BIR issues guide for transfer of real properties
Published Oct 04, 2018 16:22 pm
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Updated Oct 04, 2018 16:22 pm
By Jun Ramirez
The Bureau of Internal Revenue (BIR) has come out with a guideline addressing the problems encountered by a taxpayer (TP) with the Land Registration Authority (LRA) in the transfer of real estate titles to the buyer or the recipient of the donation.
BIR
(Manila Bulletin File Photo) In signing Revenue Memorandum Circular No. 85-2018, BIR Commissioner Caesar R. Dulay stated that the one-time transaction (ONETT) team of the district office will issue to the taxpayer two electronic Certificates Authorizing Registration (eCAR) – one for the settlement of the estate of the decedent and the other for transfer via sale or donation. The two eCARs shall be simultaneously submitted to the LRA since the submission of one will invalidate the second. If the taxpayer presented two separate documents such as extra-judicial settlement (without the will of the deceased) and the deed of absolute sale or deed of donation, the ONETT shall also issue two eCAR. The first eCAR covers the settlement of the estate to be presented by the taxpayer to Register of Deeds for the issuance of the new title. The new title number to be issued for the first transaction on the settlement of the estate shall be the basis for the issuance of the eCAR for the second transaction, be it sale or donation. The guideline also advises the taxpayer to pay simultaneously all applicable taxes for all transactions to avoid incurring penalties and interest.
BIR(Manila Bulletin File Photo) In signing Revenue Memorandum Circular No. 85-2018, BIR Commissioner Caesar R. Dulay stated that the one-time transaction (ONETT) team of the district office will issue to the taxpayer two electronic Certificates Authorizing Registration (eCAR) – one for the settlement of the estate of the decedent and the other for transfer via sale or donation. The two eCARs shall be simultaneously submitted to the LRA since the submission of one will invalidate the second. If the taxpayer presented two separate documents such as extra-judicial settlement (without the will of the deceased) and the deed of absolute sale or deed of donation, the ONETT shall also issue two eCAR. The first eCAR covers the settlement of the estate to be presented by the taxpayer to Register of Deeds for the issuance of the new title. The new title number to be issued for the first transaction on the settlement of the estate shall be the basis for the issuance of the eCAR for the second transaction, be it sale or donation. The guideline also advises the taxpayer to pay simultaneously all applicable taxes for all transactions to avoid incurring penalties and interest.