Last November 2018, Congress approved their versions of the tax amnesty bill which covers internal revenue taxes, estate tax, real property tax and customs duties that have not been paid as of 2017. This year, we expect the tax amnesty bill to pass into law and placed in effect together with the approval of the TRAIN 2 Package.
The Estate Tax Amnesty will require payment of an amnesty tax at the rate of six percent (6%) of the deceased’s undeclared estate. Penalties for late or non-payments are waived. It applies to estate taxes not paid as of 2017.
The General Tax Amnesty, on the other hand, would cover all national internal revenue taxes, excluding VAT and estate tax, for 2016 and prior years. To avail of this, the filing of a notice and Tax Amnesty Return is required, accompanied by a Statement of Assets, Liabilities and Networth as of December 31, 2016.
The Secretary of Finance also indicated granting amnesty on delinquencies or final assessments at the following proposed amnesty tax rates:
(a) Fifty percent (50%) of the basic tax, for delinquencies and assessments which have become final and for tax cases subject of final and executory judgment; and
(b) Eight percent (80%) of the basic tax, for those with pending criminal cases.
This article does not constitute and is not intended to be legal advice. If you have any question or need any assistance, please feel free to send us an email at roselle.jean@nonatolaw.com.