House OKs bill extending period of availment of estate tax amnesty

The House of Representatives on Wednesday approved on second reading the measure seeking to extend the period of availment of estate tax amnesty to four years from the current two years.

In a vote of ayes and nays, the chamber approved House Bill 7068, amending Section 6 of RA 11213 or the Tax Amnesty Law.

The Bureau of Internal Revenue defines estate tax as “tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfers, which are made by law as equivalent to testamentary disposition.”

Under RA 11213, a tax amnesty is granted to the estate of decedents who died on or before December 31, 2017, with or without prior assessments, whose estate taxes have remained unpaid or have accrued as of that same date.

But House Committee on Ways and Means chair Joey Salceda, who sponsored the measure on the floor, said the original deadline of availment and payment of the estate taxes has since been extended four times, with the new deadline set on December 31, 2020.

"However, only 23,911 persons have availed of the amnesty, earning only P1.362 billion out of the potential P6 billion plus," he said.

"Thus, it is apt that we extend it through legislation," he added.

The measure was introduced by Majority Leader Martin Romualdez, Tingog Sinirangan party-list Representative Yedda Marie Romualdez, and Deputy Majority Leader Wilter Wee "Sharky" Palma.—LDF, GMA News