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RR No. 22-2002: Prescribes the rules in the sale or disposition of real estate obtained by the government in payment of taxes, penalties or costs arising under Section 216 of the Tax Code

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Summary

RR No. 22-2002 prescribes rules for selling or disposing of real estate obtained by the government in payment of taxes, penalties or costs under Section 216 of the Tax Code.

Key points

  1. Sale by sealed bids. Properties transferred in the name of the Republic of the Philippines that have passed the one-year redemption period are converted into cash. They are sold by sealed bids in a public auction witnessed by a representative from the Commission on Audit.
  2. Floor price. Unless the Commissioner of Internal Revenue provides otherwise, the minimum bid price is the latest fair market value determined by the CIR or the value in the latest tax declaration of the assessor, whichever is higher.
  3. Bond. Bidders post a bond in cash or manager’s check of ten percent (10%) of the minimum bid price at least one (1) day before the auction.
  4. Who may bid. Anyone may bid, except foreign nationals, corporate or otherwise, and those disqualified under existing laws, rules and regulations, including employees of the Bureau of Internal Revenue.
  5. Negotiated sale. A negotiated or private sale is used after public bidding fails two (2) consecutive times.

Who is affected

  • Bidders for real estate obtained by the government under Section 216 of the Tax Code

Deadlines and effectivity

  • Bond posted at least one (1) day before the auction

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.