BIR clarifies the jurisdiction for the issuance of eCAR

Through Revenue Memorandum Circular (RMC) 56-2024 issued on April 17, 2024, the BIR  issued a clarification on the concerns regarding the processing and issuance of the Electronic Certificate Authorizing Registration (eCAR) pertaining to One-Time Transaction (ONETT) which is secured in every transaction involving the transfer of real and personal properties.

The circular was made following the provisions of Republic Act No. 11976, otherwise known as the Ease of Paying Taxes (EOPT) Act, which states that “the filing of any tax return shall now be made electronically in any of the available platforms[e.g., Electronic Filing and Payment System, eBIR Forms Facility, tax returns filing application/solutions of Authorized Taxpayer Service Providers (ATSPs)], while the payment of tax due thereon can either be made electronically or manually through any Authorized Agent Banks (AABs), Revenue Collection Officers (RCOs), regardless of where the taxpayer is registered.". 

Since taxpayers are now allowed to file and pay taxes electronically or manually at any Authorized Agent Bank (AAB) or Revenue Collection Office (RCO) regardless of which RDO they are registered, there were concerns raised on which RDO will process and issue the eCAR.

Venues for processing eCAR

The main portion of this RMC clarifies that the venue for which the processing and issuance of eCAR, regardless of where the tax return and the tax payments were made, shall still be at the RDO that has jurisdiction over the ONETT, as follows:

1.       Sales of real property – RDO which has jurisdiction over the location of the property subject of sale;

2.      Sale of personal property – RDO which has jurisdiction over the residence of the seller;

3.     Donation – RDO which has jurisdiction over the residence of the donor (individual)/ RDO where the donor is registered (non-individual); and

4.      Estate – RDO which has jurisdiction over the issued Taxpayer Identification Number (TIN) of the Estate of the Decedent.

The BIR also notes that if the decedent has a registered business, then the application for eCAR shall be processed by the RDO where the business is registered since it is where the TIN for the decedent will also be secured following existing policy. In case the decedent has no registered business, the TIN may be secured from the RDO where the administrator or heirs intend to apply for the issuance of eCAR.

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