BIR ends time limit for tax clearance in land transfers

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The Bureau of Internal Revenue (BIR) announced that the agency has removed the five-year validity period for electronic certificate authorizing registration (eCAR).

In a Facebook post on Monday, June 24, BIR Commissioner Romeo D. Lumagui Jr. said that eCAR is now valid until its presentation to the Registry of Deeds. 

“We have removed the five-year validity period for the benefit of taxpayers,” Lumagui stated. “Under Bagong Pilipinas, the BIR will also be a service-oriented agency, not merely a collection-oriented one.”

“Whatever we can do to help ease the burden of our taxpayers in paying their taxes, we will implement,” he added.

An eCAR is a document for individuals requesting to transfer property ownership. It acts as a tax clearance that is essential for changing the property title to another name. 

However, Lumgui pointed out that non-electronic CARs, whihc did not originate from the eCAR System will require revalidation, in compliance with Revenue Regulation (RR) No. 12-2024.

“CARs from the BIR authorize the Land Registration Authority (LRA) to perform the transfer of ownership of sold or granted real properties,” Lumagui said.

“The CAR serves as a report of the property ownership transfer and tax payment,” he added.

Before the implementation of RR No. 12-2024, eCARs were initially valid for five years. 

However, Lumagui obseved that it was common for these eCARs to remain unused during the five-year period, necessitating individuals to acquire a new eCAR.

“This added burden on taxpayers has been eliminated under RR No. 12-2024. The eCAR remains valid until presented to the RD,” the BIR chief said.

“The changes brought about by the Ease of Paying Taxes Act (EoPT) are truly timely, a testament to our dedication to providing Excellent Taxpayers Service,” he concluded.