Clearing the Slate: Tax Amnesty until July 5, 2026 under the RPVARA Law (RA No. 12001)

Republic Act No. 12001, otherwise known as the Real Property Valuation and Assessment Reform Act (RPVARA), institutionalizes a unified, fair, and equitable real property valuation system in the Philippines. As a transition measure, the law provides for a Tax Amnesty Program to encourage taxpayers to settle outstanding real property tax (RPT) liabilities and clean up local government unit (LGU) tax records prior to the full implementation of the reformed valuation system. The amnesty is intended to improve RPT compliance, update and correct property declarations and assessments, and reduce disputes and enforcement actions related to past RPT delinquencies.

Coverage of the Tax Amnesty

The Tax Amnesty Program applies to all unpaid real property taxes that accrued before the effectivity of the RPVARA (i.e., prior to July 5, 2024), and includes:

• Basic real property tax;
• Special Education Fund (SEF) tax;
• Idle land tax; and
• Other special levies on real property.

All categories of taxpayers — individuals, corporations, partnerships, trusts, estates, and successors-in-interest — are eligible, subject to exclusions below.

Exclusions from the Amnesty

The tax amnesty does not apply to real property accounts that are:

1. Disposed of at a public auction to satisfy tax delinquencies;
2. Currently being paid under a compromise agreement; or
3. Subject of pending court cases for real property tax delinquencies.

These exclusions are drawn directly from both the statute and its IRR.

Relief Granted and Amnesty Period

Moreover, under Section 30 of the RPVARA and its IRR, the Tax Amnesty grants a full waiver of all penalties, surcharges, and interest on covered unpaid real property taxes, requiring payment of only the basic tax due. Settlement may be made in a lump sum or, where permitted by local ordinance, through installment payments. The amnesty is available for a two-year period from the effectivity of the RPVARA, until 5 July 2026, and all requirements and payments must be completed within this period to qualify.

How to Avail

General steps to avail the amnesty under the RPVARA include:

1. Check eligibility: Determine tax delinquencies before July 5, 2024.
2. File application: Submit an amnesty application with the local assessment or treasurer’s office.
3. Declare/Update Records: Confirm and, if needed, update property information with the assessor.
4. Compute Tax Due: Determine the basic real property tax for each delinquent year.
5. Pay Basic Tax: Settle the required basic tax either in full or in installments within the amnesty period.
6. Obtain Clearance: Secure official receipts and certificates showing settlement under the amnesty.

Each LGU may issue specific local guidelines and forms. Prompt action is encouraged due to the deadline.

Conclusion

The RPVARA Tax Amnesty offers a limited two-year window for real property owners to settle past RPT delinquencies by paying only the basic tax due, with full waiver of penalties, interest, and surcharges. Availment presents a clear financial and compliance advantage, particularly for accounts with long-standing delinquencies or significant penalty exposure. As LGUs move toward stricter enforcement under the reformed valuation framework, early availment is strongly recommended to mitigate future tax risks and enforcement actions.

Article written by: Sherina D. Garcia