chairs the House Committee on Ways and Means, emphasized that the Senate’s version of the bill was preferable, as it would benefit approximately 920,000 Filipino families contending with unresolved estate taxes.
“It’s another major win. And it is an enhanced version, since it limits the discretion of BIR (the Bureau of Internal Revenue) on what documents to require and allows payment by installments,” Salceda said.
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