House panel OKs proposal to extend estate taxes amnesty to December 2028

MANILA, Philippines — The House of Representatives’ committee on ways and means has approved a consolidated proposal to extend the tax amnesty for estate taxes of decedents who died on December 31, 2024, to December 31, 2028.

During the committee’s hearing on Wednesday, chairperson and Marikina Rep. Miro Quimbo said that the panel has decided to push for a bill that would amend Republic Act No. 11569—a week after discussions were stalled due to a change in the Department of Finance (DOF) leadership.

According to Quimbo, the committee is pushing for a December 31, 2024 cutoff for unpaid estate tax because they cannot set a date in 2025, as there are no penalties imposed yet for this year.

“So, the proposal of the committee is to make the cutoff of the decedent’s death to 31 December 2024. And the period of availment […] availment period naman ay to December 31, 2028. So, just very briefly, the reason for the cutoff of December 31 is that, obviously, it cannot go beyond 2024 kasi kapag namatay ka ng 2025, wala ka pa namang penalties to speak about, ‘di ba?” Quimbo said.

“So, it will only promote people not filing because if we keep prolonging, it also affects the collection kapag binigyan mo sila ng window. So, nilagay din natin at December 31 because ang anticipation natin dito is it will take some time also […] pagdating sa Senate before they actually approve of this matter,” he added.

Quimbo then turned to the DOF representative, asking if the said department has already made a stand on the estate tax amnesty proposal. According to the DOF, they have yet to submit a position paper, but Finance Secretary Frederick Go gave the green light for an extension until June 30, 2028.

“Mr. Chair, we were able to, short of submitting an official position paper […] which we will be doing, we have managed to obtain our Secretary’s position on actually those two matters. But it’s not so straightforward because I would say no to the extension only because the date that we have secured approval for is June 30, 2028. That makes it a three-year extension, Mr. Chair,” the DOF representative said.

“So it varies by a few months. And as to the coverage, the secretary approved that we support the coverage of estates of decedents who passed on or before the original date. So there will be no expansion of the coverage, however, he did mention that we will submit to the wisdom of Congress if they decide to extend the coverage,” she added.

Quezon City Rep. Bong Suntay said that the date can be discussed later on, noting that the measure should be approved already since both the legislative and the executive department agree on the need for an estate tax amnesty.

Amendments can still be made on the proposed measure, either through plenary deliberations before second reading approval or when the bill is sent to the Senate for its own set of discussions.

“As we have discussed, the key points for the committee to consider are that extending the estate tax amnesty has broad support, not only from the various legislators, but as mentioned, from the executive department, date lang naman ang ating pinagtatalunan, mabilis lang ayusin pagdating sa Senado,” Suntay said.

“With this, Mr. Chair, may I move that we adopt the amendments which were proposed in the measures that has been filed,” he added.

Last November 20, the committee held hearings on two tax-related proposals—the estate tax amnesty and excise tax on single-use plastics. No decision, however, has been reached because the DOF asked to wait for the new secretary’s stand.

DOF Director IV Maria Karla Espinosa of the department’s Policy, Research and Liaison Office said back then that they are still waiting for Go’s policy direction.

“At the outset Mr. Chair, please allow me to manifest that the Department of Finance is currently in a period of transition following the recent change in our leadership,” Espinosa told Quimbo.

“In deference to the developing policy direction of our new secretary, we have not yet finalized or submitted an official position paper on all the bills present before the committee. We are still aligning with the new secretary’s policy direction and guidance,” she added.

Go, the former Special Assistant to the President for Investment and Economic Affairs, was named acting head of the DOF following former Secretary Ralph Recto’s appointment as Executive Secretary.

Recto replaces former executive secretary Lucas Bersamin, who reportedly resigned amid the issues surrounding alleged budget insertions and kickback schemes.

Espinosa assured Quimbo that she will relay what happened at the committee hearing when they meet Go. Quimbo replied by saying that the committee will wait.

Last May 2023, during the 19th Congress, the House approved on third reading a bill that would move the estate tax amnesty deadline to June 14, 2025, instead of June 15, 2023.

It was not signed by Marcos, but it lapsed into law last August 2023.

RA 11956 amended RA 11569—the law signed by former President Rodrigo Duterte, which pushed back the estate tax amnesty deadline to June 15, 2023.

RA 11569’s intention was to enhance revenue collection by granting amnesty on unpaid internal revenue taxes imposed by the national government, for the taxable year 2017 and prior years.

This means that the estate of descendants who died on or before December 31, 2017—with or without assessments duly issued thereof, and whose estate taxes remained unpaid or have accrued as of the same date—were covered.