Proper Venue for the Filing of the Creditable Withholding Tax Return and Payment of the Corresponding Tax for Transactions Involving the Sale of Real Properties and Which Revenue District Office Should Issue the Requisite Certificate Authorizing Registration After Payment Thereof

July 15, 1996 BIR RULING NO. 078-96 50 (b) 000-00 078-96 Villa Orion Property Development, Inc. 17/F, BA-Lepanto Building 8747 Paseo de Roxas Makati City Attention: Mr . Ronald P . Sugapong Accounting Manager Gentlemen : This refers to your letter dated July 20, 1995 stating that you are a corporation organized and existing under and by virtue of Philippine laws; that through your president, you executed to Deed of Absolute Sale with Taurus Printing Corporation for the purchase of a certain parcel of land situated at Calamba, Laguna: that documentary stamp taxes were paid on the same date that the Deed of Absolute Sale was executed and notarized; that on July 24, 1995 or five (5) days after the execution of the Deed of Absolute Sale, your representative went to the BIR Makati-South Office for the payment of taxes withheld from the aforementioned sale transaction; that upon filing, however, your representative was advised by some officers of the BIR that they cannot accept the same as it should be filed with the BIR Revenue District having jurisdiction over the subject property, which in this case is BIR-Calamba; that your representative being aware of Revenue Regulations No. 6-85 and fearing that the company might later on be assessed penalty and surcharges for filing with/remitting to the wrong venue, insisted that the proper venue for the filing of the creditable withholding tax of your company was with the BIR Makati-South and not with BIR-Calamba; that BIR personnel explained that it has been their standard practice to refer the withholding agent to the BIR District Office having jurisdiction over the place where the property subject of the sale transaction is located for the payment/filing of the creditable withholding tax; and that given such situation, you opted to pose a query on the same in order to be clarified. casia Based on the foregoing representations, you are now requesting in effect for a ruling on where is the proper venue for the filing of the creditable withholding tax return and payment of the corresponding tax for transactions involving the sale of real properties and which revenue district office should issue the requisite Certificate Authorizing Registration (CAR) after the payment of all necessary taxes. In reply, please be informed that under Section 5(a) of Revenue Regulations No. 12-94 otherwise known as the Revised and Consolidated Expanded Withholding Tax Regulations implementing Section 50(b) of the Tax Code, as amended, the taxes deducted and withheld pursuant to said Regulations shall be paid upon filing a return in duplicate under BIR Form 1743W with the Revenue District Officer or the Collection Agent of the City or duly authorized Treasurer of the municipality where the withholding agent has his legal residence or principal place of business except in cases where the Commissioner of Internal Revenue allows otherwise. Accordingly, the proper venue for the filing of the creditable withholding tax transactions involving the sale of real properties, as in this case, is the Revenue District Office where the withholding agent has his legal residence or principal place of business, which in the case is the Revenue District Office of Makati-South considering that as the buyer withholding agent your principal place of business is at 17/F BA Lepanto Bldg., 8747 Paseo de Roxas, Makati City. However, the Certificate Authorizing Registration (CAR) shall be issued by the Revenue District Office having jurisdiction over the place where the property subject of the said sale is located, which in this case is the Revenue District Office of Calamba, Laguna, upon presentation of proof that the creditable expanded withholding tax and documentary stamp tax due as a consequence of the said sale transaction has in fact been withheld and remitted to this Office. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue