Death and taxes

The House of Representatives recently approved a bill that would extend the estate tax amnesty period until Dec. 31, 2028.

- MARY ANN LL. REYES

This would cover the estate of decedents who died on or before Dec. 31, 2024, with or without assessments issued, whose estate taxes have remained unpaid or have accrued as of the same date.

This estate tax is a onetime payment for the legal transfer of ownership of a deceased person's assets to their lawful heirs and beneficiaries.

House Bill 6614 also provides that payment by installment shall be allowed within two years from the statutory date for its payment without penalty and interest and the minimum initial payment shall be at least 25 percent of the total amount due.

According to the Department of Finance, it supports the estate tax amnesty bill since this would give more Filipino families the opportunity to settle obligations on inherited properties and grant relief to families who are unable to formalize inheritance because of financial and other constraints.

At present, the government imposes a flat estate tax rate of six percent on the net value of the estate of the decedent as per the Tax Reform for Acceleration and Inclusion or TRAIN Law, effective 2018.

As Benjamin Franklin once said, "in this world, nothing is certain except death and taxes." Even after one's death, the government will tax whatever properties that the decedent will pass on to his lawful heirs or beneficiaries.

Interestingly, there is another bill, House Bill 6563 introduced by 1 Tahanan Party-List Rep. Nathaniel Oducado and filed just last Dec. 2, which this time, wants to have the estate tax abolished.