BIR Clearance Authorizing the Transfer of Title to the Vendee/Transferee of Real Property in Cases of Payment of Capital Gains Tax and Documentary Stamp Tax Liabilities Under Executive Order No. 44

January 21, 1987 REVENUE MEMORANDUM CIRCULAR NO. 03-87 SUBJECT : BIR Clearance Authorizing the Transfer of Title to the Vendee/Transferee of Real Property in Cases of Payment of Capital Gains Tax and Documentary Stamp Tax Liabilities Under Executive Order No. 44 TO : All Internal Revenue Officers, Registers of Deeds and Others Concerned Information has it that taxpayers, whether individuals, estates or trusts who settle thru a compromise under Executive Order No. 44 his/its capital gains tax and documentary stamp tax liabilities which have been due/delinquent as of December 31, 1985 are required by the Registers of Deeds to submit the usual BIR Clearance authorizing the transfer of title to real property sold, exchanged or otherwise disposed of as required under B.P. Blg. 37 as amended. In this connection, pertinent portion of Revenue Memorandum Order No. 39-86 dated November 18, 1986 provides: "8. Clearance 8.1. 30% compromise settlement rate . If the compromise settlement rate is equivalent to 30% of the basic tax assessed, immediate action shall be taken on the taxpayer-applicant's application. After payment of the compromise amount, the revenue office which passed upon the application as referred to in paragraph 5.2 hereof, shall issue to the taxpayer a letter, signed by the chief of the said revenue office, confirming the payment and advising that the case is already closed. 8.2. Below 30% compromise settlement rate . If the recommended compromise settlement rate is below 30%, the Evaluation Committee shall forward to the Office of the Commissioner the complete docket of the case, together with (a) its report and recommendation; and (b) a letter to the taxpayer-applicant, for the signature of the Commissioner, advising of action taken on the case." cd i Accordingly, the Registers of Deeds should accept the aforesaid letters of the Commissioner of Internal Revenue or the Chief of the Revenue office which has passed upon the taxpayer's availment of compromise under Executive Order No. 44 as BIR clearance authorizing the transfer of title to real property in the name of the vendee/transferee. It is desired that this Circular be given as wide a publicity as possible. (SGD.) BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue TAN-T5152-J0923-A-0