Legal Research

Republic Act 11213 (Tax Amnesty Act)

- Signed into law on 14 February 2019

- No IRR yet. Per latest update from DOF, target release of IRR and implementation is set on April
2019

Salient Points

Estate Tax Amnesty

- The Estate Tax Amnesty covers the estate of decedents who died on or before 31 December 2017,
with or without assessments duly issued therefore, whose estates have remained unpaid or have
accrued as of 31 December 2017.

- The estate tax amnesty rate is 6% based on the decedent's total net estate at the time of death.

- If an estate tax return was previously filed with the BIR, the estate tax of 6% would be based on
the net undeclared estate.

- The estate tax amnesty may be filed by the Executor, Administrator, legal heirs, transferees or
beneficiaries of the Estate.

- The Estate Tax Amnesty may be availed of within two (2) years from the effectivity of the
Implementing Rules and Regulations (IRR) of the Tax Amnesty Act. It should be filed with the
Revenue District Office (RDO) having jurisdiction over decedent’s last residence by filing a sworn
Estate Tax Amnesty Return. For non-resident decedents, the Estate Tax Amnesty Return should
generally be filed with RDO No. 39.

- Taxpayers who avail of the Estate Tax Amnesty will enjoy immunity from the payment of estate
taxes, civil, criminal, and administrative cases and penalties.

- The Estate Tax Amnesty shall not extend to the following:

1. Estate tax cases which shall have become final and executory; and
2. Properties involved in cases pending in appropriate courts which:
a. Fall under the jurisdiction of the Presidential Commission on Good
Government (PCGG);
b. Involve unexplained or unlawfully acquired wealth under the Anti-Graft and
Corrupt Practices Act and Plunder Act;
c. Involve violation of the Anti-Money Laundering Act;
d. Involve tax evasion and other criminal offenses under Chapter II of Title X of
the Tax Code;
e. Involve felonies of fraud, illegal exactions and transactions, malversation of
public funds and property.
Tax Amnesty on Delinquencies (TAD)

- The TAD covers all national internal revenue taxes such as, but not limited to, income tax,
withholding tax (including those withheld, but not remitted), capital gains tax, donor’s tax, VAT,
other percentage taxes, excise tax and DST collected by the BIR, including VAT and excise taxes
collected by the Bureau of Customs (BOC) for taxable year 2017 and prior years.

Nature of Delinquency Tax Amnesty Rate

(based on the basic tax assessed)
Delinquencies and assessments which have 40%
become final and executory

Tax Cases subject of final and executory 50%

judgment by the courts

Pending criminal cases with criminal 60%

information filed with the Department of
Justice or the courts for tax evasion and other
criminal offenses under Chapter II, Title X and
Section 275 of the Tax Code

Withholding agents who withhold taxes but 100%

failed to remit the same to the BIR

- The TAD may be availed of by any person, natural or juridical, within one (1) year from the
effectivity of the IRR by filing with the RDO having jurisdiction over the residence or principal place
of business of the taxpayer, a Sworn Tax Amnesty on Delinquencies Return accompanied by a
Certification of Delinquency. The payment of the amnesty tax shall be made at the same time the
return is filed.

- For taxpayers who avail of the TAD, the tax delinquency will be considered settled. Moreover,
the taxpayers who avail of the TAD will enjoy immunity from payment of delinquency or
assessment, investigations as well as appurtenant civil, criminal and administrative cases and
penalties under the Tax Code and any pending cases which are all subject of the amnesty.

- Availment of the TAD will result in the termination of criminal cases with the DOJ or courts for tax
evasion & other criminal offenses under Chapter II, Title X & Sec. 275 of the Tax Code and
corresponding civil and administrative cases. Also, any notices of levy, attachments, and warrants
of garnishment will be lifted.
Vetoed Provisions

General Tax Amnesty

For individuals:
- 2% based on the taxpayer's total assets as of December 31, 2017, as declared in the statement
of total assets

- 5% or P75,000, whichever is higher, of an individual, trust, or estate's net worth as of December

31, 2017

For Corporations:

- 5% or P1 million, whichever is higher, for companies with subscribed capital of above P50
million

- 5% or P250,000, whichever is higher, for corporations with subscribed capital of above P20
million up to P50 million

- 5% or P100,000, whichever is higher, for corporations with subscribed capital of below P5

million

- 5% or P75,000, whichever is higher, for juridical entities, including but not limited to
cooperatives and foundations that have become taxable as of December 31, 2017
 TRAIN LAW

- New rates for documentary stamp tax (DST), in case of transfer of shares

Increase of Authorized Capital Stock

1. Certificate of Increase of Capital Stock signed by majority of the directors and certified by
Chairman and Corporate Secretary of the stockholders meeting

2. Treasurer's Affidavit certifying the increase of capital stock, the amount subscribed and the
amount received as payment thereto
 3. List of stockholders as of the date of the meeting approving the increase, showing the
nationalities of the subscribers and their respective subscribed and paid-up capital in the
existing authorized capital stock certified by the corporate secretary

4. Amended Articles of Incorporation;

5. Notarized Secretary's Certificate on no pending case of intra-corporate dispute

6. Directors Certificate - notarized and signed by majority of the directors and the corporate
secretary certifying (i) the amendment of the Articles of Incorporation increasing the
authorized capital stock, (ii) the votes of the directors and the stockholders, (iii) the date and
place of the stockholders' meeting (iv) the tax identification number of the signatories which
shall be placed below their names

7. Notarized Secretary's Certificate attesting that non-subscribing stockholders have waived

their pre-emptive rights or attesting the resolution of the stockholders representing at least
2/3 of the outstanding capital stock approving the issuance of shares in exchange for a
property or previously incurred indebtedness of the corporation.

8. If the foreign equity is increased to more than 40%, compliance with registration under
Foreign Investments Act

9. Compliance Monitoring Division (CMD) Clearance and/or clearance from other Department
of the Commission*

10. Endorsement/clearance from other government agencies, if applicable.