Publishing the Memorandum of Agreement Between the Commissioners of the Land Registration Commission and the Bureau of Internal Revenue

November 11, 1981 REVENUE MEMORANDUM CIRCULAR NO. 37-81 SUBJECT : Publishing the Memorandum of Agreement Between the Commissioners of the Land Registration Commission and the Bureau of Internal Revenue TO : All Revenue Service Chiefs, Regional Directors, Revenue District Officers and All Others Concerned For the information and guidance of all concerned there is published hereunder the Memorandum of Agreement between the Land Registration Commission and the Bureau of Internal Revenue providing for a working arrangement between the two offices on the registration of transfers of real property. cd Republic of the Philippines Metro Manila MEMORANDUM OF AGREEMENT This Memorandum of Agreement is hereby entered into by and between the Commissioners of the Land Registration Commission and the Bureau of Internal Revenue with the following objectives: 1. To ensure effective implementation of the capital gains tax law, (Batas Pambansa Blg. 37) and pertinent provisions of the National Internal Revenue Code involving taxation of transfers of real properties through donation, inheritance, or other mode of conveyance; 2. To effect proper coordination between the two (2) offices in the registration of transfers of ownership and other transactions involving real property; and aisa dc 3. To ensure that the correct taxes on such transactions are properly assessed and collected. To attain the foregoing objectives, the parties to this agreement hereby agree to the following: 1. That The Bureau of Internal Revenue shall: a) Issue a Certificate of Clearance for all transfers of properties through sale (under the Capital Gains Tax Law), donation, inheritance, or other mode of conveyance after the taxes on such transactions have been duly paid, or a Certificate of Exemption from payment of taxes if the transactions are not subject to any tax; b) Release to the taxpayer the original and triplicate copies of the Certificate of Clearance or Exemption for presentation to the Register of Deeds of the city or municipality having jurisdiction over the property transferred; c) Submit to the Register of Deeds concerned the specimen signatures of the BIR officials authorized to sign the Certificate of Clearance or Exemption; and d) Assign a liaison officer with the Officer of the Register of Deeds. 2. The Land Registration Commission shall: a) Register transfers of real property subject to the Capital Gains Tax, Donor's Tax or Estate Tax or those exempt therefrom only upon presentation of the required Certificate of Clearance or Exemption issued by the authorized BIR officials; b) Prepare a list of all transfers of real property registered during the preceding month indicating the names and addresses of the vendors and vendees, and location of properties transferred, to which list the corresponding triplicate copies of Certificate of Clearance or Exemption shall be attached; c) Release to the duly authorized representatives of the Revenue District Officer two (2) copies of the list with the triplicate copies of the Certificates of Clearance or Exemption; and d) Allow authorized BIR examiners access to records of registration of transfers of real properties including those registered prior to the effectivity of this Agreement. This Memorandum Agreement shall take effect immediately. IN WITNESS WHEREOF, the parties hereto have hereunto affixed their signatures this 11th day of November, 1981, Quezon City, Philippines. (SGD) FEDERICO B. ALFONSO, JR. Acting Commissioner Land Registration Commissioner (SGD) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue" All those concerned are hereby enjoined to be guided accordingly. (SGD) RUBEN B. ANCHETA Acting Commissioner