Hi again! Good day to all of you. Hope everyone is in the best of health and everything is fine❤️.
This is the 4th part of the Extra Judicial Settlement of Estate that I am currently working on. Today, I would share the details when I presented the documents to the BIR ONETT team for evaluation and tax computation.
Word/point to know-
Decedent- the one who passed away and giving on the pamana via the Extra Judicial Settlement of Estate.
Estate Tax Amnesty is extended for another 2 years or up to June 14, 2023, per information from BIR. Current news also stated that Senate has approved Senate Bill No. 2208 which sought to amend RA No. 11213 or the Tax Amnesty Act by extending the application period to June 14, 2023.
Update as of June 30, 2021: President Duterte signed Republic Act No. 11569, extending the June 14 deadline for applications of estate tax amnesty until June 14, 2023.
Documents review by ONETT-
Transacting with BIR may require a lot of time and long lines, make sure to come early to be first on the line. It would be good to bring with you a bottled mineral water to keep you hydrated.
Certified True Copy of Title:
The BIR examiner made a detailed check on all the documents I presented, specifically the certified true copy of title. The decedent's name must be on the title as owner or one of the owners. The sharing arrangement must be stipulated clearly on the Extra Judicial Settlement of Estate or in any other document submitted, like Deed of Partition or Agreement stating how the total land area per title will be divided among the heirs.
For the heirs, birth certificate or marriage contract must be presented in order to establish the existing relationship with the decedent.
Certified True Copy of Tax Declaration:
Decedent's ownership as per land title must tie up with the tax declaration. Land area on the tax declaration must also be the same with what is on the title.
For estate tax return, the certified true copy of tax declaration must be as of the time of death of the decedent or as of the nearest revision per assessor's office records. This is so, because computation of the estate tax will be based on the value of the property as of the time of death of the decedent, market or the zonal value whichever is higher.
Certificate of Residency/Certificate of Landholding:
If we have the certificate of residency for the decedent, the estate may be entitled to deduction for the family home. However, per BIR examiner, the family home must be a part of the gross estate of the decedent. He must owned the property and included in his Certificate of Landholding to avail of the family home deduction.
Estate tax payable
The points above were the basis of the BIR examiner's computation of the estate tax. The decedent's passing was in the later part of 1980's, already a very long time ago. We were no longer able to keep receipts and other requirements to avail of any deduction. We just want to settle everything and avail of the estate tax amnesty offered by the government.
Based on BIR examiner's review, the estate was computed straight 6% of the market value of the property at the time of death. There were no penalties and interest charges.
Two BIR forms needed for the process:
- BIR Form 0621-EA (Acceptance Payment Form Estate Tax Amnesty)
- BIR Form 2118-EA (Estate Tax Amnesty Return)
Links to the BIR Forms:
However, use BIR form 1801 for taxable years which are not included in the tax amnesty, that is for years 2018 onwards.
BIR Form 1904 - TIN of estate and heirs
Another requirement is to secure TIN of the estate as well as of the heirs. For the heirs who have already the TIN, they will just be verified. For the process of getting and verifying of TIN, fill up and submit BIR Form 1904 for one time transaction. The form should be filled up in duplicate and valid government IDs, or birth certificates, or marriage contracts should be presented.
Link for your easy reference:
Payment of the Estate Tax Payable
After the BIR examiner computed the estate tax payable, it was reviewed and approved by the Revenue District Officer. He signed the BIR form 0621-EA which I filled up earlier together with BIR Form 2118-EA. These are the forms to be used when filing estate tax return which are under the estate tax amnesty program.
At this time of the process, I can already pay the estate tax. For the payment, I chose to pay online because my place of residence is far from the authorized banks of the BIR branch where I filed the estate tax return. This branch has jurisdiction over the estate I am working on.
I made the online payment via LandBank - LinkBiz Portal Payment. Providing the website below for your reference. Please copy and paste to a browser to be able to enter the site.
https://www.landbank.com/e-banking/other-e-banking-services/linkbizportal
I will submit the Extra Judicial Settlement of Estate together with all the attachments next week per advise of BIR collection department to give time for my online payment to be visible on their system. Once all documents will be submitted, the processing of the Certificate of Registration (CAR) will start.
Hopefully, it will not take longer for the CAR to be released to us so that we can move to the next government agency involved in the process, the Register of Deeds.
This is all for now, will update you again once the Certificate of Registration (CAR) will be released and we can move on to the Register of Deeds' part of the process.
Will keep you updated. Keep safe everyone! ❤️
Updates:
6/9/21: I have submitted all the documents to BIR. There were 2 sets submitted, one set was the original documents and the other was the xeroxed copies of all the documents. I was given a claim slip and was advised to call after 2 weeks.
Hoping the CAR (certificate authorizing registration) will be released after two weeks.
6/23/21: 2 weeks had passed, called BIR few minutes ago, was advised to call back after another two weeks.
7/9/21: called up BIR today to follow up CAR. I was advised that it is for encoding and that I should call again Thursday next week.
7/17/21: called up BIR last Friday, July 15, still CAR is for encoding. The delay is due to system issues, per BIR customer support. That I should follow up again this coming week, Tuesday.
7/23/21: called up BIR few minutes ago, still ejs CAR is for encoding. I was advised to call again tuesday or wednesday next week.
8/25/21: called up BIR 2 days ago, was advised to call again Wednesday, as the ONETT Team is on quarantine.
9/11/21: finally ECAR was released from BIR. Will now proceed to work on the Register of Deeds part of the process. Will keep you posted via another blog detailing the process that I would undertake.
Will keep you posted. Thank you.
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