BIR scraps 5-year validity of eCAR

MANILA, Philippines — The Bureau of Internal Revenue (BIR) has removed the five-year validity of the electronic certificate authorizing registration (eCAR) needed for various kinds of property transfers.

In its recent revenue regulation, the BIR said eCAR is now valid until presented to the Registry of Deeds of the Land Registration Authority.

As such, only CARs issued outside of the eCAR system will be allowed for revalidation.

“We have removed the five-year validity period for the benefit of taxpayers,” BIR Commissioner Romeo Lumagui said.

“The BIR will be a service-oriented agency, not merely a collection-oriented one. Whatever we can do to help ease the burden of our taxpayers in paying their taxes, we will implement,” he said.

The transfer of real and personal properties whether from sale, donation or other mode, including shares of stock, in the Philippines will not be registered to the new owner in the absence of a CAR issued by the BIR.

A CAR certifies that taxes applicable to the transfer of registrable property have been reported and paid.

The BIR in April 2019 prescribed the use of the electronic version of the CAR via the eCAR which used to have a validity period of five years.

“However, not all eCARs are presented within the validity period, the taxpayers then have to request for the reissuance of the eCAR,” Lumagui said.

“This is an unnecessary burden to taxpayers. The eCAR will now be valid until its presentation to the concerned revenue district,” he said.