Tax Amnesty in the Philippines

1. TAX AMNESTY
By: Atty Rester John Nonato

2. Introduction
• Republic Act (RA) No. 11213 was enacted by the Congress in July
23, 2018
• Amnesty Law has 3 main parts:
a) Estate Tax Amnesty
b) General Tax Amnesty
c) Tax Amnesty on Delinquences
General Tax Amnesty Portion has been vetoed by President Duterte
The last tax amnesty law was Republic Act (RA) No. 9480 and was
enacted by Congress in February 2007.

3. Estate Tax Amnesty
COVERAGE
• Taxes covered: Estate of Decedents who died
on or before December 31, 2017 with or without
assessments whose estate taxes have remained
unpaid or have accrued as of December 31,
2017

4. • Exclusions: Estate Tax Cases which have become final
and executory and those with pending cases:
- falling under the jurisdiction of the PCGG
- Involving unexplained or unlawfully acquired wealth
under Anti-Graft Law
- Involving violations of Anti Money Laundering Law
- Involving Tax Evasion and other Tax Violations
- Involving Frauds and Malversation of Public Funds

5. ENTITLEMENT:
Estate Amnesty Tax of 6% based on decedent’s total net
estate at the time of death.
If the allowable deductions applicable at the time of death
of the decedent exceed the value of the gross estate, the
minimum tax amnesty tax payable shall be P5,000

6. When and Where to Avail?
• Availment shall be within 2 years from the
effectivity of the Implementing Rules and
Regulations of the Tax Amnesty Law
• Availment or filing shall be with the RDO which
has jurisdiction over the last residence of the
decedent.
• Using a Sworn Tax Amnesty Return in a form
prescribed by the IRR
• Payment shall be at the time Return is filed

7. • For NONRESIDENT DECEDENTS, the Estate Tax Amnesty Return
shall be filed and the corresponding amnesty tax be paid at RDO 39
or RDO indicated in the IRR.
• If the Estate involved has properties which are still in the name of
another decedent, the present holder, heirs, executors or
administrators thereof shall only file 1 Estate Tax Amnesty Return
and pay the estate amnesty tax at the time of death of the last
decedent arising from the transfer of such estate from all prior
decedents or donors through which the property or properties
comprising the estate shall pass.

8. • The RDO shall issue and endorse an acceptance payment form as
proof of settlement of estate.
• The availment of the Estate Tax Amnesty and the issuance of the
corresponding Acceptance Payment Form do not imply any
admission of criminal, civil or administrative liability.
• Immunity from the payment of all estate taxes as well as any
increments and additions thereto, arising from the failure to pay any
and all estate taxes for taxable year 2017 and prior years and from
all appurtenant civil, criminal, and administrative cases.

9. TAX AMNESTY ON DELINQUENCIES
• Covers all NIRC such as income tax, withholding tax,
CGT, donor’s tax, VAT other percentage taxes, excise
taxes and DST collected by the BIR and VAT and excise
taxes collected by the Bureau of Customs for taxable
year 2017 under the following instances:
– Delinquences and assessments which have become final and
executory where the application for compromise based on
doubtful validity of assessment or financial incapacity of the
taxpayer was denied.

10. • Pending criminal cases with DOJ for tax evasion with or
without assessments
• Tax cases subject of final and executory judgment by the
courts
• Withholding tax agents who withheld taxes but failed to
remit the same to the BIR

11. Entitlement to Tax Amnesty on Delinquencies
a) Delinquencies and assessments which have become final and
executory – 40% of the basic tax assessed.
a) Tax cases subject of final and executory judgment by the courts –
50% of the basic tax assessed
b) Pending criminal cases with criminal information filed with the DOJ
for tax evasion – 60% of the basic tax assessed
a) Withholding agents who withheld but failed to remit – 100% of the
basic tax assessed

12. When and Where to file?
- Availment shall be within 1 year from the effectivity of
the IRR
- file with RDO which has jurisdiction over the residence
of principal residence or place of business of the tax
payer, a sworn Tax Amnesty Form and a Certification of
Delinquency.
- Payment of Tax shall be at the time of filing

13. -The RDO shall issue and endorse an Acceptance
Payment Form
- The availment of the Tax Amnesty on Delinquences
and the issuance of the corresponding Acceptance
Payment Form do not imply any admission of criminal,
civil or administrative liability on the part of the availing
taxpayer.

14. Immunities and Privileges:
- Criminal Cases and its corresponding civil or
administrative case shall be dismissed
- Taxpayer immune from all suits or actions
including the payment of said delinquency or
assessment, and from all appurtenant civil, criminal,
and administrative cases

15. CONFIDENTIALITY
- Any information or data contained in, derived from or provided by
a taxpayer in the Tax Amnesty Return, Statement of Total Assets
Liabilities and Networth, and appurtenant documents shall be
confidential in nature and shall not be used in any investigation or
prosecution before any judicial, quasi-judicial, and administrative
bodies.