Submission of Mandatory Documentary Requirements for One-time Transactions Involving Transfer of Real Property

The bureau recently issued Revenue Memorandum Circular (RMC) No. 105-2016 amending certain provisions of RMC No. 76-2007, in relation to the Submission of Mandatory Documentary Requirements for One-time Transactions Involving Transfer of Real Property.

 

Item No. 2 of RMC No. 76-2007 shall no longer be required in the processing of one-time transactions involving transfer of real property and the issuance of electronic Certificate Authorizing Registration (eCAR):

 

"2. Certified true copy of the original CAR (copy of the Registry of Deeds) pertaining to the transfer of property prior to the issuance of Original/Transfer Certificate of Title (OCT/TCT) or Condominium Certificate of Title (CCT) which is the subject of the current sale/transfer, or certification issued by the Registry of Deeds indicating the serial number of the CAR, date of issuance of CAR, the Revenue District Office Number of the district office that issued of the CAR, the name of the Revenue District Officer who signed the CAR, the type of taxes paid and the amount of payment per tax type.

 

The aforementioned document shall be submitted for OCT/TCT/CCT issued starting 2007, in case the Register of Deeds fails to annotate the information contained in the CAR as prescribed under Section 5 of Revenue Regulations No. 24-2002 dated November 15, 2002 and Section 1 of Memorandum Order No. 233 dated December 11, 2006 issued by President Gloria Macapagal-Arroyo, as circularized in Revenue Memorandum Circular No. 3-2007."

 

Please refer: http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMC%20No.%20105-2016.pdf of the full text of RMC No. 105-2016.

Validity of eCARs reckoned from the Date of Issuance for Purposes of Presenting the Same to Registry of Deeds

The bureau  has issued Revenue Memorandum Order (RMO) No. 55-2016 amending  certain provisions of RMO No. 15-2003, as amended by RMO No. 22-2016, relative to the Processing of Electronic Certificate Authorizing Registration (eCAR) and its Signatories.

It is stated in the RMO under Section III Policies and Guidelines, Item No. 6 of RMO No. 22-2016 is likewise amended to read as follows:

"6. eCARs shall have a validity of three (3) years reckoned from the date of issuance for purposes of presenting the same to the Registry of Deeds. Xxx. The LT Division Chief/RDOs or ARDOs shall issue a new eCAR to the taxpayer in case the latter fails to present the eCAR to the Registry of Deeds within the three (3) year validity period. Xxx."

Please refer: http://www.bir.gov.ph/images/bir_files/internal_communications_3/Full%20Text%20of%20RMO%202016/RMO%20No.%2055-2016.pdf of the full text of RMO No. 55-2016.

Joint Memorandum Circular Between the Bureau of Internal Revenue (BIR)and Land Registration Authority (LRA)

The Revenue Memorandum Circular No. 28-2015 was issued by the BIR of the Joint Memornadum Circular between the Bureau of Internal Revenue (BIR) and Land Registration Authority (LRA) signed on April 6, 2015 in Quezon City, Metro Manila, Philippines.

The circular shall cover all transactions involving transfer of real properties processed in the Registries of Deeds requiring the presentation of the eCAR, which shall be automatically verified using the PHILARIS prior to the processing of a transfer transaction.

The automated verification of the eCAR shall be implemented in the Registries of Deeds already using the PHILARIS for transaction processing, and where the corresponding BIR Office has started using the BIR eCAR System for the issuance of the eCAR.

The eCAR verification follows the general guidelines listed below:

1. BIR shall provide LRA with data relevant to an eCAR by directly updating LRA-BIR eCAR Database;

2. BIR shall issue an eCAR only after successfully updating the LRA-BIR eCAR Database;

3. The eCAR shall contain  a barcode, which shall be scanned at the Registry of Deeds for verification, after the entry into the Electronic Primary Entry Book of the eCAR as a supporting document of a transaction;

4. The eCAR presented shall be automatically validated against the data provided by BIR in the LRA-BIR eCAR Database, and only transactions that have validated eCARs shall be approved by the Registry of Deeds; and,

5. LRA shall provide BIR relevant data relating the eCAR to its corresponding Certificate of Title.

Please refer http://www.bir.gov.ph/images/bir_files/internal_communications_2/RMC%20No%2028-2015.pdf of the full text of RMC No. 28-2015.