Economy

House adopts Senate version of bill extending estate tax amnesty by 2 years

BW FILE PHOTO

THE HOUSE of Representatives has adopted the Senate version of the bill extending the estate tax amnesty in order to ensure it will be signed into law before it expires by mid-June.

The House plenary adopted Senate Bill (SB) No. 2219, which extends the period of availment of the estate tax amnesty for another two years.

The current amnesty period will expire on June 14. Under the bill, the new estate tax amnesty period will run from June 15, 2023 to June 14, 2025.

“We will adopt the Senate version. Those are minor provisions especially dates, we’re talking about the extension of the estate tax amnesty plus they placed there the provisions on the manner of payments and documents so we will adopt the Senate version,” Majority Floor Leader and Zamboanga City Rep. Manuel Jose M. Dalipe said at a briefing before the plenary adopted the Senate version.

House Ways and Means Committee chairman and Albay Rep. Jose Ma. Clemente S. Salceda earlier sent an aide memoire addressed to House Speaker Ferdinand Martin G. Romualdez and Mr. Dalipe recommending that the House adopt SB 2219.

Both the House and Senate versions sought to expand the coverage of the amnesty, which currently only covers the estates of those who died on or before Dec. 31, 2017.

Mr. Salceda said he has no objection in adopting the Senate version which includes unsettled estates of those who died on or before May 31, 2022.

The version approved by the House covers estates of those who died on or before Dec. 31, 2022.

The Senate bill also prevents the Bureau of Internal Revenue (BIR) from arbitrarily imposing other requirements which may delay the processing of applications.

It also clarified that the proof of settlement is only required for the issuance of Electronic Certificate Authorizing Registration for transfer of properties, not for payment of estate tax.

Under the Senate version, the payment of the estate tax may also be done in installments within two years from the statutory date for the payment without civil penalty or interest.

The measure also allows taxpayers to pay the amnesty tax either manually or electronically through any authorized agent bank, a revenue district office, or an authorized tax software provider.

“Considering that the changes between the Senate and House versions do not materially impair the intentions of each House, foremost of which is to extend the effectivity of the Estate Tax Amnesty for another two years or up to June 14, 2025, this representation recommends that the House adopt the Senate version, to ensure that the bill can be signed into law before the current estate tax amnesty expires,” Mr. Salceda said.

Once the House adopts the Senate version, there will be no need to convene the Bicameral Conference Committee. The measure will be sent directly to Malacañang for President Ferdinand R. Marcos, Jr.’s signature. — Beatriz Marie D. Cruz

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