Question & AnswerQ&A (BIR REVENUE MEMORANDUM CIRCULAR NO. 76-2007)
The purpose is to prescribe additional mandatory documentary requirements for one-time transactions involving transfers of real property to ensure that all internal revenue taxes due have been correctly paid and remitted to the government.
1. Photocopy of the official receipts issued by the seller; 2. Certified true copy of the original Certificate Authorizing Registration (CAR) or certification issued by the Registry of Deeds regarding the CAR details.
To determine if the sale of real property is on a cash basis, deferred payment sale, or installment plan, and to validate the nature of the transaction for proper tax assessment.
Acknowledgement receipts issued by the seller to the buyer or any proof of payment.
The original official receipts must be presented to the Bureau of Internal Revenue for authentication during the processing of the application for the Certificate Authorizing Registration (CAR).
The CAR is a document issued by the BIR authorizing the registration of the transfer of real property after internal revenue taxes have been paid.
The serial number of the CAR, date of issuance, Revenue District Office Number, name of the Revenue District Officer who signed the CAR, type of taxes paid, and amount paid per tax type.
For the Original/Transfer Certificate of Title (OCT/TCT) or Condominium Certificate of Title (CCT) that is the subject of the current sale/transfer issued starting 2007.
Section 5 of Revenue Regulations No. 24-2002 and Section 1 of Memorandum Order No. 233, as circularized in Revenue Memorandum Circular No. 3-2007.