QuestionsQuestions (REVENUE MEMORANDUM CIRCULAR NO. 46-2018)
Section 214 governs the redemption of property sold due to tax delinquency. It sets the right period, the amounts that must be paid to redeem, the requirement for issuance of redemption certificates, and the effect of redemption on the tax lien, while also addressing the continued entitlement to possession and income until the redemption period expires.
Within one (1) year from the date of sale.
The delinquent taxpayer, or any one for him.
To the Revenue District Officer (RDO).
The delinquent taxpayer must pay: (1) public taxes; (2) penalties prescribed under Section 248; (3) interest prescribed under Section 249 from the date of delinquency to the date of sale; and (4) interest on the purchase price at 15% per annum from the date of purchase to the date of redemption.
Yes. RMC No. 46-2018 emphasizes that redemption is valid only if all public taxes, including interests and penalties, are paid.
No. Failure to pay all public taxes including interests and penalties makes the redemption invalid.
After redemption, the property shall be free from the lien of such taxes and penalties.
The owner shall not be deprived of possession of the property and shall remain entitled to rents and other income until the expiration of the time allowed for redemption.
15% per annum, computed from the date of purchase to the date of redemption.
Interest prescribed under Section 249 is computed from the date of delinquency to the date of sale.
It clarifies that the interest on the purchase price is 15% per annum from the date of purchase to the date of redemption, and that this must be paid for redemption to be valid.
The person paying is entitled to: (1) delivery of the certificate issued to the purchaser, and (2) a certificate from the RDO that he has redeemed the property.
The RDO shall forthwith pay over to the purchaser the amount by which the property has thus been redeemed.
It allows redemption by “any one for him,” meaning third persons may redeem on behalf of the delinquent taxpayer.
It provides guidance to ensure proper implementation of Section 214 during redemption, particularly the requirement that all public taxes, interests, and penalties must be paid for a redemption to be valid.
The redemption would not legally divest the purchaser’s title effects to the extent contemplated by redemption; the property would not be treated as redeemed and thus would not be free from the tax lien as a result of an invalid redemption.