Request that Payment be Made with BIR-Quezon City or BIR-Puerto Princesa of Documentary Stamp Taxes and Expanded Creditable Withholding Taxes on the Sale of a Real Property

January 22, 1997 BIR RULING NO. 007-97 173 000 007-97 Atty. Biddy Tiu Tan Quezon City S i r : This refers to your letter dated January 6, 1997 requesting for a ruling to effect payment with BIR-Quezon City or BIR-Puerto Princesa of documentary stamp taxes and expanded creditable withholding taxes on the sale of a real property. It is represented that the real property subject of the sale is a vacant parcel of land situated in Puerto Princesa City registered under Transfer Certificate of Title No. 15672; that the seller holds office at Puerto Princesa City; and the buyer holds residence and office at 75 Kitanlad Street, Quezon City. In reply, please be informed that Section 173 of the Tax Code in relation to Section 3.1 of Revenue Memorandum Circular No. 44-86 requires that documentary stamp taxes shall be paid at the time the "act is done or the transactions is had" through the Revenue District Office having jurisdiction over the locality where the real property sold or disposed is located. Moreover, Section 5(a) of Revenue Regulations No. 6-85, as amended by Revenue Regulations 12-94, implementing Section 50 (b) of the Tax Code, as amended, in relation to Section 2 of Revenue Memorandum Circular No. 80-89 mandates the withholding agent to remit within ten (10) days after the end of each month the expanded creditable withholding taxes through the Revenue District Office where the withholding agent has his principal place of business except in cases where the Commissioner of Internal Revenue allows otherwise. Finally, Revenue Regulations No. 11-96 requires that the Tax Clearance Certificate (TCL) is to be issued by the Revenue District Office where the seller is registered. Based on the above and given the time constraints, the taxpayer has to remit the documentary stamp taxes through Revenue District Office No. 36, Puerto Princesa City, and the expanded creditable withholding taxes through Revenue District Office No. 39, Quezon City, and then to secure the TCL from Revenue District Office No. 36, Puerto Princesa City. For expediency, this Office hereby instructs Revenue District Office No. 36, Revenue Region No. 6, Puerto Princesa City to accept payment of both documentary stamp taxes and expanded creditable withholding taxes on the sale of the mentioned real property and thereafter to issue the corresponding Tax Clearance Certificate authorizing registration of the subject real property with the Register of Deeds for Puerto Princesa City. aisadc Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue