Oo, kelangan daw ang EJS sa pag-apply ng Estate Tax Amnesty para sa real estate property na naiwan nang namatay na kapamilya.
Ito pa rin ang sinasabi ng mga BIR officers, kahit inilabas na noong April 24, 2025 ni BIR Commissioner Romeo Lumagui, Jr. ang kanyang memo na hindi required ang EJS or iba pang proof of settlement para mag-apply sa Estate Tax Amnesty.
Pumunta ako nong May 20 sa BIR dito sa amin, at EJS daw ang isa sa pinaka-importante na document sa pag-apply ng estate tax amnesty. Hindi raw nila ma-process ang amnesty kung wala ang EJS.
Kahit ano ang paliwanag ko, hindi nila ako pinakinggan. Required daw ang EJS.
Of course, alam na ng karamihan na ang EJS means Extra-Judicial Settlement. Isinasaad sa Deed of Extra-Judicial Settlement ang location at description ng property, ang name, address, civil status, at age ng decedent at mga heirs. Nakalagay din sa Deed kung paano paghahatian ang property. Puedeng equal division, o merong mag-waive ng right in favor of another heir.
Madali namang magpagawa at magpa-notarize ng EJS. Puede nga tayong gumawa ng ating sariling EJS, kasi meron namang mga formats online.
Wala pa kasing panggasto sa mga Taxes
Ang kaso, once na mag-file tayo ng EJS sa BIR, magbabayad na tayo ng Capital Gains Tax (6%) at Documentary Stamp Tax sa BIR. At meron ding deadline yong pagbayad ng transfer tax sa City Hall.
At take note, ang basehan nila ng computation ay hindi yong isusulat nating presyo. Usually ang basehan ay zonal value ng land, kasi usually yon ang highest of the three values na tinitingnan nila. Tinitingnan nila ang market value sa tax declaration, yong isinulat niong presyo at zonal value.
Halimbawa, ang price mo sa 100 sqms property mo ay babaan mo: price is 500k pesos, hindi ito ang basehan nila. Gagamitin nila ang zonal value ng land. Dito sa amin ang zonal value ay 15,000 pesos per sqm. So ang total appraised value ng land is 100 x 15,000 = 1.5M pesos.
Idagdag pa nila yong market value ng Building na nakasulat doon sa tax declaration, ng Building, halimbawa ay 400,000. So ang total value ng Land and Building ay 1.9M pesos.
Ang capital gains tax is 6%. 1.9M x 6% = 114,000 pesos
*Documentary stamp tax is 1.5%. 1.9M x 1.5% = 28,500
**Transfer tax is 0.75% in Metro Manila 500k x 0.75% = 3,750
***Meron pang transfer tax para sa EJS 450k x 0.75% = 3,375
*Ang actual computation ng Documentary Stamp Tax ay 15 pesos for every 1,000 pesos or a fraction thereof. Significant ito kapag merong barya yong presyo, halimbawa 1,900,850 pesos.
**Dito sa city namin, ang basis ng computation ng transfer tax is the higher of 2 values: sale price or market value na nasa tax declaration.
***Ang basis ng transfer tax ng EJS ay market value na nasa tax declaration.
Hindi ko na isinama yong gagastusin sa change of title sa Register of Deeds, kasi puedeng ipagpaliban ang registration ng change of name sa title sa Register of Deeds. Sa Register of Deeds, hindi nila tinitingnan ang date of EJS. Yong ECAR naman, puedeng mag-apply ng another copy from BIR kung lumipas na ang one year bago mag-change of name sa title.
Kung papayagan tayo na Estate Tax lang sana:
Magaan sana nating bayaran ang estate tax na usually ay 5,000 pesos lang, kasi karamihan naman sa atin ay less than 5M ang BIR-appraised value ng bahay at lupa na naiwan. Ang standard deduction sa gross estate for taxation ay 5M. Kung zero o negative ang gross estate, ang estate tax ay 5,000 pesos lang.
Kung more than 5M up to 10M naman ang BIR-appraised value ng bahay, puedeng mag-submit ng certification from barangay na the property was the family home of the decedent. Ang family home deduction ay 10M, for decedents who died after Dec 31, 2017.
BIR MEMO Stating na Hindi Required ang EJS sa Estate Tax Amnesty Application
Department of Finance
Bureau of Internal Revenue
Date: 24 Apr 2025
Revenue Memorandum Circular No. 040 - 2025
SUBJECT: Clarification on the Submission of Proof of Settlement of Estate Pursuant to Revenue Regulations (RR) No. 10-2023
TO: All Internal Revenue Officers, Employees and Others Concerned
This Circular is hereby issued to clarify the provisions of Section 2 of RR No. 10-2023 regarding the submission of proof of settlement of the estate, whether judicial or extra-judicial, for purposes of availing of estate tax amnesty.
The documents required for the availment of the estate tax amnesty are the Estate Tax Amnesty Return (ETAR) -BIR Form No. 2118-EA, the Acceptance Payment Form - BIR Form No. 0621-EA, and the complete documentary requirements as prescribed under RR No. 10-2023.
The proof of settlement of the estate (e.g. Extra Judicial Settlement, Court Order), whether judicial or extra-judicial, is not required to accompany the ETAR at the time of filing and payment of taxes if it is not yet available. Accordingly, the non-submission of such proof on or before June 14, 2025 shall not invalidate the application for estate tax amnesty.
However, this proof of settlement shall be required during the processing and issuance of Electronic Certificate Authorizing Registration.
All internal revenue officials, employees and others concerned are hereby enjoined to give this circular as wide a publicity as possible.
(Signed By)
ROMEO D. LUMAGUI, JR.
Commissioner of Internal Revenue
Bureau of Internal Revenue
Records Management Division April 24, 2025
DOCUMENTS REQUIRED by BIR for Estate Tax Amnesty Application
Nagbigay ang BIR ng list of requirements para makakuha ng:
1. Certificate of Availment (CA) of Estate Tax Amnesty at
2. Electronic Certificate Authorizing Registration (eCAR)
Requirements:
1. Certified true copy of Death Certificate
2. TIN of decedent (yong namatay) and heir(s)
3. Estate Tax Amnesty Return (BIR Form No. 2118-EA)
4. Estate Tax Acceptance Payment Form (BIR Form No. 0621-EA)
5. Deed of Extra-Judicial Settlement (EJS) of the estate of the decedent
or Affidavit of Self-Adjudication or Court Judgment or Last Will and Testament
6. Certification of the Barangay Captain for the last residence of the decedent and claimed family home
7. At least one valid government ID of the heirs (one ID each), or transferees, or beneficiaries, or authorized representative, or estate administrator/executor
8. Certified true copy of Title (Transfer or Original or Condominium Certificate of Title)
9. Certified true copy of Tax Declaration, issued at the time of death of the decedent, or the succeeding available tax declaration issued nearest to the time of death of the decedent
10. Certificate of No Improvement, if there has been no improvement, from the Assessor's Office, at the time of death of the decedent
11. Loan contract or notarized promissory note (claim against sa estate ng decedent)
12. Kung merong previously paid na estate tax, but filing not completed (proof, affidavit or receipt of payment)
13. Kung naibigay ang property for public use, proof of transfer for public use
13. Special Power of Attorney, notarized (for authorized representative)
14. Sworn Statement (for executor)
15. Certification from the Philippine consulate (if document is signed abroad)
16. Location plan or vicinity map (if zonal value cannot be determined from documents submitted)
***Bring Original Copy and 2 photocopies of each document