Estate Tax: 5 Things You Should Need To Know (2021 Update)

Do you have a property in the Philippines still under the name of your deceased loved ones like Grandfather, Grandmother, Parent, or Spouse? If YES, you need to file an estate tax return after the person’s death to transfer the land title to the heirs.

What is the Estate Tax?

A tax is paid on the right of the deceased person to transfer his/her estate to his/her lawful heirs and beneficiaries at the time of death.

When to pay for the Estate Tax?

The decedent’s estate tax return is filed within six months for those who died in 2017 or prior years. And within one year for those who died from 2018 onwards. 

What if the Executor, Administrator, or the Heirs failed to file an Estate Tax return within the prescribed period? 

On February 14, 2019, President Rodrigo R. Duterte signed Republic Act No. 11213, otherwise known as the Tax Amnesty Act. The Estate Tax Amnesty covers the estate of decedents who died on or before December 31, 2017, with or without assessments duly issued, whose estate taxes have remained unpaid or have accrued December 31, 2017. 

How much should I pay to avail of the Tax Amnesty?

Those who are qualified to avail of the Estate Tax Amnesty, a rate of six percent 6% based on the decedent’s NET TAXABLE ESTATE determined at the time of death without penalties. 

How to pay the Estate Tax in the Philippines? 

The Estate Tax Amnesty return, together with the complete documentary requirements, shall be filed within June 2019 to June 2021 to the Revenue District Office (RDO) having jurisdiction over the last residence of the person/s at the time of his death.

Checklist of Documentary Requirements:

1. PSA Certified True Copy of Death Certificate (DC);
2. Tax Identification No. (TIN) of decedents and heirs;
3. Filled up Estate Tax Amnesty Return (ETAR);
4. Estate Tax Acceptance payment form;
5. Notarized Extrajudicial Settlement among heirs;
6. Certification of the Barangay Captain for the last residence of the decedent;
7. Valid ID of the authorized representative;
8. Certificate of Landholdings;
9. NSO/PSA Certified True Copy of the Marriage Certificate;
10. NSO/PSA Certified True Copies of the Birth Certificates;
11. Publication in a newspaper of general circulation;
12. Photocopy owner’s duplicate copy and certified copy of TCT;
13. A Certified True Copy of Tax Declaration and or the tax declaration at the time of death or the succeeding available tax declaration issued nearest to the time of death of the decedent;
14. A Certified True Copy of Tax Declaration Building and the tax declaration at the time of death or the succeeding available tax declaration issued nearest to the time of death of the decedent;
15. Original Copies of the Real Property Tax Clearance(s) and the improvement constructed thereon;

Don’t wait for the deadline to avail of the Tax Amnesty. If you don’t have time to prepare the documents and process, we can do it for you. 

Email us at inquiry@cebubai.com or call MC Dela Fuente Realty at +63 917 796 5825.

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