Through Republic Act No. 12001, entitled “An Act Instituting Reforms in Real Property Valuation and Assessment in the Philippines, Reorganizing the Bureau of Local Government Finance, Granting Tax Amnesty on Real Property and Special Levies on Real Property, and Appropriating Funds Therefor,” also known as the Real Property Valuation and Assessment Reform Act (or simply “RPVARA Law”), the Philippine government has introduced significant reforms to the country’s real property valuation and assessment system.
Signed into law on June 13, 2024, the RPVARA Law officially became effective on July 5, 2024, and its Implementing Rules and Regulations (IRR) was issued by the Department of Finance on December 10, 2024.
The RPVARA Law lays down a uniform valuation system across the country, streamlining real property taxation, and promoting transparency and efficiency. However, a key feature that has drawn much attention, especially from real property owners, is the grant of tax amnesty on certain real property tax delinquencies, which a rare opportunity to settle obligations without the heavy burden of penalties and surcharges.
The Tax Amnesty Program Under the RPVARA Law
Section 30 of the RPVARA Law provides for the grant of a real property tax amnesty. It states:
“SEC. 30. Grant of Tax Amnesty on Real Property Taxes and Special Levies on Real Property. – There is hereby granted a real property tax amnesty which shall cover penalties, surcharges, and interests from all unpaid real property taxes, including Special Education Fund, idle land tax, and other special levy taxes, prior to the effectivity of this Act: Provided, That the real property tax amnesty hereby authorized and granted can only be availed within a period of two (2) years after the effectivity of this Act.
This relief may be availed by a delinquent property owner with the option of one-time payment or installment payment of the delinquent real property taxes within two (2) years from the effectivity of this Act.
This amnesty shall not extend to the following real properties:
(a) Delinquent real properties which have been disposed of at public auction to satisfy the real property tax delinquencies;
(b) Real properties with tax delinquencies which are being paid pursuant to a compromise agreement; and
(c) Real properties subject of pending cases in court for real property tax delinquencies.”
The Implementing Rules and Regulations (IRR) issued by the Department of Finance further elaborate on this program in Section 56, which reads:
“Section 56. Grant of Tax Amnesty on Real Property Taxes and Special Levies on Real Property. There is hereby granted a real property tax amnesty on penalties, surcharges, and interests from all unpaid real property taxes, including the Special Education Fund, Idle Land Tax, and other Special Levy Taxes, that were incurred prior to the effectivity of the Act or on July 5, 2024. Provided, that the real property tax amnesty can only be granted within two (2) years after the effectivity of the Act or until July 5, 2026.
This relief may be availed of by a delinquent real property owner with the option of one-time payment or installment payment of the delinquent real property taxes within two (2) years from the effectivity of the Act or until July 5, 2026. The LGUs may issue an ordinance to determine the means and method of payment only. In no way shall non-issuance of such an ordinance prevent the implementation of the grant of tax amnesty in accordance with the Act.
The amnesty shall not extend to the following real properties:
(a) Delinquent real properties which have been disposed of at public auction to satisfy the real property tax delinquencies;
(b) Real properties with tax delinquencies which are being paid pursuant to a compromise agreement; and
(c) Real properties subject of pending cases in court for real property tax delinquencies.”
In Simpler Terms
Under the RPVARA Law, if you have unpaid real property taxes that became due before July 5, 2024, you now have a chance to settle your dues without paying penalties, surcharges, or interests. You may opt to pay the principal amount either in full or through installments within a two-year window, ending on July 5, 2026.
However, not all properties are eligible. If your property was already sold at a public auction to satisfy tax delinquencies, if you are already paying under a compromise agreement, or if your delinquency is the subject of a pending court case, you cannot avail of the amnesty.
This program gives real property owners an opportunity to settle outstanding taxes at a significantly lower cost.
How We Can Help
At Abo and Peñaranda Law Firm, we are dedicated to helping real property owners fully maximize the benefits offered by the RPVARA Law’s tax amnesty program. Our experienced team can assess your real property tax situation, confirm your eligibility, and expertly guide you through every step of the application and compliance process.
We will ensure that your documentation is complete, accurate, and properly filed, assist you in coordinating with the relevant local government offices, and, if necessary, help you arrange installment payment terms that are manageable and aligned with your financial circumstances.
