Assistance in BIR Certificate Authorizing Registration (CAR) for Real PropertyA Certificate Authorizing Registration is a legal document that serves as a tax clearance for the transfer of certificate of title or condominium certificate of title of property. The application for a CAR is a mandatory requirement to prove that taxes due of the property are already paid for before selling.
When and where do I file for an issuance of the CAR?
The application for a CAR certificate is filed electronically through the eCAR registration at the Bureau of Internal Revenue, where the period of its issuance may take fifteen (15) to thirty (30) days upon its application.
Who is the officer-in-charge that releases the CAR?
The designated Revenue District Officer (RDO) where the property is located shall release the CAR certificate requested by the taxpayer. The RDO has the right to not allow any transfer of title when the eCAR certificate is not validated by the BIR.
What happens to my manually applied CAR certificate?
Any CAR certificates that were manually issued before the execution of R.R. 3-2019 shall be subject to revalidation by the BIR. Any submission of manual CAR certificates shall not be accepted by the RDO as manual CAR certificates are to be deemed expired unless revalidated. Manual CAR certificates are to be replaced with the new issued eCAR certificates upon revalidation.
How long is the validity of the eCAR?
The validity of an eCAR certificate is five (5) consecutive years from the date of its issuance. Once the validity period lapses, the eCAR certificate shall have no effect with future transfer of certificate of title or condominium certificate of title transfers, thus a new eCAR certificate is needed.
What are the Basic Requirements for the application of the eCAR?
The basic requirements to be submitted to secure an eCAR certificate are the following:
- Certified True Copy of the Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT)
- Certified True Copy of the Latest Tax Declaration
- Property Sketch Location (if applicable)
- Original Deed of Conveyance/Deed of Sale with Special Power of Attorney (SPA)
- BIR Form No. 2000 (ONETT) – Documentary Stamp Tax Return
- Capital Gains Tax Return (if applicable)
- Proof of Withholding Tax (if ordinary asset)
- Certification Fee of PhP 100
For registered and unregistered land/real property, how shall the eCAR be issued?
- For registered land/real property:
The eCAR certificate shall be issued per title of the property to be transferred. Only one (1) eCAR certificate shall be issued despite separate tax declarations.
- For unregistered land/real property:
Unlike with registered land, the eCAR certificate for unregistered land shall be issued per tax declaration covering the improvements on the land.
Am I subject to penalties if I do not have a CAR certificate?
Yes. One of the most common penalties received are fines, compromise penalties and interests issued depending on the value of the property at question. Surcharges ranging from 25% - 50% may arise when subject to fraudulent acts.
This is not a penalty per se but without the eCAR certificate, it will render the transfer of the transfer of certificate of title or condominium certificate of title to the new owner difficult or nearly impossible.
I am a foreign national; am I eligible to secure a CAR certificate?
As a foreign national, no you are not eligible to secure an eCAR certificate for land, as only Filipino citizens are allowed and are eligible to attain such a document. Unless, you are a qualified foreigner allowed to own land in the Philippines. See further discussion under this link.
You may however secure an eCAR for an improvement or building but with no land attached.
Am I subject to pay Capital Gains Tax (CGT) when selling and transferring the title of my property?
Yes. It is a mandatory requirement to take care and pay the issuance of your Capital Gains Tax (CGT) of the property you are about to sell. The reason behind this is that the CGT issuance is a main requirement when applying for an eCAR certificate.
You may also view our preceding BIR CAR process to learn more about it. Should you need help or assistance in the processing of the necessary requirements for BIR CAR, you may contact us at info@filedocsphil.com or +63.977.241.5709.