Deadline Approaching Fast: Settle Your ESTATE TAXES Before June 14, 2025 or Face Penalties!

Unlocking Your Family’s Legacy: How the Estate Tax Amnesty Can Free Heirs from Decades of Inheritance Pain

A Family’s Story: The House That Waited

Imagine a family in Bulacan. The matriarch, Lola Pilar, passed away in the 1990s, leaving behind a modest house and a small parcel of farmland. Her children, now in their 60s, grew up, started their own families, and moved on. But the house and land remained in Lola Pilar’s name. For years, the heirs talked about selling the land to pay for a grandchild’s education or renovating the house for family reunions. But every time they tried, they hit the same wall: unpaid estate taxes.

The penalties and interest had ballooned over decades. The process seemed confusing and expensive. The property stayed idle, and the family’s dreams were put on hold.

Now, with the Estate Tax Amnesty deadline approaching on June 14, 2025, Lola Pilar’s heirs have a real chance to finally resolve this painful legacy.

The Pain Point: Why Heirs Struggle with Estate Taxes

Heirs across the Philippines face similar problems:

Skyrocketing Penalties: Unpaid estate taxes accumulate interest and surcharges, making the total due almost impossible to pay.
Complex Paperwork: Many heirs are intimidated by the long list of documents and requirements.
Family Disagreements: Multiple heirs, sometimes living overseas, make coordination difficult.
Frozen Assets: Properties can’t be sold, transferred, or developed while the estate remains unsettled.
Lost Opportunities: Families miss out on potential income, business ventures, or simply the peace of mind that comes with closure.

How the Estate Tax Amnesty Solves These Problems

Here’s how the Estate Tax Amnesty directly addresses the pain points of Filipino heirs:

1. Waives Penalties and Interest

Only the basic estate tax (6% of the net estate) is required-no penalties, no surcharges, no interest.

2. Affordable Settlement

Even long-unpaid taxes can be settled at a fraction of what would otherwise be owed.

3. Streamlined Process

The BIR has simplified requirements and allows for electronic filing and payment.

4. Installment Option

Taxes can be paid in installments over two years, making it easier for families to manage.

5. Legal Immunity

Once settled, the estate is immune from further estate tax liabilities, penalties, and related cases for the covered period.

Table: Estate Tax Amnesty at a Glance

Feature	Details
Coverage	Estates of decedents who died on or before May 31, 2022
Tax Rate	6% of net estate value (minimum ₱5,000 per estate)
Penalties & Interest	Waived
Installment Option	Up to 2 years, no additional penalties or interest
Deadline	June 14, 2025
Required Forms	ETAR (BIR Form 2118-EA), APF (BIR Form 0621-EA), supporting documents
Where to File/Pay	BIR Revenue District Office, Authorized Agent Banks, e-filing options
Immunity Granted	From estate taxes, penalties, and related cases for covered period

Pros and Cons of Availing the Estate Tax Amnesty

Pros

Huge Savings: Pay only the basic tax, not decades of penalties and interest.
Legal Ownership: Finally transfer titles and unlock the value of inherited property.
Peace of Mind: No more fear of legal issues or government liens.
Economic Opportunity: Sell, develop, or use the property for family needs.
Simple Process: Streamlined requirements and payment options.

Cons

Deadline Pressure: All requirements and payments must be completed by June 14, 2025.
Documentation Still Needed: Some paperwork (like death certificates, proof of relationship, asset documents) is still required.
Limited Coverage: Only estates of those who died on or before May 31, 2022 are eligible.
One-Time Opportunity: After the deadline, penalties and interest return.

Frequently Asked Questions (FAQ)

Q: Who can avail of the Estate Tax Amnesty?
A: Heirs, executors, or administrators of estates of persons who died on or before May 31, 2022.

Q: What if we don’t have all the documents yet?
A: You can start the process and consult with the BIR. Some documents (like proof of settlement) can be submitted later, but all requirements must be completed before the deadline.

Q: Can we pay in installments?
A: Yes, you can pay the estate tax in installments over two years, with no additional penalties or interest.

Q: What happens if we miss the deadline?
A: The amnesty benefits (waiver of penalties and interest) will no longer apply, and you’ll have to pay the full amount with all surcharges.

Q: What properties are covered?
A: All properties-real, personal, tangible, and intangible-belonging to the estate of the decedent.

Conclusion: Don’t Let Your Family’s Legacy Stay Frozen

The Estate Tax Amnesty is a once-in-a-generation chance to finally resolve the pain of inherited, idle properties. It’s the key to unlocking your family’s legacy, turning burdens into blessings, and moving forward together.

Don’t wait until it’s too late. Gather your documents, talk to your family, and visit your nearest BIR office or consult a tax professional now. The deadline is June 14, 2025-after that, the door closes and the old problems return.

Take Action Today!

Free your family from the burden of unpaid estate taxes. Avail of the Estate Tax Amnesty before June 14, 2025, and unlock the full potential of your inheritance. Your family’s future is worth it.

Overview of the Philippine Estate Tax Amnesty

The Estate Tax Amnesty in the Philippines is a government program that allows heirs, executors, or administrators to settle outstanding estate taxes at a reduced rate, waiving penalties and interest. This initiative was introduced to help families resolve long-standing estate tax liabilities and facilitate the transfer of inherited assets5 2.

Coverage and Eligibility

Who is Covered: The amnesty covers estates of decedents who died on or before May 31, 2022, regardless of whether the Bureau of Internal Revenue (BIR) has issued an assessment, as long as the estate taxes remain unpaid or have accrued as of that date.
Who Can Avail: Executors, administrators, legal heirs, transferees, or beneficiaries of the estate may avail of the amnesty.

Key Features

Tax Rate: A flat rate of 6% is imposed on the decedent’s total net taxable estate at the time of death, with a minimum amnesty tax of ₱5,000 per estate.
Waiver of Penalties: All penalties, surcharges, and interest associated with late payment are waived.
Installment Payment: Payment of the estate tax may be made in installments within two years from the statutory date of payment, without civil penalties or interest.

Deadline for Filing

Filing Period: The availment period runs from June 15, 2023, to June 14, 2025. All requirements must be completed and submitted by June 14, 2025.
Non-Compliance: Failure to submit the required documents and proof of payment by the deadline will mean non-availment of the amnesty, and any payments made may be applied against the regular estate tax due, including penalties.

Process and Requirements

Step-by-Step Procedure:

Prepare Documents: Gather required documents such as the certified true copy of the death certificate, TINs of the decedent and heirs, government-issued IDs, and proof of estate ownership (e.g., land titles, bank statements).
Compute Tax: Calculate the 6% tax on the net estate value (gross estate minus allowable deductions).
File ETAR: Accomplish and file the Estate Tax Amnesty Return (ETAR, BIR Form No. 2118-EA) and Acceptance Payment Form (APF, BIR Form No. 0621-EA) with the appropriate Revenue District Office (RDO), either electronically or manually.
Pay Tax: Pay the computed estate tax through an Authorized Agent Bank (AAB), Revenue Collection Officer (RCO), or authorized tax software provider.
Submit Proof: After payment, submit the validated ETAR, APF, and proof of payment, along with all required documents, to the RDO.
Receive eCAR: Once all requirements are met, the BIR will issue a Certificate of Availment and an electronic Certificate Authorizing Registration (eCAR), which is necessary for the transfer of estate assets.

Important Notes:

Proof of settlement of the estate (judicial or extrajudicial) is not required at the time of filing and payment, but must be submitted before the eCAR is issued.
One eCAR will be issued per real property; separate eCARs are issued for personal properties.

Immunity and Benefits

Immunity: Estates that have fully complied with all requirements are immune from payment of all estate taxes, penalties, and related civil, criminal, and administrative cases for the period ending May 31, 2022, and prior years.
Government Collection: Since the program’s inception in 2019, the government has collected billions in estate taxes, benefiting thousands of families.

Summary Table

Feature	Details
Coverage	Decedents who died on or before May 31, 2022
Tax Rate	6% of net estate value (min. ₱5,000)
Penalties & Interest	Waived
Installment Option	Up to 2 years, no penalties or interest
Filing Deadline	June 14, 2025
Required Forms	ETAR (BIR Form 2118-EA), APF (BIR Form 0621-EA), supporting documents
Where to File/Pay	Authorized Agent Banks, RDOs, or authorized tax software providers
Immunity Granted	From all estate taxes, penalties, and related cases for covered period

Conclusion

The Estate Tax Amnesty provides a crucial opportunity for heirs and beneficiaries to settle outstanding estate taxes at a significantly reduced cost and with no penalties, but all steps and requirements must be completed by June 14, 2025 to benefit from the program4 3 6.