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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.  





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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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