A HOUSE of Representatives committee approved a proposal extending the estate tax amnesty to 2028, citing the need to encourage the settlement of outstanding estate tax liabilities.
The House Ways and Means Committee approved an unnumbered substitute bill consolidating five measures to extend the estate tax amnesty to Dec. 31, 2028, which would require taxpayers to make an initial payment of at least 25% of their outstanding balance.
Legislators said the Bureau of Internal Revenue (BIR) will set the settlement percentage schedules for the remaining balance over up to two years.
Heirs of properties of individuals who died on or before Dec. 31, 2024 will be eligible to avail of the estate tax amnesty, according to a copy of the substitute bill presented during the committee hearing.
“This would give Filipinos the opportunity to settle family documents and property, which can then be used for personal or economic purposes,” Marikina Rep. Romero Federico S. Quimbo, who heads the House tax panel, said in a statement after the bill hurdled the committee. “This will also expand the country’s tax base.”
The estate tax amnesty extension is among President Ferdinand R. Marcos, Jr.’s legislative priorities.
The Department of Finance (DoF) was pushing for an extension to June 30, 2028 instead of the end of that year, Director Maria Karla L. Espinosa said at the same hearing.
She said the DoF also wanted no changes to the coverage expansion, which would now cover those who died on or before December 2024.
“So there will be no expansion of the coverage,” Ms. Espinosa said. “However, (Finance Secretary Frederick D. Go) did mention that we will submit to the wisdom of Congress if they decide to extend the coverage.” — Kenneth Christiane L. Basilio