[Ask the Tax Whiz] What you need to know about the Real Property Tax amnesty under RA 12001

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The Philippine Tax Whiz answers the commonly asked questions regarding the recently issued DOF-BLGF Memorandum Circular 003-2025 emphasizing the Real Property Tax Amnesty under Republic Act 12001 (RA 12001). Taxpayers may avail of this program until July 5, 2026.

1. What is Real Property Tax? What are the benefits of this amnesty program?

Real Property Tax (RPT) or “amilyar” is an annual tax levied by local government units (LGUs) on real properties such as land, buildings, machinery, and other improvements. The tax is based on a fixed proportion of the property’s assessed value, which is determined by its fair market value and classification according to its actual use.

The following are the benefits of this program:

• Full waiver of penalties, interest, and surcharge
• Covers special levies, which include the Special Education Fund (SEF), idle land tax, and other special levy taxes
• Flexible payment options (i.e. one-time payment or installment payment)
• Legal relief to avoid possible legal actions or auctions related to unpaid RPT

2. What is the coverage, and until when can I avail myself of this program? Is this a full waiver of Real Property Tax, or will I still need to pay something?

The amnesty covers all unpaid or delinquent real property taxes incurred prior to July 5, 2024. The amnesty may be availed of only within two (2) years from the effectivity of the Act or until July 5, 2026. It applies to all real properties, whether residential, commercial, industrial, or agricultural, that have pending real property tax obligations within the said period. 

However, the amnesty does not extend to the following real properties:

• Delinquent real properties which have been disposed of at public auction to satisfy the RPT delinquencies;
• Real properties with tax delinquencies that are being paid pursuant to a compromise agreement; and
• Real properties that are the subject of pending cases in court for RPT delinquencies.

This is not a full waiver of the real property tax. Under the amnesty, the basic RPT and Special Education Fund (SEF) still need to be paid. However, penalties, interest, and surcharges are fully waived. This allows taxpayers to settle their obligations without the burden of added fees, making it more affordable to become compliant.

3. I want to avail myself of the Real Property Tax Amnesty. What are the requirements and processes?

The general requirements for Real Property Tax Amnesty are the following:

• Latest Tax Declarations
• Latest Tax Receipts (if applicable)
• Certificate of Title, which includes the lot number, location, and area of the property
• Valid government ID

Please visit your Local Government Unit or Municipal Treasurer’s Office for other specific requirements.

We highlight below the general steps needed when availing the Real Property Tax Amnesty Program.

The information provided in the article above is for general knowledge and information. We’re always happy to hear from you! If you want to know how these regulations affect your business, CONSULT ACG or email us at consult@acg.ph.