Last chance to settle unpaid estate taxes of decedents
- Ray Talimio Jr.
- 5 days ago
- 3 min read
DEADLINE is fast approaching, and for many Filipino families, this may be the last chance to finally put in order the legal issues of their inherited assets. The Estate Tax Amnesty program under Republic Act (RA) 11956, which expanded and extended the original RA 11213, gives heirs until June 14, 2025, to settle unpaid estate taxes of decedents who passed away on or before May 31, 2022.
This reprieve, extended through Revenue Regulations 10-2023, and explained further in Revenue Memorandum Circular 82-2023, offers a simplified, penalty-free process for families who have long been burdened with unsettled estates. And the government is clear: This may be the final extension.
Under the amnesty, heirs can pay a flat 6-percent estate tax based on the net taxable value of the estate at the time of death — without penalties, interest, or surcharges. That alone can save families hundreds of thousands, even millions of pesos in potential tax liabilities.
Many Filipinos inherited lands or homes decades ago, but never got to transfer titles because they couldn't afford the compounded penalties or didn't know where to start. Others inherited commercial properties but couldn't use them as collateral due to lack of ownership documents. The estate tax amnesty fixes that, offering an affordable and accessible pathway to clear titles and unlock property values.
The key change in RA 11956 is that it now covers deaths that occurred on or before May 31, 2022, instead of the previous cutoff of Dec. 31, 2017. It includes both assessed and unassessed estates, as long as the decedent died before the deadline.
The BIR has also adopted a "Pay Now, Submit Later" policy. This allows families to pay the estate tax on time even if some documents are still being processed — an innovation meant to prevent last-minute rushes that could cause applicants to miss the deadline.
To avail of the amnesty, the following documents are typically required: – Estate Tax Amnesty Return (BIR Form 2118-EA) – Notarized Acceptance Payment Form (APF) – Death Certificate – TIN of the decedent and heirs – Proof of valuation of properties (zonal values or appraisal at time of death) – Extrajudicial settlement or court decision on partition – Special Power of Attorney, if filed by a representative Filing may be done manually at authorized BIR offices or digitally via the Electronic Tax Filing and Payment System (eTIS), with payments remitted to Authorized Agent Banks (AABs) or through electronic platforms.
Not everyone can avail of this program. The Estate Tax Amnesty does not cover the following: – Delinquent estate taxes already covered under a separate tax amnesty for delinquencies – Properties involved in anti-money laundering, fraud, graft, or tax evasion cases – Assets under litigation by the Presidential Commission on Good Government (PCGG) – Estates of non-Filipinos with foreign-situated properties When estate taxes are left unpaid, it is the heirs — not the deceased — who suffer the consequences. Land cannot be sold or mortgaged, property cannot be subdivided among heirs, and business potential is wasted. Some families have spent decades in limbo, unable to develop or use inherited lands due to unresolved tax issues.
This amnesty is a chance to break free.
One of the most controversial aspects of the estate tax issue is the long-standing ₱23-billion estate tax liability of the late President Ferdinand Marcos Sr., ruled final and executory by the Supreme Court in 1997. Reports say this has ballooned to over ₱200 billion with surcharges and penalties.
Public interest remains high on whether this administration will enforce the law uniformly, including within its own family. The BIR has said the Marcos estate may avail of the amnesty, but only if all legal requirements are met and the tax is paid on time. If that happens, it will set a powerful precedent — either for public trust or public backlash.
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Ray G. Talimio Jr. is chairman of the MSME Development Council of Cagayan de Oro and Misamis Oriental, co-chair of the Economic Development Committee of RDC-X, past president and past chairman of the Board of the Cagayan de Oro Chamber of Commerce and Industry Foundation, Inc. (Oro Chamber), and an active national and local officer of the Philippine Institute of Certified Public Accountants (PICPA). He writes regularly on governance, taxation, and public policy under the byline From the Sidelines.
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