MANILA, Philippines – The House of Representatives approved on 3rd and final reading two bills granting amnesty in the payment of estate taxes and simplifying the estate tax rate at 6% on Monday, February 13.
HB 4814 allows a person to be exempted from paying the estate taxes on the property of a deceased loved one from taxable year 2016 to prior years. (READ: Quimbo: Political will in drug war should also be applied in taxation)
A taxpayer interested to avail of the tax amnesty must file an Estate Tax Amnesty Return at the Bureau of Internal Revenue and "pay the 6% of the descendant's net estate within two years from the issuance of the IRR (Implementing Rules and Regulations) of this Act."
The amnesty on estate tax, however, is not applicable to the following:
HB 4815, meanwhile, is proposing a single estate tax rate of 6% based on the value of the net estate.
Under current laws, heirs are exempted from paying the estate tax if the net estate is worth P200,000. Heirs to properties worth P10 million and above have to pay P1.2 million plus the 20% of the excess above P10 million. – Rappler.com