QuestionsQuestions (BIR REVENUE REGULATIONS NO. 5-2009)
It reverts the venue for filing returns and paying capital gains tax (CGT), creditable withholding tax (CWT), and documentary stamp tax (DST) on onerous transfers of real property owned by large taxpayers to the RDO having jurisdiction over the location of the property.
It covers the filing of CGT returns, CWT returns, and DST returns, and the payment of these taxes due on onerous transfers (sale, exchange, barter, disposition) of real property owned by large taxpayers, including taxable foreclosure sales.
Payment of CGT and DST (and CWT where applicable) must be made to AABs located within the RDO that has jurisdiction over the property’s location.
Venue is generally determined by the place where the real property being transferred is located.
RR No. 4-2008 amended the venue rule only for large taxpayers by centralizing processing in the Large Taxpayers Office where registered, including avoiding the prior need to secure CAR/TCL from various RDOs.
Because implementation issues and taxpayer re-classification (delisting/de-classification and recent enlistment) caused confusion; the revert also allows quicker ocular inspection of the property prior to CAR/TCL issuance.
Within thirty (30) days following each sale, exchange, or disposition, the CGT return (BIR Form 1706) must be filed and CGT paid to the AAB within the jurisdiction of the RDO where the property is located.
The seller or the buyer may file the CGT return; payment is made to the AAB within the RDO jurisdiction over the property location.
Whichever is higher: the gross selling price or the fair market value (as determined in accordance with Section 6(E) of the Tax Code).
DST return (BIR Form 2000-OT) must be filed within five (5) days after the close of the month when the taxable document was made/signed/accepted/transferred, and DST must be paid at the same time the return is filed.
Creditable withholding taxes must be paid by the withholding agent/buyer upon filing the CWT return (BIR Form 1606) with the AAB within the RDO jurisdiction over the property location within ten (10) days following the end of the month of the transaction (subject to specific rules such as RR 2-98 and EFPS rules if applicable). DST return must be filed within five (5) days after the close of the month and paid at the same time.
The RDO of the district where the property is located issues the CAR/TCL upon presentation of the required tax returns and proof of full payment through bank validation.
Presentation of CGT or CWT return and DST return with bank validation evidencing full payment of the applicable taxes due; additionally, assigned revenue officers must indicate on sale/exchange/transfer documents the CAR/TCL details before release.
It has a one (1)-year validity for presenting to the Register of Deeds, but may be revalidated with total period not exceeding two (2) years counted from issuance; presentation must occur within the maximum period of not more than two (2) years.
It shall be deemed permanently expired and of no effect; new returns and proof of tax payments are needed to obtain a new CAR/TCL.
In no instance shall the Register of Deeds honor a CAR/TCL with erasures or alterations.
If, as of the effectivity of RR No. 5-2009, there is no full payment of the full consideration and taxes on the installment basis, remaining installment payments begin to accrue to the RDO where the property is located, which processes and issues the TCL/CAR.
The pertinent documents and returns relative to prior tax payments are endorsed by the concerned LTS Office to the RDO where the property is located for consolidation with the RDO’s own records to determine full compliance and full payment before CAR/TCL issuance.