Supplemental Guidelines on the Grant of Relief on Surcharges and Interests on Local Tax on Transfer of Real Property Ownership

January 19, 2024 DOF DEPARTMENT CIRCULAR NO. 001.2024 SUBJECT : Supplemental Guidelines on the Grant of Relief on Surcharges and Interests on Local Tax on Transfer of Real Property Ownership SECTION 1. Rationale . This Circular is issued to supplement Department Circulars (DCs) No. 001.2019 1 and 001.2022 2 in view of the Estate Tax Amnesty Extension under Republic Act (RA) No. 11956, entitled "An Act Further Amending Republic Act No. 11213, Otherwise Known as the 'Tax Amnesty Act,' as Amended by Republic Act No. 11569, by Extending the Period of Availment of the Estate Tax Amnesty until June 14, 2024, and for Other Purposes," and to reiterate the policy that local government units (LGUs) must uphold the noble intention of tax amnesty, by easing the process for taxpayers towards full availment of estate tax amnesty, facilitating the formalization of real property transfers, broadening the national and local government's revenue base, and improving real property tax collection efficiency. 3 HTcADC SECTION 2. Grant of Relief . The grant of relief on surcharges and interests on local transfer tax on real property by LGUs, relative to the Estate Tax Amnesty Act shall be governed by the following supplemental guidelines: a. The grant of relief shall be authorized under a duly enacted local ordinance upon the effectivity of this Circular; b. The executor or administrator of the estate, or if there is no executor or administrator appointed, the legal heirs, transferees or beneficiaries, may avail of relief on surcharges and interests on local transfer taxes on estates of decedent/s who died on or before 31 May 2022, from 15 June 2023 until 14 June 2025 ; and c. The grant of relief shall cover transfers of real property ownership by succession only. SECTION 4. Tax Base of Assessments for Local Tax on Transfer of Real Property . Local treasurers shall assess the tax on the transfer of real property through succession upon the prevailing schedule of fair market value of the subject property at the time of the decedent's death. SECTION 5. Repealing Clause . Sections 2 and 3 (a) of DC No. 001.2019, Section 2 of DC No. 001.2022, and other provisions which are inconsistent with the provision of this Circular are hereby repealed or modified accordingly. SECTION 6. Effectivity . This Department Circular shall take effect upon its filing with the Office of the National Administrative Register of the University of the Philippines Law Center. CAIHTE (SGD.) RALPH G. RECTO Secretary of Finance Footnotes 1. Department of Finance (DOF) Department Circular (DC) No. 001.2019, Guidelines on the Grant of Relief on Surcharges and Interests on Tax on Transfer of Real Property Ownership in Support of the Extension of the Estate Tax Amnesty Program, September 5, 2019. 2. DOF DC No. 001.2022, Supplemental Guidelines on the Grant of Relief on Surcharges and Interests on Local Tax on Transfer of Real Property Ownership in Support of the Extension of the Estate Tax Amnesty Program, March 7, 2022. 3. Id. at 1.