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BIR Estate Tax : Amends pertinent provisions of Sections 9 and 10 under RR No. 12-2018



RR No. 8-2019Amends pertinent provisions of Sections 9 and 10 under RR No. 12-2018
(Published in Malaya Business Insight on June 26, 2019)Digest | Full Text | Form 0620 | Form 1621
June 25, 2019

BIR : Implements the provisions of Estate Tax Amnesty pursuant to Republic Act No. 11213 (Tax Amnesty Act)






RR No. 6-2019Implements the provisions of Estate Tax Amnesty pursuant to Republic Act No. 11213 (Tax Amnesty Act)
(Published in Malaya Business Insight on May 31, 2019)Digest | Full Text | Annex A | Annex B Guidelines | Annex C | Annex D
May 31, 2019

Implements the provisions of Estate Tax Amnesty pursuant to Republic Act No. 11213 (Tax Amnesty Act)

RR No. 6-2019Implements the provisions of Estate Tax Amnesty pursuant to Republic Act No. 11213 (Tax Amnesty Act)
(Published in Malaya Business Insight on May 31, 2019)Digest | Full Text | Annex A | Annex BGuidelines | Annex C | Annex D
May 31, 2019

BIR to finalize rules governing tax amnesty this month

[ bworldonline.com ]
PHILIPPINE STAR/KRIZJOHN ROSALES
THE Bureau of Internal Revenue (BIR) is set to finalize the revenue regulations (RR) covering the tax amnesty this month after making the rounds of public consultations.

“The BIR conducted public consultations to discuss the proposed Revenue Regulations (RR) to implement the provisions of Republic Act (RA) 11213 relative to the Estate Tax Amnesty,” the BIR said in a statement on Monday.

“It is expected that the final estate tax regulation will be issued within this month,” according to BIR.

Section 2a of RA 11213 which was signed into law by President Rodrigo R. Duterte on Feb. 14, authorizes the government to “provide a one-time opportunity to settle estate tax obligations through an estate tax amnesty program that will give reasonable tax relief to estates with deficiency estates taxes.”

Under the proposed RR, only the estates of persons who died on or before Dec. 31, 2017 are to be covered by the estate tax amnesty, with the rate set at 6% with a minimum tax amnesty amount of P5,000 on each decedent’s total net taxable estate at the time of death without penalty at every stage of transfer of property.

Delinquent estate tax liabilities which are final and executory in which the tax amnesty on delinquencies may be applied and properties which are involved in legal cases in courts are not covered by the estate tax amnesty.

The estate shall be valued at fair market value (FMV) at time of death, with the value of real property reckoned at whichever is higher of the zonal value as determined by the Commissioner or the FMV as stated on the schedule of values set by the provincial or city assessor.

The proposed regulations give taxpayers two years starting with the effectivity of the finalized RR, to file the Estate Tax Amnesty Return (ETAR) or BIR Form No. 2118-EA in three copies at the Revenue District Office (RDO) having the jurisdiction over the decedent’s last residence.

In the absence of a legal residence, the return shall be filed with RDO 039 — South Quezon City, as stated on the proposed RR.

Package 1B of the Comprehensive Tax Reform Program (CTRP) includes the provision of an estate tax amnesty, a tax amnesty on delinquencies, and a general tax amnesty, which are all outlined Section 2 of the RA 11213.

Mr. Duterte, however, vetoed RA 11213’s provision on general tax amnesty, saying that the Philippines needs first to ease its bank secrecy law to avoid fraud.

Legislators have yet to re-file a measure calling for a general tax amnesty that addresses the veto concerns.

The tax amnesty on delinquencies started being implemented on April 24.

The Department of Finance has said that it hopes other packages of the CTRP will be passed into law within two years, helping the country achieve a credit rating of “A.” — Reicelene Joy N. Ignacio
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BIR issues revenue regulations draft for estate tax amnesty













Bureau of Internal Revenue (BIR)
BW FILE PHOTO
THE Bureau of Internal Revenue (BIR) released a revenue regulations (RR) draft covering the amnesty on estate tax Wednesday, outlining the process for offering taxpayers a one-time opportunity to settle estate tax obligations.

Under the draft RR which was presented at a consultation at the BIR headquarters in Quezon City, a 6% estate tax amnesty rate will apply to each decedent’s total net taxable estate at the time of death without penalty at every stage of transfer of property, duly conforming to the rules of succession under the Civil Code of the Philippines on the transfer of properties.

A Filipino citizen’s gross estate includes all property, real and personal, tangible and intangible. For resident aliens and non-resident aliens, the gross estate includes only real and personal property in the Philippines.

The gross estate, as defined, “consists of all properties and interests in properties of the decedent at the time of his death as well as properties he transferred during his lifetime (only in form), but in substance, ownership of the same, were only transferred at the time of his death.”

The net estate, meanwhile, is the “gross estate less all allowable deductions as provided in the National Internal Revenue Code (NIRC) of 1997, as amended, or the applicable estate tax law prevailing at the time of death of the decedent.”

The gross estate, in general, is to be valued on the basis of fair market value at the time of death of the decedent, BIR said, noting that if it is a real property, the fair market value is to be the higher of the zonal value as determined by the Commissioner and the fair market value as shown in the schedule of values fixed by the provincial and city assessors.


In case that the asset is listed and traded in the stock exchange, its fair market value shall be the value at the time of death or the closing rate nearest to the date of death, while for non-listed shares, the fair market value is to be the book value for common shares and par value for preferred shares as shown in the audited financial statement of the issuing corporation covering the period closest to the decedent’s date of death.

Foreign currency held in banks will be valued at the peso exchange rate at the date of death, it said.

According to the draft, in case the legal heirs, executor or administrator of the estate have newly discovered property undeclared in the previous filed return, he or she can file an estate tax amnesty return or an amended estate tax amnesty return, whichever is applicable, and pay the amnesty tax without penalty based on the net taxable value of the net undeclared estate within two years from the effectivity of the RR.

Net undeclared estate is “the difference between the total net estate valued at the time of death of the decedent and the net estate previously declared with the BIR, if any.” — Reicelene Joy N. Ignacio

Proposed RR on implementing the provisions of
Estate Tax Amnesty under Title II of the Tax Amnesty Act.

 Proposed RR/Annex A/Guidelines/Annex B/Annex C
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Guidelines in the Filing of Income Tax Returns for TY 2018 and Payment of Income Tax.

Guidelines in the Filing of Income Tax Returns for TY 2018 and Payment of        Income Tax.  

RMC/

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Tax amnesty set as BIR issues rules

[ bworldonline.com ]


BIR taxpayers
The Bureau of Internal Revenue published Revenue Regulations (RR) No. 4-2019 on Tuesday which lays down the process to avail of tax amnesty for delinquent accounts up to year 2017. -- BW FILE PHOTO
By Melissa Luz T. Lopez Senior Reporter

FILIPINOS with overdue tax payments may start availing of tax amnesty later this month, following the release of the official guidelines by the Bureau of Internal Revenue (BIR).

The country’s top tax-collecting body published Revenue Regulations (RR) No. 4-2019 on Tuesday which lays down the process to avail of tax amnesty for delinquent accounts up to year 2017.

Applications for tax amnesty will be available starting April 24, or 15 days after yesterday’s publication date.

Delinquent taxpayers have one year to file their request for amnesty, which will cover accounts seeking compromise settlements as they question the validity of the assessed taxes to be paid, or due to their “financial incapacity” to settle the entire amount.

The rules also cover employers’ delinquent withholding taxes and unpaid estate tax liabilities.


The RR defines delinquent accounts as those left unpaid despite being given final assessment notices or formal letters of demand by the BIR, as well as those which do not have appeals filed with the BIR commissioner or the Court of Tax Appeals over pending or disputed tax cases.

The amnesty will also cover those with tax evasion complaints or charges before the Department of Justice, prosecutor’s office or the courts.

The law sets varying amnesty rates for delinquencies charged to the basic tax.

For delinquent accounts and assessments that have been deemed final and executory, taxpayers will need to pay the equivalent of 40% of the basic tax assessed.

Those with tax cases that have been decided by the courts will have to settle 50% of the basic assessment, while those with pending criminal cases can choose to settle by paying 60% of the assessment.

Unremitted withholding taxes — personal income tax deducted from employee salaries — still have to be paid in full.

To apply for amnesty, a taxpayer needs to submit a Tax Amnesty Return (TAR) form that has been accomplished under oath, an acceptance payment form stating the amount which he paid to settle their dues, a certificate of tax delinquencies or liabilities issued by the BIR office with jurisdiction in his location and a copy of previous assessments issued by the bureau.

Non-large taxpayers must file their forms with their respective revenue district offices, while Large Taxpayers will have to submit these documents to the Large Taxpayers Division Office where they are registered.

Upon submission, the BIR has 15 calendar days to issue an Authority to Cancel Assessment, which will mean that the tax amnesty application has been accepted.

“Insofar as the tax delinquencies covered by the TAR is concerned, any notice, attachment and/or warrant of garnishment issued against the taxpayer by the concerned BIR office shall be set aside pursuant to the lifting of the said notices and warrants issued by the concerned BIR office,” the rules read, adding that availing of tax amnesty “does not imply any admission of criminal, civil or administrative liability” of the taxpayer.

This RR is treated as the implementing rules for Republic Act No. 11213, or the Tax Amnesty Act signed by President Rodrigo R. Duterte in February.

With the measure, the government hopes to raise P21.26 billion as Filipinos avail of the amnesty, which would allow them to pay their back taxes without being charged with compounding penalties for delayed settlement.

Please click below for RR 4-2019
 
RR No. 4-2019 Implements the rules and regulations of the Tax Amnesty Act, providing for the guidelines on the processing of Tax Amnesty Application on Tax Delinquencies
(Published in Malaya Business Insight on April 9, 2019)
Digest | Full Text | Annex A | Annex B | Annex C
April 8, 2019

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Publishes the full text of PRC Resolution No. 2019-1146, amending relevant provisions of Resolution No. 1032 s. 2017 (Implementing Rules and Regulations of the Continuing Professional Development Act of 2016)








RMC No. 40-2019 Publishes the full text of PRC Resolution No. 2019-1146, amending relevant provisions of Resolution No. 1032 s. 2017 (Implementing Rules and Regulations of the Continuing Professional Development Act of 2016)
Digest | Full Text | PRC Resolution 2019-1146
April 1, 2019


Prescribes the use of the Electronic Certificate Authorizing Registration System relative to transactions involving registration and transfer of real and personal properties









R No. 3-2019 Prescribes the use of the Electronic Certificate Authorizing Registration System relative to transactions involving registration and transfer of real and personal properties pursuant to Section 5(B) of the NIRC of 1997, as amended, and in relation to Sections 58(E), 95 and 97 of the same Code
(Published in Manila Bulletin on April 1, 2019)
Digest | Full Text | Annex A | Annex B
March 28, 2019


Advisories for all Authorized Agent Banks to accept certain tax return/payments




Advisories for all Authorized Agent Banks to accept certain tax return/payments of internal revenue taxes in case of unavailability of the eFPS.  





RMC No. 37-2019 Circularizes the availability of the Enhanced BIR Form No. 1701 [Annual Income Tax Return for Individuals (including Mixed Income Earner), Estates and Trusts] January 2018 (ENCS)

RMC No. 37-2019     Circularizes the availability of the Enhanced BIR Form No. 1701 [Annual Income Tax Return for Individuals (including Mixed Income Earner), Estates and Trusts] January 2018 (ENCS)





 PLEASE CLICK BELOW 

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Revenue bureau releases draft tax amnesty rules

[ bworldonline.com ]
 

tax BIR

THE Bureau of Internal Revenue (BIR) has published draft rules on availing of the tax amnesty for delinquencies in specific cases, which will give eligible taxpayers one year to settle all outstanding payments and avoid tax evasion cases.

The state’s biggest tax collection agency posted a draft revenue regulation (RR) on its Web site this week.

This is treated as one set of implementing rules for Republic Act No. 11213, or the Tax Amnesty Act signed by President Rodrigo R. Duterte last month.

With the measure, the government hopes to raise P21.26 billion as Filipinos avail of the amnesty, which would allow them to pay back taxes without being charged in court and without compounding penalties for delayed settlement.

This will account for bulk of the P27.541-billion revenue to be drawn from the “truncated” tax amnesty law, together with the provision for estate tax amnesty.

“All persons, whether natural or juridical, with internal revenue tax liabilities covering taxable year 2017 and prior years, may avail of Tax Amnesty on Delinquencies within one year from the effectivity of these regulations,” the draft regulation read.

The RR defines a delinquent account as involving unpaid taxes of taxpayers who have been given final assessment notices or formal letters of demand from the BIR, as well as those who have applied for compromise settlement with the bureau but have failed to settle due to doubts on the assessment or their “financial incapacity.”

The amnesty will also cover those with pending tax evasion charges before the Department of Justice, prosecutor’s office or the courts.

The new law sets varying amnesty rates for delinquencies charged on the basic tax.

Unremitted withholding taxes will still have to be settled in full.

For delinquent accounts and assessments which have been deemed final and executory, taxpayers will need to pay the equivalent of 40% of the basic tax assessed. Those with tax cases that have been deemed final and executory by courts will have to settle 50% of the basic assessment, while those with pending criminal cases can choose to settle beforehand and pay 60% of the tax assessment.

Anyone looking to avail of the amnesty will have to file an application with BIR offices by submitting a tax amnesty return, an acceptance payment form and a certificate of tax delinquency issued by the bureau.

Non-large taxpayers must file their forms before their respective revenue district offices, while large taxpayers will have to submit these to the Large Taxpayers Division Office where they are registered.

Upon receipt of such forms, the BIR has 15 calendar days to issue an authority to cancel assessment, which will then mean that the tax amnesty application has been accepted.

“The tax delinquency of those who availed of the tax amnesty under these regulations, upon full compliance with all the conditions set forth hereof, shall be considered settled, and the criminal case in connection therewith and its corresponding civil or administrative case, if applicable, is terminated,” the proposed RR reads.

The Finance department has said that the implementing rules will be published between March and April, in keeping with the 90-day requirement set by law. — Melissa Luz T. Lopez

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TAX Amnesty Law : Republic Act 11213













 Please click link for (pdf)
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Finance dep’t still open to general tax amnesty

[ bworldonline.com ]
 
taxpayers
By Melissa Luz T. Lopez Senior Reporter

THE DEPARTMENT of Finance (DoF) said it will push for a new measure that will provide a general tax amnesty, after such a provision was vetoed by President Rodrigo R. Duterte when he signed into law last Friday the reprieve for estate tax liabilities and national tax delinquencies in specific circumstances.

The tax amnesty program imposes an amnesty charge equivalent to a portion of the taxpayers’ outstanding unpaid taxes in exchange for immunity from civil, criminal and administrative penalties.

“The President was constrained to veto the portion of the law covering the general amnesty because of the lack of provisions breaking the walls of bank secrecy, setting the framework for complying with international standards on exchange of information, and other safeguards against those who abuse by declaring untruthful assets or net worth,” Finance Secretary Carlos G. Dominguez III told reporters via Viber message.

“However, the estate tax amnesty and the amnesty on delinquency taxes remain.”

The DoF expected its original tax amnesty proposal to raise P41 billion in additional revenue, but latest estimates show that expected revenues will just be at P6.8 billion after the veto — barely a fifth of program.

“We will work with Congress to pass a general tax amnesty with the proper safeguards, such a lifting of bank secrecy provisions and the AEoI (automatic exchange of information with foreign tax authorities), if not in this Congress, then in the next,” Mr. Dominguez said.
“Implementation may still be within the year so revenues will come in.”

He stressed that the state can actually rake in as much as P76.6 billion over the next five years if authorities were authorized to obtain more data from taxpayers.

On the other hand, Mr. Dominguez said the department estimated foregone revenues of about P53 billion “if the general tax amnesty was not vetoed.”

Congress is on a Feb. 9-May 19 break for the May 13 mid-term elections that will see half of Senate seats and the entire House of Representatives up for grabs.

Lawmakers work again on May 20-June 7, which is the last window for legislation before the 17th Congress ends.

Nueva Ecija Rep. Estrellita B. Suansing (1st district), chairperson of the House of Representatives Committee on Ways and Means, said it can finish work on that measure within that time. “Three weeks to go before end of 17th Congress — kaya namin up to third reading (We can approve it on third reading within that time),” Ms. Suansing said in a mobile phone message when sought for comment.

Her Senate counterpart, however, wasn’t as optimistic. “I doubt there is enough time this Congress. Maybe in the 18th Congress,” committee chair Senator Juan Edgardo M. Angara said separately.

Another provision removed from the final version of the law was the one-time settlement of several estates, with Malacañang saying the flat six percent rate based on estate value at the time of the owner’s death “is… quite generous.”

Also vetoed was a provision that presumes correctness of declarations on estate tax amnesty returns.

“When one avails of the amnesty, the government should be able to verify his declarations,” Mr. Dominguez explained. — with Charmaine A. Tadalan and Camille A. Aguinaldo
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President partially vetoes tax amnesty bill

 
/ 11:46 PM February 15, 2019
 
MANILA, Philippines – President Rodrigo Duterte has issued a partial veto on the Tax Amnesty Act, a measure which seeks to provide amnesty for delinquent taxpayers.

Executive Secretary Salvador Medialdea confirmed the development on Friday.

Malacañang, however, is yet to explain which provisions of the bill were vetoed by Duterte.

The President has a line-item veto power for any budget, tax and tariff bill passed by Congress.

The tax amnesty bill would provide for a one-time opportunity to settle tax obligations, including estate taxes, general taxes and delinquent accounts, for those who failed to pay these for the year 2017 and earlier.

Those who avail themselves of the amnesty program would be immune from the payment of all taxes and the filing of civil, criminal and administrative cases and penalties.

Sen. Sonny Angara, the measure’s main sponsor in the Senate, described it as a “win-win” for both the taxpayers and the administration.

The government is expected to generate some P41 billion from the program, with the amount going to infrastructure projects and to the augmentation of appropriations to help those affected by the Tax Reform for Acceleration and Inclusion (Train) law, said Angara. / gsg
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RMC No. 19-2019 : Prescribes various revised BIR Forms (Version January 2018)

RMC No. 19-2019 Prescribes various revised BIR Forms (Version January 2018)
Digest| Full Text | Annex A | Annex B| Annex C| Annex D
January 30, 2019

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BIR : Prescribes the new BIR Form No. 1701A [ Annual Income Tax Return for Individuals from Business/Profession ]


RMC No. 17-2019 Prescribes the new BIR Form No. 1701A - Annual Income Tax Return for Individuals Earning Purely from Business/Profession (those under the graduated Income Tax rates with Optional Standard Deduction as mode of deduction or those who opted to avail of the 8% flat Income Tax rate) January 2018 version
Digest | Full Text | BIR Form 1701A
January 24, 2019

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BIR ADVISORY : TIN Assistance

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KNOWING YOUR BIR REGULATIONS AND ISSUANCES

Revenue Regulations (RRs)
are issuances signed by the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, that specify, prescribe or define rules and regulations for the effective enforcement of the provisions of the National Internal Revenue Code (NIRC) and related statutes

Revenue Memorandum Orders (RMOs) are issuances that provide directives or instructions; prescribe guidelines; and outline processes, operations, activities, workflows, methods and procedures necessary in the implementation of stated policies, goals, objectives, plans and programs of the Bureau in all areas of operations, except auditing.

Revenue Memorandum Rulings (RMRs) are rulings, opinions and interpretations of the Commissioner of Internal Revenue with respect to the provisions of the Tax Code and other tax laws, as applied to a specific set of facts, with or without established precedents, and which the Commissioner may issue from time to time for the purpose of providing taxpayers guidance on the tax consequences in specific situations. BIR Rulings, therefore, cannot contravene duly issued RMRs; otherwise, the Rulings are null and void ab initio

Revenue Memorandum Circular (RMCs) are issuances that publish pertinent and applicable portions, as well as amplifications, of laws, rules, regulations and precedents issued by the BIR and other agencies/offices.

Revenue Bulletins (RB) refer to periodic issuances, notices and official announcements of the Commissioner of Internal Revenue that consolidate the Bureau of Internal Revenue's position on certain specific issues of law or administration in relation to the provisions of the Tax Code, relevant tax laws and other issuances for the guidance of the public.

BIR Rulings are official position of the Bureau to queries raised by taxpayers and other stakeholders relative to clarification and interpretation of tax laws.
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