REVENUE MEMORANDUM CIRCULAR (RMC) No. 75-2026
This circular is hereby issued to address frequently asked questions relative to the application and processing of OCS and eCAR.
ONETT Transactions, Taxes, Filing, and Processing Office
• What type of taxes are associated with ONETT, the deadlines for their payment and the corresponding Bureau of Internal Revenue (BIR) forms to be used in filing their tax returns?
| Type of ONETT Transaction | Taxes Due | Deadline for Payment | BIR Form |
| Sale of Real Property (Capital Asset) | Capital Gains Tax (CGT) and Documentary Stamp Tax (DST) | CGT: Within 30 days from notarization of the Deed of Absolute Sale (DOAS). DST: Within 5 days after the close of the month when the DOAS was notarized. | CGT: BIR Form 1706 DST: BIR Form 2000-OT |
| Sale/Transfer/Assignment of Stocks (Not Traded in the Stock Exchange) | CGT and DST | CGT: Within 30 days from notarization of the DOAS. DST: Within 5 days after the close of the month when the DOAS was notarized. | CGT: BIR Form 1707 DST: BIR Form 2000-OT |
| Sale of Real Property (Ordinary Asset) | Creditable Withholding Tax (CWT) and DST | Cash Sale: CWT due on the 10th day of the following month after notarization. For Installment Sales: If the buyer is not engaged in trade or business – CWT due shall be filed and paid upon payment of the last installment. If the buyer is engaged in trade or business – CWT due shall be filed and paid with each installment. DST: Within 5 days after the close of the month of notarization. | CWT: BIR Form 1606 DST: BIR Form 2000-OT |
| Donation of Property | Donor’s Tax and DST | Donor’s Tax: Within 30 days from notarization of the Deed of Donation (DOD). DST: Within 5 days after the close of the month when the DOD was notarized. | Donor’s Tax: BIR Form 1800 DST: BIR Form 2000-OT |
| Transfer of Property Through Estate | Estate Tax | Within 1 year from the date of death of the decedent. | Estate Tax: BIR Form 1801 |
• What are the modes of filing and payment of ONETT – related tax dues?
In line with Republic Act (RA) No. 11976, otherwise known as the Ease of Paying Taxes (EOPT) Act, filing of any tax return shall now be made electronically unless unavailable, where manual filing is allowed.
Moreso, taxpayers enrolled in the Electronic Filing and Payment System (EFPS) shall pay the tax due using the said system. In the case of manual payment, these can be done using any Authorized Agent Banks (AABs).
Processing and issuance of eCAR shall remain with the Revenue District Office (RDO) having jurisdiction over the ONETT transaction, summarized as follows, regardless of where the tax return was filed or taxes were paid.
| Type of ONETT | eCAR Processing Office |
| Sale of Real Property (either classified as a “capital” or “ordinary” asset) | RDO which has jurisdiction over the location of the property subject of sale |
| Sale, Transfer or Assignment of Stocks Not Traded in the Stock Exchange | RDO which has jurisdiction over the residence of the seller/transferor (individual) as indicated in the existing taxpayer registration system of the BIR / where the seller is registered (non-individual) |
| Donation | RDO which has jurisdiction over the residence of the donor (individual) as indicated in the existing taxpayer registration system of the BIR/where the donor is registered (non-individual) |
| Estate | RDO which has jurisdiction over the issued TIN of the Estate of the Decedent If the decedent has registered business – RDO where the business is registered (where TIN shall likewise be secured pursuant to existing policy) If the decedent has no registered business – TIN may be secured from the RDO where the administrator or heirs intend to apply for eCar. |
Antedated Documents, Documentary Requirements, TINs, and Representatives
• When is a “Deed of Sale or a similar document” considered as Antedated Sale?
The BIR explains when a Deed of Sale or similar transfer document may be considered antedated in the following instances:
- Documents dated before September 7, 1979, the date of effectivity of Batas Pambansa (BP) Blg. 37 or the Capital Gains Tax Law;
- Documents dated before the effectivity of the regulations imposing the CWT on sales or transfers real property; and
- Documents dated before the effectivity of the current zonal values as reflected in the latest Revised Schedules of Zonal Values of Real Properties within the jurisdiction of the concerned R.D.O.
Taxpayers may provide supporting evidence such as cancelled checks, invoices, Contracts to Sell, or certifications from appropriate government offices. The Circular also clarifies the requirement for original and/or certified true copies of documents and provides that incomplete OCS or eCAR applications will not be accepted. Taxpayers will instead be informed of the missing requirements through the Checklist of Documentary Requirements or the eONETT dashboard. TINs are required for the parties involved in the transaction, with specific rules for sales, donations, and estates. The spouse’s TIN is unnecessary unless the spouse is a party to the transaction or the property is conjugal/community property. Authorized representatives must present the appropriate authority, such as a notarized SPA for individuals or a Board Resolution/Secretary’s Certificate for non-individual taxpayers.
OCS/eCAR Processing, Approval, and Validity
• What are the prescribed processing times for BIR services that are covered by BIR Citizen’s Charter?
ONETT transactions are classified as simple, complex, or highly technical. Simple transactions involve three or fewer properties or types of shares and do not require ocular inspection, while complex transactions involve more than three properties/types of shares or require ocular inspection. Estate tax transactions are classified as highly technical. The processing period begins on the next working day after complete documentary requirements and applicable proof of payment have been received.
| Transaction | Classification | OCS | eCAR |
| Transfer of Real Property / Shares of Stocks | Simple | 3 working days | 7 working days |
| Complex | 7 working days | 7 working days | |
| Donation of Property | Simple | 3 working days | 7 working days |
| Complex | 7 working days | 7 working days | |
| Estate Tax | Highly Technical | 20 working days | 7 working days |
This Circular also identifies the authorized signatories for eCARs which is either the Revenue District Officer (RDO) or the Assistant Revenue District Officer (ARDO). Manually issued CARs that have not yet been presented to the Registry of Deeds (RD) are no longer valid and must be replaced with eCARs. Moreover, all eCARs issued through the BIR’s eCAR system shall remain to be valid and will no longer require validation to the RD. This Circular also provides procedures for reprinting an eCAR when the original has been lost.
Furthermore, the eCAR must be released to the subject taxpayer even if there is no proof that the VAT due on such sale has been paid.
Property Classification, Valuation, and Applicable Taxes
This Circular further clarifies that real properties acquired by banks through foreclosure sale and real properties of a real estate lessor which are for lease/rent or being offered for lease/rent, or otherwise for use or used in the trade or business are considered as their ordinary assets.
For Capital Gains Tax (CGT) and Documentary Stamp Tax (DST), the tax base is generally the highest applicable value among the selling price/consideration and the relevant valuation such as Fair Market Value (FMV) and the zonal value as determined by the CIR, except in government sale transactions where the DST is based on consideration paid. Moreover, in case of installment contracts, DST shall accrue upon the execution of the DOAs.
This Circular further clarifies the applicable taxes for the following transfer properties.
| Transfer of Property | Applicable Taxes |
| Dacion en Pago – Transfer by debtor in favor of creditor | CWT, VAT and DST |
| Transfer of real properties classified as capital asset by debtor the creditor in settlement of debt | CGT and DST |
| Foreclosure Sale 1. Judicial Foreclosure 2. Extrajudicial foreclosure In cases: – Where the mortgagor is a juridical person and the mortgagee is a bank – Where the property is an ordinary asset of the mortgagor | CGT and DST CGT and DST CGT and DST CWT and DST |
The BIR emphasizes the importance of the classification appearing in the Tax Declaration and clarifies that taxpayers cannot simply rely on the property’s actual use or the surrounding properties to change its classification for tax purposes. This Circular also addressed when an ocular inspection may be required, particularly when there is a conflict regarding property improvements or when a taxpayer invokes a special tax treatment. In all cases, the ocular inspection shall be done within the processing period; thus, should not be the cause of the delay in the issuance of eCAR as prescribed.
Sale or Transfer of Unlisted Shares of Stock
- What is the basis for imposing the DST on the sale of no-par value shares?
For no par value shares, DST shall be equivalent to fifty percent (50%) of the DST paid upon the original issue of said stock.
For unlisted preferred shares, FMV is based on liquidation value, essentially the redemption price nearest the transaction date, including applicable premium and cumulative preferred dividends in arrears.
In cases of installment payment of CGT for onerous transfer of unlisted shares, an eCAR for the identified shares of stock shall be issued upon presentation of proof of payment of taxes relative to the installment payment made.
Waiver/Remuneration of Inheritance and Deductions from Gross Estate
- Is waiver/remuneration of an heir on his/her share from the inheritance subject to Donor’s Tax? How about the partial waiver/remuneration of inheritance?
Under RMC No. 94-2021, a general renunciation of heirs on their share from their inheritance is not subject to Donor’s Tax. However, a partial renunciation of inheritance will be subject to Donor’s Tax for the value foregone as a result of such waiver/renunciation.
In the case of an estate with waiver of rights, the Donor’s Tax return shall be filed in the RDO processing the Estate tax return. Moreover, in the case of an estate with partial renunciation, the applicable DST on the property donated shall also be computed.
- When can an estate claim the “Family Home” as deduction from the gross estate?
The following requirements must be met before the “Family Home” can be allowed as deduction:
- The value of the Family Home is included in the gross estate of the decedent;
- The title is in the name of the decedent or if conjugal or inherited property, only the decedent’s share from the value of the family home shall be considered;
- It is the residence of the decedent as certified by the Barangay Captain of the locality; and
- If the value of the Family Home as included in the gross estate exceeds the threshold amount, the deduction shall only be up to the extent of the threshold amount applicable at the time of death.
In cases where a real property not fully paid formed part of a decedent’s estate, any claims against the estate can be deducted provided it satisfies the legal requisites for deductibility.
- Is the closure of the decedent’s business with the BIR required prior to the filing of the estate tax return?
The estate tax return can be filed whether the business registration has been closed or not. Moreso, the issuance of TIN of the estate shall not be contingent on the cancellation of the TIN of the decedent with business. The Estate of a deceased person shall be issued a TIN separate and distinct from the TIN of the deceased person.
This Circular further enumerated appropriate tax return forms should additional tax be paid based on the approved ONETT Computation Sheet. However, should deficiency taxes be found due after the eCAR has been released, BIR Form No. 0605 shall be used accordingly.