REVENUE REGULATIONS NO. 5-2009 issued on May 13, 2009 reverts the venue for the filing of returns and payment of Capital Gains Tax (CGT), Creditable Withholding Tax (CWT) and Documentary Stamp Tax (DST) due on sale, transfer or exchange of real property owned by large taxpayers to the Authorized Agent Banks (AABs) located within the Revenue District Office (RDO) having jurisdiction over the place where the property being transferred is located. In order to provide uniformity in the processing of real estate transactions of taxpayers, whether large or non-large taxpayers, and that ocular inspection of the subject real property can be performed expediently prior to the issuance of the Certificate Authorizing Registration (CAR)/Tax Clearance Certificate (TCL), the venue for the filing of tax returns and payment of the taxes due thereon (i.e. CGT/CWT/ Regular Income Tax/DST) on real properties owned by large taxpayers, including securing of CAR/TCL, is reverted to the jurisdiction of the concerned Revenue District Office (RDO) where the real property concerned is located. Within 30 days following each sale, exchange or disposition of lands and/or buildings, which are not actually used in the business of a corporation and are treated as capital assets, the CGT Return (BIR Form No. 1706) shall be filed by the seller or the buyer and payment of taxes made to an AAB located within the RDO having jurisdiction over the place where the property being transferred is located based on the gross selling price or fair market value (as determined in accordance with Section 6(E) of the Tax Code), whichever is higher, of such lands and/or buildings. The corresponding DST Return (BIR Form No. 2000-OT) shall be filed within 5 days after the close of the month when the taxable document was made, signed, accepted or transferred, and the tax due thereon shall be paid at the same time the aforesaid return is filed with the AAB having jurisdiction over the place where the property being transferred is located based on the consideration contracted to be paid for such realty or on its fair market value determined in accordance with Section 6(E) of the Tax Code, whichever is higher. CWT deducted and withheld by the withholding agent/buyer on the sale, transfer or exchange of real property classified as ordinary asset shall be paid by the withholding agent/buyer upon filing of the CWT Return (BIR Form No. 1606) with the AAB located within the RDO having jurisdiction over the place where the property being transferred is located within ten (10) days following the end of the month in which the transaction occurred subject, however, to the specific rules prescribed by Revenue Regulations (RR) No. 2-98, as amended, and the rules prescribed under the Electronic Filing and Payment System (EFPS) regulations, in case the taxpayer is an EFPS taxpayer. The corresponding DST Return (BIR Form No. 2000-OT) shall be filed within 5 days after the close of the month when the taxable document was made, signed, accepted or transferred, and the tax due thereon shall be paid at the same time the aforesaid return is filed with the AAB having jurisdiction over the place where the property being transferred is located based on the consideration contracted to be paid for such realty or on its fair market value determined in accordance with Section 6(E) of the Tax Code, whichever is higher. The abovementioned rules apply whether the seller/transferor is a large or a non-large taxpayer. Also, these rules on the venue for the filing of returns and payments of taxes due on real properties onerously disposed shall likewise apply in cases of taxable foreclosure sales. Upon presentation of the CGT Return or CWT Return and DST Return with a bank validation evidencing full payment of the CGT or the expanded CWT and DST due on the sale, transfer, barter, exchange or other disposition of real property classified as capital or ordinary asset, as the case may be, the RDO of the Revenue District Office where the property being transferred is located shall issue the corresponding CAR or TCL for the registration of the real property in favor of the transferee. In the case of sale or transfer of ordinary assets, it shall be the responsibility of the RDO issuing the CAR/TCL to notify the RDO having jurisdiction over the place of business of the seller to conduct an immediate post-audit of the Quarterly Income Tax Return and the Quarterly Value-Added Tax (VAT) Return of the seller to ensure that correct taxes (i.e. Income Tax, VAT (if applicable), and DST) have been fully paid on that sale of real properties considered as ordinary assets of the company. The provisions of RR No. 24-2002 prescribing the information to be periodically submitted by the Land Registration Authority, the Register of Deeds and the Assessor’s Office to the BIR relative to the transfers of real properties; the specific information that must be annotated, either by the RDO or the Register of Deeds, to certain documents; and the manner of issuance, recording and monitoring of the CAR, in order to ensure that all internal revenue taxes due on transfers of real property have been paid and remitted, as well as the responsibility of the Register of Deeds as provided for in the said Regulations, shall all remain valid and effective. The following rules shall apply with respect to real estate sale transactions of large taxpayers prior to the effectivity of these Regulations: a. For real estate sale transactions of large taxpayers on “cash basis” or “deferredpayment sale not on installment plan basis,” (i.e. payments in the year of sale exceed 25% of the selling price) where the CGT or expanded CWT, as well as DST returns have already been filed with and taxes due thereon, if any, have already been paid to the concerned Large Taxpayer Service (LTS) office, the corresponding CAR/TCL shall remain to be processed and issued by the said LTS office even upon issuance of these Regulations. b. For real estate sale transactions of large taxpayers on “installment basis,” (i.e. payments in the year of sale do not exceed 25% of the selling price): i. Where there is already full payment of the full consideration of the real property bought under installment basis, and the corresponding returns have already been filed and taxes due thereon, if any, have already been fully paid to the concerned LTS office, the corresponding CAR/TCL shall remain to be processed and issued by the said LTS office even upon issuance of these Regulations. ii. Where there is no full payment yet of the full consideration of the real property bought under installment basis as of the effectivity of these Regulations, the remaining installment payment of taxes due as of the effectivity shall begin to accrue to the RDO where the property is located, which shall be responsible for processing and issuing the TCL/CAR. Pertinent documents submitted as well as tax returns relative to prior tax payments made to the concerned LTS office shall then be endorsed by said concerned LTS office to the RDO where the property is located, which shall consolidate the same with those filed with and paid to its District Office, for purposes of determining whether there has been full payment of the taxes due and full compliance with the documentary requirements laid down by law and regulations prior to the issuance of the CAR/TCL.