DOF backs estate tax amnesty extension till 2028

Finance Secretary Frederick Go has backed the House of Representatives’ proposal to extend the estate tax amnesty for another three years.

Go’s approval comes after the House of Representatives committee on ways and means on Nov. 26 approved a consolidated proposal to extend the amnesty tax deadline to Dec. 31, 2028 from the initial Dec. 31, 2024.

Earlier, Go signaled support only for an extension until June 30, 2028.

The committee had been waiting for the official Department of Finance (DOF) position paper, as discussions were delayed due to a recent cabinet shakeup.

In a statement, Go said the extension would give Filipino families more time to settle obligations on inherited properties.

Under the new deadline, applicants must complete the required documentary submissions and pay the amnesty tax by Dec. 31, 2028.

“This will maximize the use of idle assets and boost productivity,” Go said.

The proposal will also provide an installment payment of the tax spread over one year, which the DOF said would help ease the financial burden on families formalizing inheritance. It covers estates of descendants who died on or before May 31, 2022.

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Safeguards were also put in place to curb potential misuse of the measure.

The estate tax, which is imposed under the National Internal Revenue Code, is a one-time payment for the legal transfer of ownership of a deceased person’s assets to the lawful heirs and beneficiaries.

In August 2023, a bill that would move the estate tax amnesty deadline to June 14, 2025 lapsed into law. It amended Republic Act No. 11569, which had previously extended the deadline from June 15, 2021 to June 24, 2023.