REVENUE MEMORANDUM CIRCULAR (RMC) NO. 033-2026
This Circular is issued to clarify the filing and payment of estate tax under the estate tax amnesty.
Q1. When is the deadline for the submission of proof of estate settlement (e.g. Extra Judicial Settlement, copy of Court Order) for those who availed of the estate tax amnesty?
A1. There is no deadline for submitting proof of estate settlement, and failure to submit it by June 16, 2025 does not invalidate the estate tax amnesty application. However, proof is required to process and issue the eCAR, which is necessary to transfer the estate’s assets.
Q2. What is the basis in computing the estate tax due for property/ies not declared/included in the previously filed estate tax amnesty return?
A2. The laws and regulations applicable at the time of death of the decedent shall be followed. The applicable tax rate shall be applied to compute the estate tax due only for the undeclared property/ies of the estate.
Please see below sample illustration.
Example: Mr. X, single, died on June 15, 2015. No Regular Estate Tax Return was filed nor any Estate Tax due paid within the period to file and pay the Regular Estate Tax. The heirs then availed of the estate tax amnesty on June 16, 2025 on properties valued at PHP 2,500,000.00 and paid Estate Tax Amnesty due of PHP 90,000.00. After a few weeks, the heirs discovered that an additional property with a value of PHP 218,960.00 was not included in the gross estate declared in the Estate Tax Amnesty Return. The heirs then filed Regular Estate Tax Return and paid the Regular Estate Tax due on the additional property on July 30, 2025.
COMPUTATION DETAILS:
| Description | Regular Estate Tax | Estate Tax Amnesty |
| Taxable Net Estate (originally filed) | N/A | N/A |
| Additional Property subjected to Estate Tax Amnesty | N/A | PHP 2,500,000.00 |
| Additional Property subjected to Estate Tax | PHP 218,960.00 | N/A |
| Less: Deductions (Standard Deduction) | 0.00 | 1,000,000.00 |
| Taxable Net Estate | PHP 218,960.00 | PHP 1,500,000.00 |
| Regular Estate Tax Due 218,960.00 – 200,000.00 = 18,960.00 18,960.00*5% | PHP 948.00 | N/A |
| Estate Tax Amnesty Due 1,500,000.00*6% | N/A | PHP 90,000.00 |
| Less: Estate Tax Paid | 0.00 | 90,000.00 |
| Deficiency Estate Tax Due to Additional property subject to Regular Estate Tax | PHP 948.00 | N/A |
| Add: Increments | ||
| 25% Surcharge | 237.00 | N/A |
| 20% (Dec 16, 2015 – Dec 31, 2017) 12% (Jan 1, 2018 – Jul 30, 2025) | 388.04 862.70 | N/A |
| Compromise | 1,000.00 | N/A |
| Estate Tax Payable | PHP 3,435.74 | N/A |
Effective January 1, 1998 up to December 31, 2017 (RA No. 8424)Top of Form
If the Net Estate is:
| Over | But not Over | The Tax Shall be | Plus | Of The Excess Over |
| 200,000.00 | Exempt | |||
| 200,000.00 | 500,000.00 | 0 | 5% | 200,000.00 |
| 500,000.00 | 2,000,000.00 | 15,000.00 | 8% | 500,000.00 |
| 2,000,000.00 | 5,000,000.00 | 135,000.00 | 11% | 2,000,000.00 |
| 5,000,000.00 | 10,000,000.00 | 465,000.00 | 15% | 5,000,000.00 |
| 10,000,000.00 | 1,215,000.00 | 20% | 10,000,000.00 |
Before the implementation of the TRAIN Law under RA No. 10963, estate taxes were imposed using a graduated tax table under the NIRC. The applicable rates were:
| Net Estate | Estate Tax Rate |
| 200,000 and below | Exempt |
| Over 200,000 to 500,000 | 5% of excess over 200,000 |
| Over 500,000 to 2,000,000 | 15,000 + 8% of excess over 500,000 |
| Over 2,000,000 to 5,000,000 | 135,000 + 11% of excess over 2,000,000 |
| Over 5,000,000 to 10,000,000 | 465,000 + 15% of excess over 5,000,000 |
| Over 10,000,000 | 1,215,000 + 20% of excess over 10,000,000 |
For purposes of this illustration, the pre-TRAIN graduated estate tax rates were applied since the decedent died on June 15, 2015. Accordingly, the applicable tax regime is the NIRC (as amended by RA No. 8424), which was in effect at the time of death.
In addition, the issuance confirms that installment payment of estate tax amnesty is allowed for up to two years from the statutory due date without the imposition of civil penalties and interest, provided that the first installment was paid on time and the arrangement is approved by the Revenue District Office (RDO). Installment amounts are not required to be equal as long as the total liability is fully settled within the allowed period.
However, the Circular also stresses that failure to pay any installment on its due date results in the forfeiture of the estate tax amnesty privilege. Once forfeited, the estate becomes subject to regular estate tax liabilities, including applicable surcharge, interest, and compromise penalties, while previous amnesty payments shall only be treated as partial payments against the total tax due.
Please see below sample illustration:
- Example: Mr. X, single, died on June 15, 2015. Regular Estate Tax Return was filed with basic Estate Tax due of PHP 518,835.00 paid within the period to file and pay the Regular Estate Tax. The heirs then availed of the estate tax amnesty on June 16, 2025 on properties valued at PHP 2,500,000.00 and with Estate Tax Amnesty due of PHP 150,000.00. The heirs applied for 3 equal installments due every 6 months (June 16, 2025, December 16, 2025, and June 16, 2026). The heirs failed to pay the 2nd installment of the Estate Tax Amnesty due on December 16, 2025. The Deficiency Regular Estate Tax due was paid with increments on July 30, 2026.
Computation Details:
| Estate Tax Amnesty | Amount |
| Additional Property applied For Estate Tax Amnesty | PHP 2,500,000.00 |
| Less: Deductions | 0.00 |
| Taxable Netapplied For Estate Tax Amnesty | PHP 2,500,000.00 |
| Estate Tax Amnesty Due | PHP 150,000.00 |
| Installments Paid on time | PHP 50,000.00 |
| Installments not paid on time / unpaid | PHP 100,000.00 |
| Regular Estate Tax | Amount |
| Grossed-up Taxable Net Estate (originally filed) 518,835.00 – 465,000.00 = 53,835.00 53,835.00 / 15% = 358,900.00 358,900.00 + 5,000,000.00 | PHP 5,358,900.00 |
| Additional Property applied for Estate Tax Amnesty but failed to qualify due to non-payment on time of 2nd installment | 2,500,000.00 |
| Taxable Net Estate | PHP 7,858,900.00 |
| Regular Estate Tax Due 7,858,900.00 – 5,000,000.00 = 2,858,900.00 2,858,900.00 x 15% = 428,835.00 428,835.00 + 465,000.00 | PHP 893, 835.00 |
| Less: Estate Tax Paid Regular Estate Tax (originally filed) – 518,835.00 Estate Tax Amnesty (1st installment) – 50,000.00 | 568,835.00 |
| Deficiency Regular Estate Tax Due | PHP 325,000.00 |
| Add: Increments | |
| 25% Surcharge | 0.00 |
| 20% (Dec 16, 2015 – Dec 31, 2017) 12% (Jan 1, 2018 – Jul 3, 2025) | 133,027.40 334,758.90 |
| Compromise | 20,000.00 |
| Regular Estate Tax Payable | PHP 812,786.30 |
Overall, RMC No. 33-2026 reinforces stricter compliance and accountability in estate tax amnesty availments while still providing taxpayers flexibility through installment payment options. The issuance encourages complete disclosure of estate assets, timely submission of documentary requirements, and strict adherence to approved installment schedules to preserve the benefits granted under the Estate Tax Amnesty program.