Simply relying on what the law says about paying estate tax might not get you the results you desire. There are practices and additional steps not found in the Philippine tax code or in issuances of the Bureau of Internal Revenue (BIR) that taxpayers of all kinds must take note as they meet the stringent deadlines for paying estate tax. We’ve compiled a few things we’ve learned along the way to make this process easier for everyone. 

Paying taxes remains a huge challenge—not just because of the financial burden on Filipino citizens, but also due to the time and energy involved. Not only do we have to save up and set aside a part of our savings for the different kinds of tax liabilities every citizen owes. We also have to compile stacks of documents and endure long lines at the revenue district office (RDO) and whisper a little prayer that our calculations are correct. 

This was the experience of many Filipinos last June 2025, the deadline of the Estate Tax Amnesty. This provides for a system where people are given a one-time opportunity to settle their estate tax obligations with certain penalties waived. Through this, the government aims to actually increase tax collection and minimize the fear of taxpayers that they will be unduly burdened by such penalties.    

With the Tax Amnesty Act, the heirs need only pay the general estate amnesty tax at the rate of six percent (6%) of the decedent’s total net estate at the time of death. Gone would be the penalties, interests, or even criminal or civil liabilities. 

For example, if an individual died leaving a house, lot, car, and bank accounts worth one million pesos (PHP 1,000,000.00) in the year of 2003, the heirs just need to pay sixty thousand pesos (PHP 60,000.00) as estate tax. This is as long as such tax is paid before the deadline set by law. 

We attended to a client who sought our help just three days before the deadline. Naturally, there was a lot of anxiety on her part since she was facing penalties worth millions of pesos. We were thankfully able to pay on time and avoided those life-threatening penalties. 

 A quick Google search would yield the several clear guidelines that the Bureau of Internal Revenue (BIR) and other sources have prepared for the purpose of paying estate tax. It may seem that this is a situation that any taxpayer could have avoided.  

 The issue of late payments and missing deadlines still persists, nonetheless. It would then seem that there is so much more to paying taxes than what Google can tell you.

With that, we’d like to share with you a list of tips grounded in our firm’s experience in tax law that will surely make the estate tax process a lot easier:

      1. Secure the Originals.

The BIR published an online flyer listing down mandatory requirements for the availing. Estate Tax Amnesty. While it’s still better to counter-check with your local RDO, the said flyer has a list of documents that are either readily available, easily requestable, or need to be processed way in advance. 

You will only be able to move if you have complete original documents. When you go to the BIR office, there are gatekeepers at almost every step of the process. For example, the security guards are sometimes deputized to check the documents of every taxpayer entering the doors of the BIR revenue office. If your documents are incomplete, they will turn you away. 

      2.  Secure an Estate TIN before anything. 

We saw taxpayers who lined up all day and through the night only to get rejected at the 11 PM mark since they did not have a Tax Identification Number (TIN) specifically for the estate. This is a mandatory requirement under prevailing revenue regulations. 

When a person dies, the BIR needs to cancel his or her TIN and create a new one. This is because an estate, which includes the properties, rights, and debts of the deceased, is a separate entity from the individual. The estate thus needs to be separately identified with a completely new profile or TIN under the BIR. 

It is thus important to apply for an estate TIN by filling up a copy of BIR Form No. 1904 or application for registration.

      3. Only two things are certain: death and taxes. Fix the tax part ASAP. 

It is difficult to accept if a person is on his or her deathbed or has a terminal illness. Nonetheless, the conventional wisdom that only death and taxes are inevitable remains true. By the time the person passes, it is prudent to have the tax part under control. If that side of the obligation is not under control by then, the person’s children will have to shoulder it–plus penalties. 

Liquidate all the properties of the person. This is done by preparing a comprehensive inventory of all the person’s properties and liabilities. If the person has debts, this can be deducted from the total taxable income. 

Know the approximate amount of the estate after you conduct an inventory. You need to know both the fair market value (FMV) and zonal value of the real properties such as land, houses, and buildings. For FMV, this can be found in the tax declaration of the property which can be procured from the city or municipality where the property is found. FMV can also be independently researched by third party appraisers for a price.  

This is important because the computation of estate tax by the BIR is based on either FMV or zonal value—whichever is higher. 

     4. Be humble and patient. 

As with any transaction with government agencies, kindness and courtesy go a long way. Most government employees and officers are tired from mind-numbing work and hundreds if not thousands of inquiries from taxpayers like us. They appreciate it when you come to their office prepared and you extend kindness and understanding their way. 

With the massive volume of people coming to the RDOs everyday, it is natural that revenue officers and staffers are more willing to assist taxpayers who stand out due to their kindness and candor. They are more likely to reciprocate by giving clear directions on how to proceed with the estate tax process, and to answer more queries from you.  

It is thus important to exercise kindness and humility when dealing with the BIR. After all, they will be the ones making the final computation for estate tax. It will also be much easier to process future tax obligations when you have developed a positive working relationship with the BIR officers in your RDO. 

     5. Work backwards from the deadline. 

Deadlines are any taxpayer’s greatest enemy. When a period for filing applications or documents for tax purposes lapses, this opens the taxpayer to crippling penalties—as with the extended deadline for the payment of estate tax. 

It is thus important to plan ahead because requesting for certified copies of official documents takes time.  

For example, the estate of a deceased person also contains the person’s shares of stocks. This is evidenced by a stock certificate which can take private corporations around a month to issue. The computation of the fair market value (FMV) of shares of stock at the time of the person’s death would also take time as this depends on whether the company is publicly-listed or not. This might entail additional coordination with agencies like the Philippine Stock Exchange and additional fees for urgent processing. 

It would be prudent to allot around one to two months to procure the necessary documents for paying estate tax or applying for estate tax amnesty. 

Final Note 

 Since the Estate Tax Amnesty law’s promulgation in 2019, there have been two extensions—once in 2021 and another in 2023. While we are cautiously optimistic that there will be another extension, this is not yet guaranteed.  

We hope that these tips will nonetheless guide you in case you need to settle the estate of a deceased relative or are preparing for the same. Paying taxes is never an easy task given the time and resources involved, but it is our sincere hope that our advice lessens the burden of dealing with death and taxes. 

For further information, you can check out the BIR’s online primer on payment of estate tax, which includes the necessary documentary requirements per stage of payment. You may also refer to BIR Revenue Regulation No. 10-2023 for an official and comprehensive guide on estate tax amnesty.