House Approves Estate Tax Amnesty

Vacant lot in Quezon City

The possibility of estate tax amnesty within the year 2017 has taken one step closer to reality.

GMA Network reports:

The substitute bill seeks to increase tax collection levels by granting amnesty in the payment of unsettled estate taxes and to promote the settlement of estates. 

The amnesty would free-up properties of unsettled estates, with the end goal of generating financial transactions and stimulating economic activity. 

The bill also provides that the tax amnesty shall cover estate taxes for taxable year 2016 and for prior years that have remained unpaid as of December 31, 2016.

The House committee has also approved a substitute bill proposing a single tax rate of six percent on estates based on the value of the net estate.

The measure grants the following immunities and privileges to taxpayers who avail of the tax amnesty:

• Immunity from the payment of estate taxes, civil, criminal, or administrative penalties.

• The taxpayer’s Estate Tax Amnesty Returns for 2016 and prior years shall not be admissible as evidence in all judicial, quasi-judicial, or administrative proceedings.

• The books of accounts and other records of the taxpayer for the years covered by the estate tax amnesty availed of shall not be examined.

To find out what needs to happen next for the realization of the estate tax amnesty, please visit The Manila Survival Guide.