Tax Notes: BIR clarifies issuance of eCAR relative to Onett

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With the passage of the Ease of Paying Taxes Act, taxpayers can now enjoy the “file and pay anywhere” scheme, wherein the filing and payment of internal revenue taxes can now be made to any revenue district offices, authorized agent banks, or authorized tax software provider. However, the same raises certain concerns regarding the processing of electronic Certificate Authorizing Registration (eCAR) relative to One-Time Transaction (Onett). Pursuant to existing policy, tax payments related to Onett are required to be made with Accredited Agent Banks/Revenue Collection Officers (AABs/RCOs) under the jurisdiction of the Revenue District Office (RDO) responsible for processing and authorizing eCARs.

In light of the foregoing, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) 56-2024 to clarify that the venue for the processing and issuance of eCAR shall remain under the RDO with jurisdiction over Onett, particularly:

a. Sale of real property – under the RDO, which has jurisdiction over the location of the property;

b. Sale of personal property – under the RDO, which has jurisdiction over the residence of the seller;

c. Donation – under the RDO, which has jurisdiction over the residence of the donor for individual taxpayers and under the RDO, where the donor is registered for juridical persons; and

d. Estate – under the RDO, which has jurisdiction over the Taxpayer Identification Number (TIN) of the Estate of the Decedent. Nonetheless, if the decedent operated a registered business, eCAR processing shall be under the RDO where the business is registered, consistent with the existing TIN issuance policy. In the absence of business registration, the TIN may be acquired from the RDO where the administrator or heirs intend to apply for eCAR issuance.

Furthermore, taxpayers in need of assistance from the BIR in the computation of taxes pertaining to Onett are encouraged to coordinate with the relevant RDO, as specified, to obtain an approved Onett Computation Sheet, which serves as the basis for subsequent tax return filings.

Moreover, taxpayers may opt to utilize the electronic One-Time Transaction (eOnett) system for the application of eCAR issuance. This system is accessible anytime and anywhere, subject to internet connection availability.

Please be guided accordingly.

Source:

P&A Grant Thornton

Certified Public Accountants

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