Question & AnswerQ&A (BIR REVENUE MEMORANDUM CIRCULAR NO. 34-91)
The main purpose is to stop the practice of ante-dating deeds of sale involving real properties to avoid or reduce tax liabilities such as income tax, capital gains tax, and creditable withholding tax.
Ante-dating refers to the practice of assigning a date to a deed of sale that is earlier than the actual date of transaction or notarization, often to avoid tax implications.
1. Ante-dating before the effectivity of the capital gains tax law. 2. Ante-dating before the effectivity of the Finance Department Order establishing zonal values. 3. Ante-dating before regulations imposing creditable withholding tax on sales/transfers of real property.
They are considered ante-dated and the tax liabilities of the parties shall be determined based on the rules in effect at the time the documents are presented to the BIR.
It is the grace period within which deeds of sale must be presented to the BIR; beyond this period, the deed is presumed ante-dated.
Income tax, capital gains tax, and creditable withholding tax on sales or transfers of real property.
Tax liabilities will be determined according to the regulations in effect at the time the documents are presented to the BIR, not the antecedent date of the deed.
It results in the deed being considered as ante-dated for tax purposes, affecting how tax liabilities are computed.
It enforces the principle of truthful declaration of transaction dates to ensure correct computation and collection of taxes.