FLASH NEWS!!! AMNESTY ON THE PAYMENT OF ESTATE TAXES FINALLY APPROVED BY PHILIPPINE HOUSE OF REPRESENTATIVES
Two separate proposed legislations were approved recently by the House of Representatives which seek to grant an amnesty on Estate Taxes unpaid until 2016 (HB 4814) and to peg the rate of estate taxes to 6% from the present graduated rate of 5% to 20 % depending on the value of the estate (HB 4815).
This is welcome news for those who have inheritance in the Philippines who have not registered land for decades because they could not afford the taxes necessary to complete the registration process with the Register of Deeds. The impact is especially significant for heirs of agricultural lands who have seen their inheritance increase in value through the years but with the respective titles tied up in the names of deceased persons going back several generations. Real estate companies must also be rejoicing at the news as development has been moving into the countryside in recent years.
As part of the tax reform program of the Philippine government, the proposed laws once passed will facilitate the process of inheriting in the Philippines. Estate, Probate, and Inheritance attorneys in the Philippines can now ease the minds of their clients with respect to the payment of compounded penalties and surcharges on unpaid estate tax bills.
The proposed bills still have to be reconciled with similar bills in the Philippine Senate which has committed to expediting the passage of the laws.