RR No. 4-2008: Amends the venue for filing of tax returns and payment of Capital Gains Tax, Creditable Withholding Tax and Documentary Stamp Taxes due on onerous transfers of real propertis owned by taxpayers classified as large taxpayers

Key points

1. New venue and CAR issuance. Where the seller is a large taxpayer, filing, payment and securing the TCL/CAR move to the Large Taxpayers Service (LTS) office where its head office is registered. Returns are filed with the AAB of that LTS office. For non-large taxpayer sellers, the RDO where the property is located remains the venue.
2. Capital Gains Tax and DST. The CGT return (BIR Form No. 1706) is filed within 30 days after each sale or disposition. The DST return is filed within five (5) days after the close of the month when the taxable document was made, signed, accepted or transferred. The same venue rule applies to taxable foreclosure sales.
3. Creditable Withholding Tax. On ordinary asset sales, the buyer pays CWT upon filing the return (BIR Form 1606) within ten (10) days after the month of the transaction, subject to EFPS rules where applicable. The DST return for these is Form No. 2000-OT.
4. Joint venture projects. Where one co-venturer is a large taxpayer and the other is not, each follows its own venue for units allocated to it. The large taxpayer files with its LTS office and the non-large co-venturer files with the AAB of the RDO where the property is located.
5. Ocular inspection. For large taxpayer sellers, the LTS office issues the TCL/CAR and inspects properties in Metro Manila or Metro Cebu, with no RDO countersignature needed. Outside those areas, EXTA personnel inspect where available. Otherwise the CAR is issued first and the RDO countersigns within five (5) days from receipt.
6. Transactions before effectivity. Cash or deferred-payment sales already filed and paid at the RDO stay with the RDO for the TCL/CAR. For installment sales not yet fully paid at effectivity, the remaining tax accrues to the LTS office, which issues the TCL/CAR.

Who is affected

• Large taxpayers selling real property
• Buyers and withholding agents on those sales
• Co-venturers in joint venture real estate projects

Deadlines and effectivity

• CGT return: within 30 days following each sale or disposition
• DST return: within 5 days after the close of the month
• CWT return: within 10 days following the end of the month
• RDO countersignature of CAR: within 5 days from receipt