Revenue Regulations No. 12-2024 – Validity of BIR eCAR Philippines

Amending Section 5 and 6 of Revenue Regulations (RR) No. 3-2019, on the Validity of Certificate Authorizing Registration (eCAR) and its Revalidation

Section 1. Background

The Certificate Authorizing Registration (CAR) being issued by the Bureau of Internal Revenue (BIR) allows the Land Registration Authority (LRA) to transfer. The CAR is issued by the BIR as a proof that the transfer of property was reported and that all necessary taxes were paid in full by the taxpayer.

BIR is currently issuing Electronic CAR (eCAR) wtih a validity period of five (5) year validity period. The eCAR has an embedded barcode, which is being used by the Land Registration Authority System (LRA-PHILARIS-RD System) to validate the pertinent data needed to proceed with the processing and issuance of a new property title.

However, not all eCARS issued by the BIR are presented within the five (5) year validity period, thus concerned parties have to request for the reissuance of the eCAR, thereby resulting to additional cost on the part of the taxpayer and work load on the part of the processing office. This is the reason why the current provisions of RR No. 3-2019 issued on March 28, 2019 relative to eCAR’s validity is amended to remove the five (5) year validity of eCAR.

Section 2 Scope. –

Pursuant to the provisions of Section 244 in relation to Sections 58(E), 95 and 97 of the National Internal Revenue Code of 1997, as amended, these Regulations are hereby promulgated in order to amend pertinent provisions of RR No. 3-2019, which prescribed the use of eCAR System.

Section 3. Amendments
Section 5 and 6 of RR No. 3-2019 are hereby amended as follows:

“SEC. 5 – Validity of eCAR – The eCAR shall be valid from the date of its issuance until such time that it is presented to the corncerned Registry of Deeds (RD).”
“SEC. 6 – Revalidation – Only CARs issued outside of the BIR’s eCAR system, if any, shall be allowed for revalidation.

Section 4. Transitory Provisions
All eCARs issued through the BIR’s eCAR System which is linked to the LRA PHILARIS-RD System shall remain to be valid and will no longer require revalidation even if the same is presented to the RD beyond the specified validity period.

By: Tax and Accounting Center Philippines

Bureau of Internal Revenue issued Revenue Memorandum Circular No. 40-2014 dated 12 May 2014 entitled “Prescribing the Use of Electronic Certificate Authorizing Registration (BIR Form No. 2313-R For Transactions Involving Transfer of Real Properties and BIR Form No. 2313-P for Transactions Involving Transfers of Personal Properties”.

Under BIR Revenue Memorandum Circular No. 40-2014 (RMC 40-14), manual issuance of Certificate Authorizing Registration (CAR) in the Philippines shall be discontinued upon the rollout of Electronic Certificate Authoring Registration (eCAR) System in the Revenue District Offices (RDOs) / Large Taxpayers (LTs) / Audit Division. Hereunder are the features of the new CAR:

eCAR Philippines an accountable form

eCARs in the Philippines for BIR Form No. 2313-R For Transactions Involving Transfer of Real Properties and BIR Form No. 2313-P for Transactions Involving Transfers of Personal Properties is now treated as an accountable form of the Bureau of Internal Revenue as such its issuance is strictly monitored.

eCAR Philippines with security features

eCAR in the Philippines will be printed in security paper with enhanced security features and bar code. Contents of the eCAR would be the same information in the manual CAR in the Philippines.  As clarified in RMC No. 42-2014 dated 19 May 2014, details on the body or contents may vary depending on the nature and circumstances surrounding the transactions and the applicable taxes.

eCAR Philippines for each property

Under the eCAR System in the Philippines , one eCAR covering one real property shall be issued and as such, there would be as many eCAR as there are real properties to be transferred. Each of such eCAR shall then be used by the Registry of Deeds in the Philippines for the transfer of title to such properties such as transfer certificate of title (TCT), condominium certificate of title (CCT), or original certificate of title (OCT).

With respect to eCAR for personal properties like shares of stock, one eCAR in the Philippines may be issued covering the transfer of more than one (1) personal properties. Accordingly, this shall be used by the Corporate Secretary or transfer agent of the issuing corporations share as the basis for the transfer of shares in the stock and transfer book of such issuing corporation.

Manual CAR Philippines validity

Manually issued Certificate of Registration (CAR) in the Philippines issued within one (1) year from the roll out of the eCAR in the Philippines shall remain to be valid and binding for presentation of the taxpayer to the Registry of Deeds.  For the purpose, the RDO shall furnish the Registry of Deeds Philippines with a list of manually issued CAR.

eCAR Initial implementation in RR No. 1

Initially, the eCAR was rolled out last 19 May 2014 in Revenue District Offices (RDOs) under Revenue Region no. 1 – Calasio, Pangasinan. The BIR shall further announce the roll out of eCAR in the Philippines in other BIR offices and such other BIR offices will continue to issue manual CAR.

Summary

Please be guided with the above new automated system of the BIR aimed towards strengthening internal control toward data integrity. With the security features, extra effort should be exerted to see to it that the eCAR you have received is genuine to see to it that it is valid and binding for the transfer of real property with the Registry of Deeds or for transfer of shares for the Corporate Secretary or transfer agent.

References:

• Revenue Memorandum Circular No. 40-2014 with Annex A – BIR Form No. 2313-R, and Annex B-BIR Form No. 2313-P ;
• Revenue Memorandum Circular No. 42-2014;

Disclaimer: This article is for general conceptual guidance only and is not a substitute for an expert opinion. Please consult your preferred tax and/or legal consultant for the specific details applicable to your circumstances.