Definitions
- Tax Clearance Certificate (TCL): Computer-generated certificate issued in computerized RDOs confirming full payment of taxes related to real property transfer.
- Certificate Authorizing Registration (CAR): Existing tax clearance form issued in non-computerized RDOs for transferring real property.
- "Where transferor is registered": The RDO having jurisdiction over the domicile, legal residence, or principal office or place of business where the taxpayer-transferor is or should be registered.
Guidelines and Procedures for Issuance of TCL/CAR
1. Estate Tax
- Estate tax clearance issued by RDO where decedent was domiciled or registered at time of death, regardless of property location.
- For non-resident decedents:
- If estate tax return filed with Philippine Embassy/Consulate abroad and transmitted to RDO No. 51 (Pasay City), that RDO issues TCL/CAR.
- If no Philippine legal residence, filing with Commissioner through RDO No. 39 (Quezon City); that RDO issues TCL/CAR.
- For properties in multiple RDO jurisdictions, the RDO issuing TCL/CAR shall provide certified true copies for registration purposes.
- Estate tax returns undergo verification and audit, with deficiency taxes paid before issuance of Confirmation/Termination Letter and TCL/CAR.
2. Donor's Tax
- Donor's tax returns processed and TCL/CAR issued by RDO where donor is resident or registered.
- Non-resident donors file returns similarly to estate tax rules, with issuance of TCL/CAR by RDO 51 or RDO 39 as applicable.
- When donation involves properties in multiple districts, certified true copies of TCL/CAR issued for registration.
- Verification, audit, and payment of deficiencies required before final issuance of documents.
3. Capital Gains Tax and Creditable Withholding Tax
- On sale, exchange, or transfer of real property, TCL/CAR issued by RDO where seller-transferor is or should be registered.
- Tax returns and payments (capital gains tax, creditable withholding tax, documentary stamp tax) must be filed and paid at the seller-transferor's RDO.
- For multiple properties in different RDOs, certified true copies of TCL/CAR issued for registration purposes.
Data on Zonal Valuations
- The Chief, Asset Valuation Division-National Office must provide all RDOs with updated zonal valuation data via computer diskette or printout.
- RDOs encountering difficulty identifying zonal valuation of properties outside their jurisdiction must consult the responsible RDO to verify correct valuation for tax computation.
Repealing Clause
- Existing issuances inconsistent with this order are repealed or amended accordingly.
Effectivity
- The memorandum order takes effect immediately upon issuance on April 1, 1997.