ððĶð§ðð§ð ð§ððŦ ðððĒððð§ððĒðĄ ðĻðĢððð§ð: ððĶ ð§ðð ðē% ððĶð§ðð§ð ð§ððŦ ðððĒðĻð§ ð§ðĒ ðð ðĨðð ðĒðĐðð? ð ⚖️
Many Filipino families are asking:
“Will estate tax be abolished already?”
This is an important issue because many inherited properties in the Philippines remain unsettled for years — sometimes even decades — because heirs cannot immediately pay estate tax, penalties, documentation expenses, and transfer costs.
At present, there are legislative proposals in Congress seeking to abolish the estate tax, including proposals such as House Bill No. 6553 and House Bill No. 6535, which aim to repeal the current 6% flat estate tax under the National Internal Revenue Code.
However, it is very important to clarify:
ððððŪððē ððŪð
ðŪðŊðžðđðķððķðžðŧ ðķð ðŧðžð ððēð ðŪ ðđðŪð.
It is still a pending legislative proposal and must still go through the proper process in Congress before it can become effective.
ðŠððð§ ððĶ ð§ðð ðððð ðððððĄð ððĶð§ðð§ð ð§ððŦ ðððĒððð§ððĒðĄ?
The main idea is to remove the immediate tax burden on heirs when a family member dies.
Instead of taxing the estate upon death, the proposal seeks to shift the tax burden to the time when the inherited property is eventually sold.
In simple terms:
✅ No immediate estate tax upon death
✅ Easier transfer of inherited property to heirs
✅ Less pressure on grieving families
✅ More idle properties may be unlocked and returned to productive use
✅ Taxes may instead be collected when the property is sold through the usual transaction taxes
This is why some lawmakers describe the proposal as a shift from a “tax on death” to a “tax on transaction.”
ðŠððŽ ððĨð ðððŠð ððððĨðĶ ðĢðĻðĶðððĄð ððĒðĨ ð§ðððĶ?
Supporters of estate tax abolition point to several practical reasons:
1️⃣ ð ðŪðŧð ðĩðēðķðŋð ð°ðŪðŧðŧðžð ðŪðģðģðžðŋðą ððĩðē ðķðšðšðēðąðķðŪððē ð°ðŪððĩ ðžðð
Even if the family owns land, they may not have enough cash to pay estate tax and transfer expenses.
2️⃣ ð ðŪðŧð ð―ðŋðžð―ðēðŋððķðēð ðŋðēðšðŪðķðŧ ðķðąðđðē
Because titles are not transferred, many properties cannot be sold, developed, mortgaged, donated, or properly used.
3️⃣ ððŪðšðķðđðķðēð ðŪðŋðē ðžðģððēðŧ ð―ðēðŧðŪðđðķððēðą ðģðžðŋ ðąðēðđðŪð
When estate tax is not settled on time, penalties, surcharge, and interest may accumulate.
4️⃣ ðð ðšðŪð ðĩðēðđð― ððŧðđðžð°ðļ ðēð°ðžðŧðžðšðķð° ððŪðđððē
If heirs can transfer inherited assets more easily, more properties may return to the market, support development, and generate future tax collections through actual transactions.
ðŠððð§ ðððĒðĻð§ ð§ðð ððĶð§ðð§ð ð§ððŦ ðð ðĄððĶð§ðŽ ððŦð§ððĄðĶððĒðĄ?
While abolition is still being discussed, there is also a separate proposal to extend the Estate Tax Amnesty.
House Bill No. 6614 seeks to extend the estate tax amnesty period until December 31, 2028 and expand the coverage to estates of decedents who died on or before December 31, 2024.
This bill has already passed the House of Representatives on third and final reading and has been filed/transmitted in the Senate.
But again, based on available public information, heirs should still verify whether the extension has already become law before relying on it.
ðŠððð§ ðĶððĒðĻðð ððððĨðĶ ððĒ ðĄðĒðŠ?
Do not wait blindly.
If your family has an inherited property, it is better to start checking the documents now:
✅ Certified true copy of title
✅ Tax declaration
✅ Death certificate of the registered owner
✅ Marriage certificate, if applicable
✅ Birth certificates of heirs
✅ Extrajudicial settlement or settlement documents
✅ Real property tax status
✅ BIR estate tax requirements
✅ Registry of Deeds transfer requirements
Even if the law changes later, families who already organized their documents will be in a better position to act.
ðð ðĢðĒðĨð§ððĄð§ ðĨððð ððĶð§ðð§ð ðĨðð ððĄðððĨ
For buyers, be careful when buying inherited property.
Before paying reservation money, earnest money, or full payment, check if:
✅ The registered owner is still alive
✅ If deceased, the estate has been settled
✅ Estate tax or amnesty requirements have been complied with
✅ The heirs have authority to sell
✅ There is an Extrajudicial Settlement or court settlement, if needed
✅ The title can actually be transferred
A good property deal can become a legal and transfer problem if estate issues are ignored.
ððĒð§ð§ðĒð ðððĄð
Estate tax abolition is a promising proposal, but it is not yet final law.
Estate tax amnesty extension is also moving forward, but families should verify the latest status with the BIR, Congress, Senate, or their legal/tax adviser before making decisions.
For now, the safest move is this:
ðĒðŋðīðŪðŧðķððē ððžððŋ ðąðžð°ððšðēðŧðð.
ððŧðžð ððĩðē ððēðŪðŋ ðžðģ ðąðēðŪððĩ.
ððĩðēð°ðļ ððĩðē ððķððđðē.
ððžðŧðððđð ððĩðē ð―ðŋðžð―ðēðŋ ð―ðŋðžðģðēðððķðžðŧðŪðđð.
ððž ðŧðžð ððŪðķð ððŧððķðđ ððĩðē ðŊðððēðŋ ðķð ðŪðđðŋðēðŪðąð ððĩðēðŋðē.
ð ðððð, ððĒðððĒðŠ & ðĶðððĨð for regular real estate tips, property due diligence reminders, buyer protection updates, and practical guidance for property owners, buyers, sellers, heirs, and investors.
For guidance and Q&A:
Samuel O. Lao
Licensed Real Estate Broker
PRC REBL No. 1368
Samuel O. Lao and Associates
Mobile/Viber/WhatsApp: 0917 323 6123
Sources reviewed:
Philippine News Agency report on House Bill No. 6553; House Bill No. 6535 filed in the House of Representatives; Department of Finance statement supporting House Bill No. 6614; ABS-CBN, BusinessWorld, and Inquirer reports on House approval of the estate tax amnesty extension bill; Senate legislative record for House Bill No. 6614.
Disclaimer:
This post is for general information and educational purposes only. It is not legal, tax, accounting, or financial advice. Estate tax rules, amnesty deadlines, documentary requirements, and transfer procedures may change depending on new laws, BIR regulations, and government issuances. Please verify with the BIR, Registry of Deeds, LGU Assessor/Treasurer, lawyer, accountant, or qualified tax professional before making any legal, tax, or real estate decision.
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