REVENUE REGULATIONS NO. 4-99 issued March 16, 1999 further amends Revenue Memorandum Order No. 6-92 relative to the payment of Capital Gains Tax and Documentary Stamp Tax on extrajudicial foreclosure sale of capital assets initiated by banks, finance and insurance companies. Where the right of redemption of the mortgagor exists, the certificate of title of the mortgagor will not be cancelled yet even if the property had already been subjected to foreclosure sale. Instead, only a brief memorandum will be annotated at the back of the certificate of title, and the cancellation of the title and the subsequent issuance of a new title in favor of the purchaser/highest bidder depends on whether the mortgagor will redeem or not the mortgaged property within one year from the issuance of the certificate of sale. Thus, no transfer of title to the highest bidder can be effected yet until and after the lapse of the one-year period from the issuance of the said certificate of sale. In case the mortgagor exercises his right of redemption within one year from the issuance of the certificate of sale, no Capital Gains Tax will be imposed because no capital gains has been derived by the mortgagor and no sale or transfer of real property was realized. In case of non-redemption, the Capital Gains Tax on the foreclosure sale shall become due based on the bid price of the highest bidder, but only upon the expiration of the one-year period of redemption, and will be paid within thirty (30) days from the expiration of the said one-year redemption period. The corresponding Documentary Stamp Tax will be levied, collected and paid by the person making, signing, issuing, accepting or transferring the real property wherever the document is made, signed, issued, accepted or transferred where the property is situated in the Philippines.