RR No. 14-2000: Amends Section 3(2), 3 and 6 of RR No. 13-99 relative to the sale, exchange or disposition by a natural person of his “principal residence”

Key points

1. Residential address. The residential address in the vendor/transferor’s latest income tax return before the date of sale is a conclusive presumption of his true address. This holds despite a contrary certification from the Barangay Chairman or Building Administrator (for a condominium unit), under the doctrine of admission against interest or the principle of estoppel.
2. Basis for CAR or TCC. Compliance with the preliminary conditions for exemption from the 6% capital gains tax under Sec. 3(1) and (2) of the Regulations is enough for the RDO to approve and issue the Certificate Authorizing Registration (CAR) or Tax Clearance Certificate (TCC).
3. Wording of the CAR or TCC. It must state that the sale is exempt from capital gains tax under Sec. 24 (D)(2) of the Tax Code. The exemption remains subject to the post-reporting requirements under Sec. 3(3) of the Regulations.

Who is affected

• Natural persons selling, exchanging or disposing of a principal residence