Quezon City Tax Amnesty 2023

Quezon City launched its tax amnesty program for real property transfer taxes in 2023 to help residents settle unpaid charges on transfers and succession of property. This initiative encourages compliance by waiving surcharges and interest for transactions executed before December 31, 2022, if payments are made by designated deadlines. The City Treasurer’s Office aims to ease burdens on taxpayers and improve revenue collection while avoiding the accumulation of penalties that can quickly become overwhelming.

Background of the 2023 Tax Amnesty in Quezon City

In line with national tax amnesty laws, Quezon City enacted Ordinance SP‘3246, Series of 2023, granting relief on surcharges and interest for transfer taxes of real property executed up to December 31, 2022. This local measure complements Republic Act No. 11956, which extended the national estate‘tax amnesty until June 14, 2025, covering estates of decedents who died on or before May 31, 2022.

Scope and Covered Taxes

The amnesty covers local transfer taxes pertaining to:

• Transfers by way of sale, donation, or succession completed on or before December 31, 2022.
• Surcharges and interests, while the base transfer tax remains unchanged.

The primary objective is to assist taxpayers in regularizing property titles without being unfairly penalized for past delays.

Eligibility and Conditions

To be eligible, the transfer must meet these criteria:

• Executed on or before December 31, 2022.
• Payment settled by June 30, 2023, according to the ordinance.

Eligible taxpayers include buyers, heirs, transferees, and legal representatives. They are required to pay the basic transfer tax but can avail of relief from penalties and interest accrued over the years.

Application and Payment Process

Taxpayers need to complete the following steps:

• Prepare required documents: deed of conveyance, title, tax declaration, and Community Tax Certificate (CTC) or valid ID.
• Visit the City Treasurer’s Office before the deadline to file and pay the full amount of the base transfer tax.
• Submit a sworn statement clarifying the true value and date of execution of the transaction.

The City Treasurer’s Office and City Assessor will validate the submission and official receipt will be issued once payment is complete.

Deadlines and Extensions

Quezon City’s program was specifically time‘bound:

• Deadline for amnesty payment: June 30, 2023.
• National estate tax amnesty deadline (related): June 14, 2025.

Paying within those dates allows taxpayers to avoid paying accumulated surcharges and interests while preserving rights to transfer property freely.

Benefits of the Amnesty Program

The program offers several advantages:

• Financial relief by waiving late‘payment surcharges and compounded interest.
• Clear, protected property titles, enabling smooth real property transactions.
• Improved peace of mind for families handling estate matters.
• Boost to city revenues and compliance culture.

This initiative also aligns with national reforms like the Estate Tax Amnesty under RA 11956, which similarly waived penalties for qualifying estates.

Comparing Local and National Amnesty Schemes

Quezon City focused on transfer taxes and local incentives. Nationally, RA 11956 provides a broader estate tax amnesty, covering interest, surcharges, and civil/criminal immunity for estates of decedents who died before May 31, 2022. While the local ordinance deals with municipal taxes, the national legislation addresses estate tax liabilities across the Philippines.

Important Tips for Beneficiaries

Anyone planning to avail of the amnesty should keep the following in mind:

• Act early deadlines are final and extensions are rare.
• Collect all necessary documents: titles, declarations, deeds, payment forms, and valid identification.
• Verify transaction dates and valuations; under‘declaring may trigger future penalties.
• Stay informed of related programs, like national estate tax amnesty and other local incentives.

Consequences of Missing the Amnesty Window

Failing to settle taxes during the amnesty period may result in:

• Accumulation of significant surcharges (up to 25%) and interest at 2% per month.
• Legal obstacles in title transfer or property registration.
• Potential tax liens or judicial actions from the city government.

Acting within the amnesty window is critical to avoid escalating liabilities and administrative problems.

How the City Promotes Compliance

To encourage participation, Quezon City took these steps:

• Public notices via official channels highlighting deadlines and benefits.
• Extended operating hours on critical dates to accommodate taxpayers.
• Support from City Treasurer’s Office staff to provide guidance and process submissions faster.

Quezon City’s 2023 tax amnesty on local transfer taxes is a pragmatic and timely opportunity for taxpayers who need to regularize property transactions predating December 31, 2022. By paying only the base transfer tax by the June 30, 2023 deadline, property owners can avoid punitive charges and secure clear titles. This local initiative, in concert with broader national estate tax amnesty efforts, helps ease financial burdens, streamline property processes, and encourage compliance making it a key window for action. Residents are advised to gather the necessary documents and meet deadlines promptly to fully capitalize on these benefits.