BIR Issuances – RR 10-2023

The BIR issues amendments on certain provisions of Revenue Regulations No. 6-2019, as amended, to implement the extension of extension of the period of availment of the Estate Tax Amnesty 

Revenue Regulations (RR) No. 10-2023

8 September 2023

Effectivity Date: The Circular takes effect immediately from date of its publication of its publication in the newspaper of general circulation or Official Gazette

Published: Manila Bulletin on 12 September 2023

The following are the salient provisions of the RR:

COVERAGE:

Section 2. Coverage – The estate tax amnesty shall cover the estate of decedents who died on or before May 31, 2022, with or without assessments duly issued therefor, whose estate taxes have remained unpaid or have accrued as of May 31, 2022.

TIME AND PLACE OF FILING ESTATE TAX AMNESTY RETURN:

Section 9. Time and Place of Filing Estate Tax Amnesty Return (BIR Form 2118-EA) and Payment of Estate Tax Due. –

For purposes of these Regulations, the Estate Tax Amnesty Return (ETAR) (BIR Form No. 2118-EA) (Annex B) shall be filed and paid, either electronically or manually, by the executor or administrator, legal heirs, transferees or beneficiaries, who wish to avail of the Estate Tax Amnesty within June 15, 2023 until June 14 2025 with any authorized agent bank, through revenue collection officer of any Revenue District Office (RDO) or authorized tax software provider as defined in Revenue Memorandum Order (RMO) No. 8-2019.

The duly accomplished and sworn ETAR, together with the Acceptance Payment Form (APF-BIR Form No. 0621-EA) (Annex C) and the complete documents shall be presented to the concerned RDO.

The documents to be submitted shall be limited to the following:

1. Mandatory Requirements:
   1. Certified True Copy of the Death Certificate (DC) or if not available the Certificate of No Record of Death from the Philippine Statistics Authority and any valid secondary evidence including but not limited to those issued by any government agency/office sufficient to establish the fact of death of the decedent;
   2. Taxpayer Identification Number (TIN) of decedent and heir/s;
   3. For “Claims Against the Estate” arising from contract of loan, notarized promissory note, if applicable;
   4. Proof of the claimed “Property Previously Taxed,” if any;
   5. Proof of the claimed “Transfer for Public Use,” if any; and
   6. At least one (1) government issued identification card (ID) of the Executor/Administrator of the Estate, or if there is no executor or administrator appointed, the heirs, transferees, beneficiaries or authorized representative.
2. For Real Property/ies, if any
   1. Certified true copy/ies of the transfer/original condominium certificates of title of real property/ies;
   2. Certified true copy of the tax declaration of real property/ies, if untitled, including the improvements at the time of death or the succeeding available tax declaration issued nearest to the time of death of the decedent, if none is available at the time of death; and
   3. Certificate of No Improvement issued by the assessor’s office at the time of death of the decedent, if applicable.
3. For Personal Property/ies, if applicable
   1. Certificate of Deposit/Investment/Indebtedness owned by the decedent alone or decedent and the surviving spouse, or decedent jointly with other;
   2. Certificate of Registration of vehicle/s and other proofs showing the correct value of the same;
   3. Certificate of Stocks;
   4. Proof of valuation of shares of stock at the time of death; or
   5. Proof of valuation of other types of personal property.
4. Other Requirements, if applicable
   1. Duly notarized original Special Power of Attorney (SPA), if the person transacting/processing the transfer is the authorized representative or one of the heirs, designated as executor/Administrator;
   2. Certification from the Philippine Consulate or Apostille, if the document is executed abroad; or
   3. Location Plan/vicinity map if the zonal value is not readily available.

Provided, however, that in the absence of the abovementioned documents, the Commissioner may request for alternative documents, as may be deemed appropriate.

Within five (5) working days from the receipt of complete documents, the concerned RDO shall either endorse the APF for payment of the estate amnesty tax with the Authorized Agent Banks (AABs), Revenue Collection Officers (RCOs), or authorized tax software provider, or shall notify the taxpayer in case there is any deficiency in the application. Only the duly endorsed APF shall be presented to and received by the AAB, RCO or authorized tax software provider.

Proof of settlement of the estate, whether judicial or extra judicial, need not accompany the ETAR if it is not yet available at the time of its filing and payment of taxes, but no electronic Certificate Authorizing Registration (eCAR) shall be issued unless such proof is presented and submitted to the concerned RDO.

After payment, the duly accomplished and sworn ETAR and APF with proof of payment, together with the complete documentary requirements, shall be immediately submitted to the concerned RDO in triplicate copies. Failure to submit the same until June 15, 2025 is tantamount to non-availment of the Estate Tax Amnesty and any payment made may be applied against the total regular estate tax due inclusive of penalties.

Installment payment shall be allowed within two (2) years from the statutory date of its payment without civil penalty and interest.

IMMUNITIES:

Section 16. Immunities and Privileges of Availing Estate Tax Amnesty. — Estates covered by Estate Tax Amnesty, which have fully complied with all the conditions set forth hereof, including the payment of estate tax amnesty, shall be immune from the payment of all estate taxes as well as any increments and additions thereto, arising from the failure to pay any and all estate taxes for the period ending May 31, 2022 and prior years, and from all appurtenant civil, criminal and administrative cases, and penalties under the 1997 Tax Code, as amended.

A copy of the RR can be accessed thru this link (Revenue Regulations No. 10-2023)