Foreign Investor Need Not Submit Proof of Inward Remittance of the Purchase Price Before Issuance of Certificate Authorizing Registration

July 17, 1991 BIR RULING NO. 138-91 21 (e) 000-00 138-91 Gentlemen : This refers to your letter dated February 12, 1991 requesting for a clarification on whether or not a foreigner who invests in a condominium project, through the purchase of a condominium unit, must submit proof of inward remittance of the purchase price before the Certificate Authorizing Registration (CAR) would be issued to him by the BIR. In reply, please be informed that insofar as this Office is concerned, the Certificate Authorizing Registration (CAR) is issued, as a matter of course, upon due verification that the proper taxes have already been paid by the concerned party/ies to the transaction. Section 49 (a) (4) of the Tax Code, as amended, the last paragraph thereof, provides that "no registration of any document transferring real property shall be effected by the Register of Deeds unless the Commissioner of Internal Revenue of his duly authorized representative has certified that such transaction has been reported, and the tax herein imposed, if any, has been paid." cdtech In view thereof, this Office is of the opinion as it hereby holds that the source of the money with which the purchase price of real property was paid for is not within the province of this Office to determine. Hence, there is no necessity to require the submission of proof of inward remittance of the purchase price for a condominium unit by a foreign investor. The requirements for the issuance of the CAR are limited to the reporting of the transaction transferring the real property, and paying the taxes imposed on such transactions. Very truly yours, (SGD.) JOSE U. ONG Commissioner