MANILA, Philippines — Senator Juan Miguel “Migz” Zubiri has filed a new bill in the Senate seeking to extend the estate tax amnesty period until December 31, 2028.
Senate Bill No. 1865 aims to provide a third extension for the settlement of estate taxes to help Filipino families, particularly from low- and middle-income sectors, who are struggling to regularize inherited properties due to financial constraints.
Key Provisions of the Bill:
- New Deadline: If passed, the deadline for availment will move from the previous date of June 14, 2025 (which has already lapsed) to December 31, 2028.
- Expanded Coverage: The bill proposes to cover the estates of individuals who died on or before December 31, 2024. This is an update from the previous law, which only covered deaths occurring on or before May 31, 2022.
- Fixed Tax Rate: Under the amnesty program, heirs only need to pay a flat rate of 6 percent of the deceased person’s net estate, waiving the usual heavy penalties and interests.
Why the Extension is Being Pushed
Senator Zubiri noted that despite previous extensions, many families still face “serious obstacles” in settling taxes. Without the amnesty, late payments are subject to:
- A 25-percent penalty for late payment.
- A 50-percent penalty for cases of willful neglect or fraudulent returns.
- An annual interest rate of 12 percent.
By extending the deadline, the government hopes to encourage more citizens to settle their obligations, which in turn helps clear land titles and stimulates the real estate market.