Request for the Issuance of a Certificate Authorizing Registration (CAR)

January 17, 1991 BIR RULING NO. 008-91 50 (B) 1990 008-91 Gentlemen : This refers to your letter dated October 17, 1990 stating that you are up to the present still selling lots in your subdivision known as BF Homes-Caloocan, Phase III, which you developed jointly with BF Homes, Inc. last July 28, 1961; that this Office implemented a new requirement in transferring the Transfer Certificate of Title to third party under Revenue Memorandum Circular No. 16-90 which requires the lot buyers to present a Certificate of Registration and License to Sell for them to be entitled to the withholding tax rate of 0% or 2.5%; that since BF Homes, Inc. is your developer, you furnish your buyer a photocopy of your developer's Certificate of Registration and License to Sell; that this Office, however, dishonored and disapproved the transfer requesting you instead to present a Certificate of Registration and License to Sell under your name; that as a consequence, you inquired from the Housing and Land Use Regulatory Board (HLURB) regarding your Certificate of Registration and License to Sell; and that you were informed by the Program Director of said Office, Mr. William Jasarino, that once a project is registered in the name of a certain entity it can no longer be re-registered in the name of another. cdti Based on the foregoing representations, you now in effect request a ruling considering the Certificate of Registration and License to Sell under the name of your developer, BF Homes, Inc., in the issuance of this Office of the required Certificate Authorizing Registration (CAR) relative to the lots sold in your property located at BF Homes-Caloocan Phase III to enable your lot buyers to transfer the same. In reply, please be informed that under paragraph Nos. 2 and 3 of Revenue Memorandum Circular No. 16-90 dated February 16, 1990 modifying Revenue Memorandum Circular No. 7-90 dated January 16, 1990 clarifying some pertinent provisions of Revenue Regulations No. 12-89, as amended by Revenue Regulations No. 1-90 implementing Section 50(b) of the Tax Code, as amended, all sales, exchanges or transfers of real property (subject to creditable withholding tax) on or after March 1, 1990 shall be subject to zero (0%) percent, regardless of the law under which the project is registered, provided that the consideration does not exceed P500,000.00. In other words, it is the selling price or consideration (and not the law under which a project was approved) that determines whether or not a transaction is socialized/low cost in nature. To be entitled to the lower withholding tax rates of 0% or 2.5%, the presentation of the copies of the Certificate of Registration and License to Sell for a subdivision or condominium project issued by HLURB shall be sufficient proof for the purpose of the required Housing and Urban Development Coordinating Council (HUDCC)/Housing and Land Use Regulatory Board (HLURB) Certification in the regulations. Such being the case, and since you have substantiated your claim that you are the authorized seller of the aforementioned properties which are covered by a License to Sell and Certificate of Registration issued in favor of the developer of the said Subdivision project, BF Homes, Inc. by documentary evidence submitted, this Office is hereby giving due course to your aforesaid request by considering the Certificate of Registration and License to Sell issued in favor of your developer, BF Homes, Inc., to cover the sale of your properties situated at BF Homes-Caloocan Phase III for purpose of application for the issuance of the Certificate Authorizing Registration (CAR). It is however, understood that to be entitled to the creditable withholding tax rate of 0% the consideration of such sale of your properties must not have exceeded P500,000.00. This ruling is being issued based on the facts represented and on the documents (photocopies) submitted. If upon investigation it is found out that the facts are materially different, this ruling shall be considered automatically revoked as of the date of its issuance. Very truly yours, (SGD.) JOSE U. ONG Commissioner