Homeowners and lot owners should prepare now their supporting documents for lots they own or still under the names of long-deceased parents or grandparents because of the tax amnesty soon to become law, Misamis Oriental Representative Juliette Uy has advised.
“Maraming hindi makapagpa-titulo ng lupa dati dahil hindi nila mabayaran ang estate tax dahil mahal, eh ngayon (because of TRAIN Law) mas mura na at magkakaroon pa ng tax amnesty,” Uy said.
“Estate tax amnesty plus the lower estate tax rates and exemptions under the TRAIN Law are a perfect combination of incentives for all homeowners and lot owners nationwide. They can now put their financial affairs in order,” said Uy, one of the authors of the tax amnesty bill (HB 8554) and TRAIN Law (RA 10963).
Uy also said the tax amnesty covers unpaid estate taxes from 2017 and prior years.
“Sobrang taas dati ng estate tax bago ang TRAIN Law. Umaabot ng hanggang 20 percent ang estate tax noon. Ngayon, 6 percent na lang at meron pang P10 million exemption para sa family home at standard deduction na P5 million,” the congresswoman added.
She explained that with the lower rates and the amnesty, “a huge financial burden and family worries are lifted from the shoulders of many Filipino families and small businesses because they can avail of the tax amnesty and pay at today’s lower rates.”
“Ihanda na nila ang mga dokumento ngayong December pa lang. Itaon na nila ang kanilang family meeting tungkol sa mga estate tax kapag sila ay mag-reunion ngayong Pasko o Disyembre. Mag-assign malamang sila ng iisang miyembro ng pamilya na mag-aasikaso ng mga dokumento at pag-file,” Congresswoman Uy advised.
Uy also said the tax amnesty and lower tax rates will not only settle past unpaid taxes.
“Those who inherited lots can now build their own homes or start new businesses soon after they file their estate tax returns,” she said.
“I advise homeowners and lot owners to read BIR Revenue Regulations No. 12-2018 and the upcoming regulations on the tax amnesty. They should also hire an accountant to help them prepare all the needed documents for filing with the BIR,” Uy said.
Uy noted the deadline for availment of the tax amnesty is only one year from the effectivity of the soon-to-become law.
She said the House and Senate have ratified the reconciled version of the tax amnesty bills. President Duterte can sign it into law this month or let it lapse into law.