DOF backs bid to extend tax amnesty until Dec. 2028

The Department of Finance (DOF) on Tuesday expressed support for a proposed measure that would extend the Estate Tax Amnesty until December 31, 2028.

In a statement, the DOF said House Bill 6614 would allow more Filipino families to settle obligations on inherited properties.

“This will maximize the use of idle assets and boost productivity,” Finance Secretary Frederick Go said.

Under the National Internal Revenue Code (NIRC), the estate tax is a one-time payment required for the legal transfer of a deceased person’s assets to their lawful heirs and beneficiaries.

Through the Estate Tax Amnesty, the DOF said it seeks to provide relief to families unable to formalize inheritance due to financial or other constraints.

HB 6614 is a substitute bill that consolidated 10 separate measures filed in the House of Representatives by several lawmakers.

It seeks to amend Republic Act 11956, which, in turn, amended the original Estate Tax Amnesty law, allowing heirs of those who died on or before May 31, 2022, to pay a flat 6% estate tax rate without surcharges, penalties, or interest. This program expired on June 14.

The Finance Department said the new proposal covers the estates of descendants who passed on or before May 31, 2022, and includes safeguards to prevent potential misuse.

To ensure fairness and minimize discretion in granting estate tax amnesty, the DOF said applicants must comply with documentary requirements and pay the amnesty tax by December 31, 2028.

The proposal also allows the amnesty tax to be paid in installments over one year from the issuance of the Acceptance Payment Form, the DOF said.

Noncompliance with the requirements, the department added, will subject the estate to the penalties and surcharges imposed under the NIRC.—MCG, GMA Integrated News