Policy Objective
- Enhance efficiency in servicing large taxpayers for real estate transactions.
- Transfers venue for filing returns and payment from the Revenue District Office (RDO) where the property is located to the Large Taxpayers Services (LTS) Office where the taxpayer’s head office is registered.
- Allows better consolidation of collections and performance tracking by LTS Offices.
Time and Venue for Payment of CGT and DST on Capital Asset Transfers
- CGT Return to be filed within 30 days after sale or disposition; DST Return within 5 days after month-end of taxable document execution.
- Payments made to Authorized Agent Banks (AAB) located within the RDO having jurisdiction over property location.
- Exception: If seller is a large taxpayer, filing and payment to be made at AAB of concerned LTS Office where seller’s principal office is registered.
- Applies similarly to taxable foreclosure sales.
Time and Venue for Payment of CWT and DST on Ordinary Asset Transfers
- Withholding agent/buyer to pay CWT within 10 days following month-end of transaction.
- DST Return and payment due within 5 days after month’s close.
- Payments generally made at AAB within RDO jurisdiction of property location.
- Exception for large taxpayer sellers: Filing and payment at AAB of concerned LTS Office where seller's principal office is registered.
- Special rule for joint ventures involving large and non-large taxpayers governing venue based on taxpayer classification.
- Applies also to taxable foreclosure sales.
Issuance of Tax Clearance Certificate (TCL) and Certificate Authorizing Registration (CAR)
- For non-large taxpayers, TCL and CAR issued by RDO where property is located after inspection and documentary compliance.
- For large taxpayers, TCL and CAR issued by LTS Office having jurisdiction over principal office.
- Ocular inspection procedures differ based on property location:
- Metro Manila and Metro Cebu properties inspected by LTS or LTDO Cebu.
- Properties outside metro areas inspected by Excise Tax Area personnel if available, otherwise by RDO.
- CAR no longer requires countersignature by RDO if inspection is conducted by LTS or EXTA personnel.
- If no inspection within 5 days by RDO, countersigning is ministerial; RDO can still later inspect.
- Additional tax collections from RDO inspections credited to that District Office.
Transitory Provisions
- Real estate transactions of large taxpayers before effectivity of these regulations:
- For "cash basis" or "deferred payment" sales where returns/payments were made to RDO, TCL/CAR processed by RDO remain valid.
- For installment sales with full payment and prior returns/payments to RDO, TCL/CAR issued by RDO remain valid.
- For installment sales without full payment, remaining taxes accrue to LTS Office which will process and issue TCL/CAR.
- Documents and returns filed with RDO to be endorsed to LTS Office for consolidation.
Repealing Clause
- All previous revenue regulations, memorandum orders, circulars, or issuances inconsistent with these regulations are repealed, amended, or modified accordingly.
Effectivity Clause
- Regulations take effect fifteen (15) days after publication in a newspaper of general circulation.