Heirs often prepare tax papers and a deed of extrajudicial settlement at the same time. The steps are related but distinct. BIR Revenue Memorandum Circular No. 40-2025 clarified when proof of judicial or extrajudicial settlement was required for estate tax amnesty processing. The distinction matters for families whose tax filing proceeded while the deed was still being prepared.

Filing and eCAR processing are different stages

Under the circular, proof of settlement—such as a deed of extrajudicial settlement or court order—did not have to accompany the Estate Tax Amnesty Return and payment if it was not yet available. It stated that non-submission of that proof by 14 June 2025 would not invalidate the amnesty application. This addresses the specified filing context; it does not waive the document altogether.

The BIR said proof of settlement is required during processing and issuance of the electronic Certificate Authorizing Registration, or eCAR. An eCAR is significant when heirs seek transfer of titled property. The family should therefore prepare the deed, title records, and supporting civil documents early even if filing and payment had proceeded first.

Review ownership before signing

An extrajudicial settlement must correctly identify heirs, estate assets, and the legal basis for partition. Missing heirs, disputed property, a will, mortgages, or prior transfers may change the appropriate procedure. Discrepancies between the deed, tax return, and title can delay the eCAR and registration stages.

Read BIR RMC No. 40-2025 together with the estate’s actual filing history and current rules. Contact Cedeño Law Office for help coordinating settlement, tax documents, and transfer. This article does not establish present eligibility for an amnesty that may have expired or changed; individual advice requires review of dates and documents.