Payment of the estate tax by installment
In case of insufficiency of cash for the immediate payment of the total estate tax due, the estate may be allowed to pay the estate tax due through CASH INSTALLMENT, including the corresponding terms and conditions:
i. 2-YEAR RULE: The cash installments shall be made within two (2) years from the date of filing of the estate tax return;
ii. 1-YEAR RULE: The estate tax return shall be filed within one year from the date of decedent’s death;
iii. INDICATION AND APPROVAL OF FREQUENCY: The frequency (i.e., monthly, quarterly, semi-annually or annually), deadline and amount of each installment shall be indicated in the estate tax return, subject to the prior approval by the BIR;
iv. PENALTIES AND INTERESTS: In case of lapse of two years without the payment of the entire tax due, the remaining balance thereof shall be due and demandable subject to the applicable penalties and interest reckoned from the prescribed deadline for filing the return and payment of the estate tax; and
v. ENFORCEMENT ACTION BY CIR: No civil penalties or interest may be imposed on estates permitted to pay the estate tax due by installment. Nothing in this subsection, however, prevents the Commissioner from executing enforcement action against the estate after the due date of the estate tax provided that all the applicable laws and required procedures are followed/observed. (Section 9[6.1], Revenue Regulation No. 12-2018. January 25, 2018)
i. 2-YEAR RULE: The cash installments shall be made within two (2) years from the date of filing of the estate tax return;
ii. 1-YEAR RULE: The estate tax return shall be filed within one year from the date of decedent’s death;
iii. INDICATION AND APPROVAL OF FREQUENCY: The frequency (i.e., monthly, quarterly, semi-annually or annually), deadline and amount of each installment shall be indicated in the estate tax return, subject to the prior approval by the BIR;
iv. PENALTIES AND INTERESTS: In case of lapse of two years without the payment of the entire tax due, the remaining balance thereof shall be due and demandable subject to the applicable penalties and interest reckoned from the prescribed deadline for filing the return and payment of the estate tax; and
v. ENFORCEMENT ACTION BY CIR: No civil penalties or interest may be imposed on estates permitted to pay the estate tax due by installment. Nothing in this subsection, however, prevents the Commissioner from executing enforcement action against the estate after the due date of the estate tax provided that all the applicable laws and required procedures are followed/observed. (Section 9[6.1], Revenue Regulation No. 12-2018. January 25, 2018)
