29/09/2026
⚖️ PROPERTY TRANSFERS: IMPORTANT BIR RULES ON ONETT, eCAR, TAXES AND DOCUMENTS
rMC No. 75-2026 | July 8, 2026
Buying, selling, donating, or inheriting property involves more than simply paying the tax and presenting a deed.
The BIR has consolidated important rules governing the ONETT Computation Sheet or OCS and Electronic Certificate Authorizing Registration or eCAR, including applicable taxes, deadlines, documentary requirements, processing offices, processing periods, and special transaction rules.
📌 PART I: WHAT TRANSACTIONS ARE COVERED?
RMC No. 75-2026 covers major one time transactions such as:
1. Sale of real property classified as a capital asset
2. Sale, transfer, or assignment of unlisted shares
3. Sale of real property classified as an ordinary asset
4. Donation of property
5. Transfer of property through a decedent’s estate
The applicable taxes may include CGT, CWT, donor’s tax, estate tax, VAT, and DST depending on the nature of the transaction.
📌 PART II: IMPORTANT FILING AND PROCESSING RULES
1. Electronic filing is generally required.
ONETT related returns are generally filed electronically under the Ease of Paying Taxes framework. Manual filing may be allowed when the relevant BIR electronic system is unavailable.
2. Complete documents are essential.
Incomplete OCS or eCAR applications are not processed as complete applications. The processing period starts only after complete documentary requirements and proof of payment are submitted.
3. Proper RDO jurisdiction still matters.
The proper BIR office depends on the nature of the transaction and the property involved. Filing or paying elsewhere does not necessarily change the office that must process the eCAR.
4. TINs must be secured for the relevant parties.
Depending on the transaction, this may include the seller, buyer, donor, donee, estate, heirs, or administrator.
📌 PART III: HOW LONG SHOULD OCS AND eCAR PROCESSING TAKE?
Under the BIR processing classifications:
Simple transactions
• OCS: 3 working days
• eCAR: 7 working days
Complex transactions
• OCS: 7 working days
• eCAR: 7 working days
Estate transactions
• OCS: 20 working days
• eCAR: 7 working days
A transaction is generally classified as simple or complex depending on factors such as the number of properties or shares and whether ocular inspection is required. Estate transactions are treated as highly technical.
📌 PART IV: OLD CARs AND EXISTING eCARs
One of the most important practical clarifications concerns old certificates.
Manually issued CARs that have not yet been presented to the Registry of Deeds are no longer valid.
They must be replaced by an eCAR through the BIR office that processed the original CAR.
By contrast, previously issued eCARs generated through the BIR eCAR system linked to LRA PHILARIS remain valid and do not require revalidation.
📌 PART V: IMPORTANT TAX CLARIFICATIONS
1. Buyer paid capital gains tax
If the deed provides that the buyer will shoulder the seller’s CGT, RMC No. 75-2026 clarifies that the CGT paid by the buyer is not added to the selling price in determining the CGT tax base.
The applicable valuation rule still governs the tax base.
2. Real property valuation
For CGT and DST, the tax base is generally determined using the higher applicable amount among the consideration and the relevant fair market or zonal valuation prescribed by law.
3. Renunciation of inheritance
A general renunciation of inheritance is generally not subject to donor’s tax.
However, a partial renunciation or waiver in favor of identified heirs may result in donor’s tax and, where applicable, DST consequences.
4. Deficiency payments
Additional tax based on the approved OCS should generally be paid using the applicable ONETT tax return.
Deficiency tax assessed after eCAR issuance is paid using BIR Form No. 0605.
5. Unpaid VAT does not necessarily block eCAR issuance
The Circular also clarifies that eCAR issuance should not be withheld solely because VAT remains unpaid on the transaction, subject to the applicable assessment and collection rules.
💡 WHAT TAXPAYERS SHOULD DO
1. Classify the transaction correctly before preparing the tax returns.
2. Secure the required TINs before filing the ONETT application.
3. Complete the documentary checklist before submitting the OCS request.
4. Determine the correct RDO before filing.
5. Review old manual CARs that have never been presented to the Registry of Deeds.
6. Check the deed carefully if the buyer will shoulder CGT or other taxes.
7. Document inheritance waivers precisely, because a general renunciation and a waiver in favor of specific heirs may have different tax consequences.
⚖️ BOTTOM LINE
The most important lesson from RMC No. 75-2026 is that property transfers should be planned before the documents reach the BIR.
The correct tax classification, proper RDO, complete documents, valid eCAR, valuation, and wording of the deed or inheritance waiver can materially affect both the tax liability and the speed of title transfer.
Official Source: Bureau of Internal Revenue, Revenue Memorandum Circular No. 75-2026, July 8, 2026.
