Tax Alert No. 48 [Revenue Regulations (RR) No. 17-2021 dated 26 July 2021]

Amending Certain Provisions of Revenue Regulations (RR) No. 6-2019 to Implement the Extension of the Estate Tax Amnesty Pursuant to Republic Act (RA) No. 11569, Which Amended RA No. 11213, Otherwise known as the “Tax Amnesty Act” 

The Secretary of Finance has issued RR No. 17-2021 to implement the extension of the Estate Tax Amnesty.

The salient amendments are as follows:

• The Estate Tax Amnesty Return (ETAR) shall be filed not later than 14 June 2023.
• The duly accomplished and sworn ETAR, together with the Acceptance Payment Form (APF) and complete documents as enumerated in the ETAR shall be presented to the concerned Revenue District Office (RDO).
• Within five (5) working days from the receipt of the documents, the RDO shall either endorse the APF for payment of the estate tax amnesty with the Authorized Agent Banks (AABs) or Revenue Collection Officers (RCOs) or shall notify the taxpayer of any deficiency in the application.
• Proof of settlement of the estate need not accompany the ETAR if it is not yet available at the time of its filing, but no Certificate Authorizing Registration (eCAR) shall be issued unless such proof is submitted to the concerned RDO.
• After payment, the ETAR and APF, together with the complete documentary requirements, shall be submitted in triplicate copies and failure to comply until 14 June 2023 is tantamount to non-availment of the Estate Tax Amnesty.
• Until such time that the eCAR system is capable of generating one (1) eCAR for all properties covered by a single transaction, one (1) eCAR shall be issued per real property, including any improvements, covered by a Certificate of Title or Tax Declaration for untitled properties. For personal properties included in the estate, a separate eCAR shall be issued.
• The eCAR shall only be issued upon submission of the proof of estate settlement (e.g., Extrajudicial Settlement of Estate or Copy of Court Order). The properties not indicated in the ETAR filed shall likewise be excluded from the eCAR, unless additional estate tax payment shall be made if submission is within tax amnesty period. Otherwise, the additional payment for additional properties shall be subject to applicable estate tax rate including interests and penalties.

The Regulations shall take effect on 19 August 2021 (i.e., 15 days following its publication on 4 August 2021 in a newspaper of general circulation).

You may access the full version of the Regulations and its annexes through the BIR website.