See - BIR relaxes property transfer requirements | Business, News, The Philippine Star | philstar.com
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MANILA, Philippines -- Property transfers just got easier with the Bureau of Internal Revenue removing the need to present proof that taxes were paid for acquiring the land for the first time.
Under Revenue Memorandum Circular 105-2016, submission of a copy of certificate authorizing registration (CAR) "shall no longer be required" on one-time property transfers.
The order, signed by BIR Commissioner Caesar Dulay, was dated Aug. 23, but was only released on Wednesday.
The CAR is proof that levies were paid for the property being transferred. Under the order, the CAR being pertained to is the document from the current owner's original acquisition of property before he or she transfers it again.
BIR officials could not be reached for comment as of this post.
But Benedict Tugonon, president of industry group Tax Management Association of the Philippines, welcomed the move.
"This will surely expedite the processing of tax clearances on real property transactions and avoid unnecessary potential issues," Tugonon said in a text message.
He alleged that before, requiring CAR has resulted into a "finding or fishing expedition" on past transactions involving the property, which he said should be tackled "separately."
"Requiring the submission of the previous CAR when the property was acquired was unreasonable and at times, impossible to comply," Tugonon said.
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