Estate tax amnesty IRR release seen this week
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Mon, 27 May 2019 16:20:28 +0000
THE Bureau of Internal Revenue (BIR) said on Monday it would finalize this week the implementing rules and regulations (IRR) of the estate tax amnesty program.
In a statement, the tax agency said “the final estate rax regulation” was expected to “be issued within this month.”
This came after the bureau held a public consultation on the proposed IRR, which was among the provisions retained by President Rodrigo Duterte when he partially vetoed Republic Act 11213, or the Tax Amnesty law, earlier this year.
According to the proposed rules, the amnesty shall cover the estate of the deceased who died on or before Dec. 31, 2017.
An estate tax amnesty rate of 6 percent with a minimum tax amnesty amount of P5,000 shall be imposed on the deceased’s total net taxable estate at the time of his or her death without penalties at every stage of property transfer.
This amnesty, however, is not extended to liabilities covered by a separate amnesty on delinquencies that began in April.
Properties involved in cases pending in appropriate courts are also excluded from the latest amnesty.
The estate shall be valued at its fair market value at the time of its owner’s death.
The proposed rules, however, also said the value of the real property at the time of its owner’s death shall be whichever is higher of the zonal values as determined by the BIR chief, or the fair market value as shown in the schedule of values fixed by provincial or city assessors.
Delinquent taxpayers who wish to avail themselves of the amnesty have two years to file their applications with the BIR Revenue District Office (RDO) with jurisdiction over the last residence of the deceased.
“If the [deceased owner] has no legal residence in the Philippines, the return shall be filed with RDO 039 — South Quezon City,” the bureau said.
The BIR expects to collect some P6.28 billion once the program is implemented.
The post Estate tax amnesty IRR release seen this week appeared first on The Manila Times Online.