Prescribing the Policies and Procedures for the Issuance of Electronic Certificate Authorizing Registration (eCAR)

May 12, 2016 REVENUE MEMORANDUM ORDER NO. 022-16 SUBJECT : Prescribing the Policies and Procedures for the Issuance of Electronic Certificate Authorizing Registration (eCAR) TO : All Internal Revenue Officers and Others Concerned I. Background Currently, the Certificate Authorizing Registration (CAR) is manually prepared and issued, with details simply typewritten on a pre-printed, serially numbered CAR form. Due to instances in the past where spurious CARs had been presented to the Registry of Deeds, BIR developed the Electronic Certificate Authorizing Registration (eCAR) System. The eCAR System is a web-based facility that automates the processing and generation of CAR with bar code and is linked with the Land Registration Authority (LRA) thru the LRA - BIR eCAR Verification System (LRA-BIR CVS) wherein the LRA-Registry of Deeds will be able to verify on-line the authenticity of the eCAR presented in support of the transfer. II. Objectives 1. To provide policies and guidelines for the issuance of eCAR; 2. To enumerate procedures on the turnover of CAR forms, requisitioning of eCAR forms and issuance of eCAR; and 3. To replace the utilization of CAR forms with eCAR forms. III. Policies and Guidelines 1. Effective June 1, 2016 the issuance of manually prepared CARs as well as the generation and issuance of a Tax Clearance (TCL2) in the Integrated Tax System (ITS) shall be stopped. Consequently, the use of BIR Form No. 2313 Certificate Authorizing Registration (CAR) (Revised April 2009) shall be discontinued and all unused CARs which are still in the possession of the Chief, Administrative & Human Resource Management Division (AHRMD) and Revenue District Officers (RDOs)/Large Taxpayers (LT) Division Chief shall be surrendered and duly accounted for to the Chief, Accountable Forms Division (AFD). 2. The facilities of the eCAR System thru the BIR website as well as the generation and printing of the same shall be used in the processing, review and approval of requests for issuance/re-issuance of eCAR. 3. The eCAR shall be printed on a security paper, an accountable form with security features and bar code. 4. All manually issued CARs that are outstanding and not yet presented to the Registry of Deeds are no longer valid. Instead, the concerned RDO/LT Division Chief shall replace this CAR with an eCAR and cancel the previously issued CAR. 5. Likewise, other manually issued expired CARs that are due for revalidation shall be replaced by eCARs by the concerned RDOs/LT Division Chiefs and thereby cancel the previously issued CAR. 6. eCARs shall have a validity of one (1) year reckoned from the date of issuance for purposes of presenting the same to the Registry of Deeds. Otherwise, the eCAR shall be deemed permanently expired and therefore of no force and effect. The RDOs/LT Division Chiefs shall issue a new eCAR to the taxpayer in case the latter fails to present the eCAR to the Registry of Deeds within the one (1) year validity period. In case of lost eCAR within the validity period, the RDOs/LT Division Chiefs shall not issue a new eCAR but instead reprint the same eCAR and issue to the requesting taxpayer. On both cases, a certification fee prescribed under Executive Order No. 197 in the amount of One Hundred Pesos (P100.00) shall be charged to the taxpayer/authorized representative for each released eCAR issued/reprinted, after affixture of P15.00 Documentary Stamp Tax on Certificates (Sec. 188 of the NIRC of 1997). The requirements for the replacement/reissuance/reprinting of eCAR are enumerated in Section IV D. b of this issuance. 7. For transfers of titled real properties, the Revenue District Officer shall issue one (1) eCAR per property covered by OCT/TCT/CCT and for transfers of untitled real properties one (1) eCAR shall be issued for each Tax Declaration, including the improvements thereon. However, for transfers of personal properties, a separate (single) eCAR shall be issued for all personal properties per transfer document ( e.g. , Deed of Sale, Deed of Donation, etc.). 8. For transfer of personal properties e.g. , Cash in Bank, wherein the taxpayer requests for issuance of separate eCAR for each bank account, the RDO shall issue instead a certified true copy of the eCAR for presentation to the concerned bank. A certification fee and documentary stamp tax as mentioned in No. 6 hereof shall be required from the requesting taxpayer for each certified eCAR. 9. The eCARs issued by the RDO other than the district office where the property is located shall no longer be authenticated/countersigned by the RDO/Head, ONETT Team having physical jurisdiction over the property/ies. The Register of Deeds shall validate the eCAR details on the LRA-BIR CAR Verification System (LRA-BIR CVS) to authenticate the eCAR copy of the taxpayer. 10. The RDO/LT Division shall continue to maintain the official CAR Registry Book, Annex H of Revenue Memorandum Order No. 15-2003. 11. The submission of "Monthly Report on CARs Prepared/Issued and Collections/Assessments from Real Property Transactions (Annex A10)" to Assessment Service as prescribed in Revenue Memorandum Order (RMO) No. 29-2011 shall be discontinued. However, the monthly report "List of Requisitioned Certificate Authorizing Registration" as prescribed in the aforementioned RMO shall still be submitted to Assessment Performance Monitoring Division (APMD) in soft copy. IV. Procedures A. Turnover of CAR Forms 1. The Chief, AHRMD and RDOs/LT Division Chiefs shall account all unused CARs which are still in their possession. 2. The RDOs shall transmit to the Chief, AHRMD of their respective regions, together with the unused CARs, a certified true copy of the last CAR issued by their Office and a transmittal letter of the surrendered unused CARs. 3. The Chiefs of the concerned LT Divisions shall transmit directly to the Chief, AFD and follow the other requirements in the preceding paragraph. 4. The Chief, AHRMD shall transmit to the AFD all unused CARs in his/her possession, all surrendered CARs by the RDO and certified true copy of the last CAR issued. A copy of the transmittal letter of the surrendered CARs and certified true copy of the last issued CAR duly received by the AFD shall also be furnished to the Assistant Commissioner, Assessment Service (ACIR, AS), Attention: The Chief, Assessment Performance Monitoring Division (APMD). B. Requisitioning of eCAR Forms 1. The Regional Director/Assistant Commissioner Large Taxpayers Service (LTS) shall requisition the accountable forms BIR Form Nos. 2313-R Certificate Authorizing Registration (For Transaction Involving Transfer of Real Properties) and 2313-P (For Transaction Involving Transfer of Personal Properties) from AFD in the National Office. 2. The RDOs/LT Division Chiefs shall requisition the eCAR forms from the Regional Director/ACIR LTS. 3. The Regional Director/ACIR LTS shall maintain a permanent record book where the following entries shall be made every time he issues eCAR forms to the requisitioning Revenue District Officer/LT Division Chief: a. Serial numbers of the eCAR forms issued; b. Name of requisitioning Revenue District Officer/LT Division Chief; c. Requisitioning office/Revenue District Office No/LT Division; d. Date of issuance/receipt of eCAR forms by RDO/LT Division; e. Name of authorized representative who is tasked to process and receive the requisitioned eCAR forms, must be with written authorization, if applicable; and f. Signature of requisitioning revenue officials/authorized representative. C. Issuance of eCAR C.1 The Revenue District Office and LT Division ONETT encoders shall do the following in the issuance of eCAR using the eCAR system : a. Request for access to eCAR system, based on the approved Security and Access Matrix (SAM), by filling-up BIR Form No. 0044 (Request for System Access) and submit the same to the National Office Help Desk or their respective Revenue Data Center Helpdesk. b. Log in to the BIR eCAR webpage thru the BIR web site by clicking the eCAR icon. For a step by step procedure in using the eCAR System, enclosed herewith is the eCAR Job Aid (Annex A). c. Generate/print the eCAR form in four (4) copies upon completion of the encoding. The back page of the eCAR accountable forms can be utilized in printing. However, if there are more than one accountable forms to be used, all the accountable forms serial numbers must be encoded. d. Log issues in the Help Desk Issue Log thru the National Office Helpdesk or their respective Revenue Data Center Helpdesk, if any. C.2 The Assistant Commissioner-Large Taxpayers Service (ACIR-LTS), Revenue District Officer (RDO), upon generation of eCAR shall : Affix his/her full signature for the first two (2) copies (for presentation to office concerned copy and taxpayer's copy) and initial on the last two (2) copies (issuing office's copy and attach to docket copy) of the eCAR form. HEITAD C.3 The Revenue Officer (RO), Group Supervisor (GS), Section Chief of Assessment Section and RDO/LT Division Chief shall : Affix their full signature on the ONETT computation sheet. However, only the ACIR-LTS/RDO shall affix signature on the eCAR as discussed in C.2 above. C.4 The Chief, Collection Section of the RDO/LT Division Chief shall : Verify the collection/payment of the internal revenue taxes, if any, against the BIR-ITS Collections and Bank Reconciliation System (CBR) and shall affix his/her signature on the CBR payment verification printout before the eCAR is issued. In case data is not uploaded in the said systems within five (5) days from the date of payment, the concerned Revenue Officers (ROs) may accept certification of remittance with bank seal from AABs. For no payment transactions, verification shall be done through the Mobile Revenue Collection Officers System (MRCOS) or if the return was filed through the eBIR Forms the verification of efiled no payment return shall be done. C.5 Systems Development Division (SDD) of the Information Systems Development and Operations Service (ISDOS) under the Information Systems Group (ISG) shall : Maintain the eCAR System, manage all technical issues and ensure the efficiency of the system. C.6 Security Management Division (SMD) under the Information Systems Project Management Service shall : Evaluate, approve, assign the roles/access privileges and process the system access request in accordance with the approved Security Access Matrix (SAM) upon receipt of the BIR Form No. 0044 (System Access Request Form) from RDCs and National Office and forward the same to Data Warehousing and Systems Operations Division (DWSOD). C.7 Data Warehousing and Systems Operations Division (DWSOD) shall : Grant the request for system access upon receipt of the approved BIR Form No. 0044 (System Access Request Form) from SMD. The System Administrator is also responsible in releasing the login and password to the person making the request. D. Replacement/Reissuance & Reprinting of eCAR The RDO/LT Division Chief, ONETT officer of the day shall : a. Ensure the authenticity of the CAR/eCAR issued. b. Require the requesting taxpayer of the following: b.1 A written request for the issuance of a new eCAR, to be filed by the transferor/transferee (or their representative authorized in writing) with the concerned RDO/LT Division authorized to issue eCARs under existing rules and regulations; b.2 The original and duplicate copies of the manually issued CAR that are still outstanding and not presented to the Registry of Deeds and expired CAR; b.3 The original copy of the document of sale, exchange or transfer ( e.g. , Deed of Sale, Deed of Assignment, Deed of Donation, Deed of Extrajudicial Settlement of Estate, etc.) which has been previously stamped and signed by the RDO (or authorized signatory) who issued the eCAR; and b.4 Proof of tax payments previously made such as photocopy of Official Receipt issued to the taxpayer or Collections and Bank Reconciliation System payment verification print out. On both cases, the payment must be verified and certified by the Chief, Collection Section. Moreover, payments made on 1999 and prior years should be verified and certified by the Chief Revenue Accounting Division per Revenue Memorandum Order No. 7-2016. V. Repealing Clause All orders, memoranda and other revenue issuances which are inconsistent with this Order are hereby revoked, modified or amended accordingly. VI. Effectivity This Order shall take effect immediately. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ATTACHMENT Electronic Certificate Authorizing Registration (eCAR) System Accessing the System Browser: Internet Explorer (version 8 or higher); At the address bar of the IE browser type the URL address; Production: http://bir-ecar.bir.gov.ph/ecar. The following lists the standard Function Keys in eCAR. Keyboard Operation Keyboard operation is standard. The <TAB>, <Shift + TAB> keys are used to move from one field to another. The keyboard can also used n to enter data to text boxes (usually the white boxes). Mouse Operation Mouse operation is also standard. The mouse can be used to place the focus on a certain text box, just click anywhere inside the text box and the cursor will automatically go to the first input character. 1. On your desktop, press the right-click button on the mouse. Then, click New and select Shortcut . 2. The Create Shortcut dialog box will appear. Type in the web address http://bir-ecar.bir.gov.ph/ecar and click Next to proceed. 3. Enter text in the Shortcut Name box and click on Finish button to create the shortcut. 4. At your desktop, you will see the newly created shortcut for eCAR. Login/Logout 1. From the Windows desktop, double click the Web Browser (Internet Explorer version 8 or higher.) On the address bar type http://172.16.160.160:8080/ecar (development server)/ http://bir-ecar.bir.gov.ph/ecar (production server) to go to eCAR log in screen . 2. The eCAR log in screen will appear. Click compatibility view ATICcS 3. Enter your User ID and Password . These will be provided by the system administrator to the user upon approval of system access request. Click on the Log in button or press Enter key to go the Change Password screen. Note : You may only input the wrong password for three (3) consecutive times before you are locked out of the system. Locked out users must contact the system administrator to regain system access. 4. To change password, enter your Current Password and your New Password . To show the password in plain text, click on the Show Password checkbox. Then, click on the SAVE button. Note: A user will not be allowed to re-use any of his/her previous five (5) passwords. He/she will be brought to the change password screen upon login: on his first login, when using a system generated password, or when the current password has expired. 5. The eCAR System welcomes the user to the CAR and Report Modules. 6. To exit from the system, click on the Log out button. The users will go back to the log in screen. Note : Users may log out from anywhere in the system. Create a New CAR Note : It is assumed that you have already logged in to the eCAR system. 1. To create a new CAR, click on the CAR tab. 2. At CAR Search screen, click on the Create button to go to the CAR transaction details. 3. In the CAR transaction details, select Type of Transaction from the drop down list. Sales buying and selling of real properties and shares of stock. Estate a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries. Donation a tax on a donation or gift, and is imposed on the gratuitous transfer of property between two or more persons who are living at the time of the transfer. Others exchange of properties/property dividends. 4. Select the Type of Property on the drop down list based on the data given. Real combination of land, improvements, buildings and machinery in one transaction. Personal possessions other than real estate in one transaction. Real and Personal combination of real and personal properties in one transaction. 5. Enter the TIN of the (seller(s)/buyer(s)) involved in the transaction. The Registered Name and Address will be automatically populated. You can modify address if it is need to be changed. n Note : Press TAB to move from one field to another. Do not press Enter key for a prompt screen will appear asking if you want to preview the CAR. If you want to add taxpayer, click the 6. For Real Property Once the real property has been selected, user will be redirected to the Real Property CAR screen. Fill in all mandatory fields. Enter property details (real) Add Particulars (Kind of Properties) Enter property details (real) Remove Particulars (Kind of Properties) Enter property details (real) Add Improvement Enter property details (real) Remove Improvement Enter property details (real) Single Selling Price Multiple Properties Ex. Land w/Improvement TIADCc Enter property details (real) Comparing Land w/Improvement Enter property details (real) One property with Multiple Classification For Personal Property Once personal property has been selected, user will be redirected to the Personal Property CAR screen. Fill in all the mandatory fields. Data may only be encoded for personal property once checkboxes are ticked. Enter property details (personal) ESTATE Bank Account details will be available for Estate Transaction only. Fill in all the mandatory fields. To add or remove item under Shares of Stock, Motor Vehicle, and other Assets, click on the check box at the upper left corner. To add additional item click on the For Real and Personal Property Fill in all the mandatory fields. 7. Enter the reference document details. The transfer document is the basis of transaction, date entered in the Date of Notarization shall be the Transaction Date for Sales and Donation and Date of Death for Estate. 8. Enter the payment details (with payments) Enter the payment details (exempt.) Click on the exempt check box. The user will no longer required n to enter mandatory field. Taxes that are exempt shall appear as taxes exempt in the CAR form. To add another payment, click on "+" button. To delete the added payment, click on "-" button. For additional payments identified during review ex. payment for amended return and penalties, check the per review check box. 9. In the Tax Exempt field, users should specify the reason for tax exemption. In Legal Basis field, users may input a law or ruling used as basis for exemption. Enter the name of the Revenue Officer, Group Supervisor, and Authorized Revenue Officer who reviewed and approved the issuances of CAR. Enter remarks in the remarks field , if applicable. 10. To preview the current transaction, click on the Preview button and CARs under the transaction will be assigned a CAR Link with temporary CAR number. To clear all the data that have been encoded, click on the Cancel button. To go back to the CAR search screen, click on the Back button and unsaved changes will be lost. 11. The dialog box will appear. Click on OK button to preview the CAR. eCAR ESCROW Account (Exempt from Sale of Principal Residence) The CAR preview screen shows the details of the transaction that have been entered into the system. The transaction is automatically split on a one real property one CAR basis while personal properties are all placed under one CAR. Previewed CARs may still be edited. The barcode number is generated at this point. To go to the preview page of the corresponding CAR, click on the CAR link shown on the upper left side of the screen. AIDSTE Click on the Submit button to create a unique transaction number. To go back to the CAR creation page, click on the Edit button. Fields are filled out but editable. The dialog box will appear. Click on the OK button. It is assumed that we chose to edit the CAR. The CAR Edit screen will appear. This is where users make all the necessary corrections. Click on the preview button to Preview the CAR. 11. n Click on the Submit button. 12. The dialog box will appear. Click on OK button to create a unique transaction number. All CARs under the transaction shall also be assigned a unique CAR number. The CAR Generated screen will appear containing the unique CAR number on the upper left side of the screen. Click on the CAR number to go to the preview page of the corresponding CAR. Generated CAR may no longer be edited. 13. Enter on the text box the accountable form serial number printed on the security paper to be used for printing the CAR. The users must enter the accountable form number for each CAR separately. While blank, Print button is disabled. Click on the Print button to produce the PDF of the CAR to be printed. To cancel all CARs under the transaction, click on the Cancel button. Then the user is brought to the CAR create page with filled up but editable fields. CARs produced in this manner shall have the same transaction number as the cancelled CARs but shall be assigned different CAR numbers. To go back to the CAR Search page, click on the Back button. The dialog box will appear. Click on OK button to proceed. 14. Click on Open button to show the PDF copy of the CAR. Click on the Save button to save the PDF copy of the CAR and to go back to the preview screen of the CAR, click on the Cancel button. If you want to save the CAR, create a New Folder click 'Save' button. Print a CAR 1. Open the pdf of the CAR to be printed. 2. On the PDF produced by the system, click on the File tab or press CTRL+P on your keyboard to set up printer settings. Then click on the Print button. 3. Set to " Fit ." Then click on Page Setup option. Note : Printer set up may vary depending on the type/brand of printer. 3. n Choose Folio as the paper size and choose Manual Paper for the source. Click on OK button. AaCTcI 4. Click on Properties option. 5. Click on Print Quality then choose Best . Click on OK button. 6. Click on the Print button. Search a CAR Note : It is assumed that you have already logged in to the eCAR system. 1. On the eCAR System, click on the CAR tab. 2. Enter text on the box any of the following fields: Transaction Number, CAR Number Transferor TIN or Name , or Transferee TIN or Name . Then click on the Search button. The CAR Search result will appear at the bottom part of the CAR Search screen. Transaction Number Link takes user to the details view page of first CAR under the transaction CAR Number Link takes user to the details view page (either CAR preview or generated CAR screen depending on CAR status) of the CAR Transferor shows the first (primary) transferor of the chosen CAR Transferee shows the first (primary) transferee of the chosen CAR Type of Property shows the type of property involved for the CAR Date Issued shows the issuance date of the CAR Status shows the status of the CAR Reason for Reissue/Cancellation shows the reason, as entered by the user, for the reissuance or cancellation of a particular CAR Note : Real and Personal CARs has different Status. Personal CAR has only 'Printed' status because it will not be submitted to LRA. 3. Click on the CAR Number to view the particular CAR. Edit a CAR Note : It is assumed that you have already logged in to the eCAR system. 1. On the eCAR System screen, click on the CAR tab. 2. Enter text on the box any of the following fields: Transaction Number, CAR Number Transferor TIN or Name , or Transferee TIN or Name . Then click on the Search button. 3. Click on the CAR Number of the CAR to be edited. At the bottom part of the CAR Search screen the CAR Search result will appear. Note : Only CARs with the DRAFT status may be edited. 4. Click on the Edit button at the bottom of the CAR preview page. 4. n The dialog box will appear. Click on the OK button. 5. Make the necessary changes to the transaction and click on Preview button to save changes. Cancel a CAR Note : It is assumed that ARDO/RDO have logged in to the eCAR system. Encoder has no access to CAR cancellation. Check LRA status before cancelling the CAR. Cancelling one (1) CAR, all the CAR in one transaction will be cancelled also (if in case there are two (2) cars in one transaction.) 1. On the eCAR system screen, click on the CAR tab. EcTCAD 2. Enter text on the box any of the following field: Transaction Number, CAR Number Transferor TIN or Name , or Transferee TIN or Name . Then click on the Search button. 3. Click on the CAR Number of the CAR to be cancelled. At the bottom part of the CAR Search screen the CAR Search result will appear. Note : Only CARs with the generated, printed, printed w/LRA confirmation, and printed w/o LRA confirmation statuses may be cancelled. 4. Click on the Cancel CAR button at the bottom of the CAR preview page. Replacement CARs retain their original transaction numbers but are assigned new CAR numbers. 5. The dialog box will appear. Click on the OK button. The system will check the BIR-LRA shared database for status update. If CAR's status is 'in-process' cancellation is no longer possible. Check the exempt box if certification fee is not to be collected. Details from the Original CAR will be auto-populated. 5. n Enter the reason for cancelling the CAR. Then click on Preview button. After preview, it generates a new CAR number Original Issued CAR (ex. cancelled due to erroneous encoding of basic tax (CGT) Original Issued CAR (ex. cancelled due to erroneous encoding of basic tax (CGT) New CAR (replacement of the cancelled CAR) Search the cancelled CAR after preview * replacement CARs retain their original transaction numbers but are assigned new CAR numbers Reprint/Re-issue a CAR Note : It is assumed that you ARDO/RDO have logged in to the eCAR system. Encoder has no access to CAR Reprinting/Re-issuance. 1. On the eCAR System screen, click on the CAR tab. 2. Enter text on the box any of the following fields: Transaction Number, CAR Number Transferor TIN or Name , or Transferee TIN or Name . Then click on the Search button. 3. Click on the CAR Number of the CAR to be reprinted. At the bottom part of the CAR Search screen the CAR Search result will appear. 4. Click on the Reprint or Reissue button. 5. The dialog box will appear. Click on the OK button. The system will check the BIR-LRA shared database for status update. If CAR's status is 'in-process' reprinting or re-issuance is no longer possible. 6. Enter new Certification Fee details, Reason for Re-issuance, and Accountable Serial Form Number (Print button will be enabled). Then click on the Print button. Only the certification fee details are changed when reprinting CARs. Other details such as transaction and CAR no. are retained from the original printing. For spoiled CARs, click on the exempt checkbox so that the users may not need to enter new Certification Fee details. Note : Reason for Reissuance field is editable. If reason is due to expiration of the Original CAR please indicate the Original CAR #. 7. Click on the Print button. To view reprinted CAR in the search result: Original Issued CAR (ex. Reason of reprinting lost CAR) New CAR (reprinted due to lost of original the CAR n To view reissued CAR in the search result: HSAcaE Original Issued CAR (ex. reason of re-issuance: expired CAR, not yet presented to Registry of Deeds) New CAR (re-issued due to expired original CAR) To Print the "Submitted Not Printed" CAR thru search: 1. Enter the CAR number, then click Search button. 2. Enter the new Accountable Form Serial number (print button will be enabled. Click on the Print button.) <img alt="" data-cke-saved-src="/ckeditor_assets/pictures/content_revenue_memorandum_order_no_022-16_117.png" src="/ckeditor_assets/pictures/content_revenue_memorandum_order_no_022-16_117.png" width="50%" style="responsive-pic { width: 100%; height: auto; } " "=""> CAR Reports Note : It is assumed that you have already logged in to the eCAR system. 1. On the Home Page, click on the Report tab. 2. Select the report Type on the Report Dropdown List. 3. Choose Type of Reports. 4. Enter Date From and Date To, TIN, and Name of Taxpayer. Click on the View XLS . For Regional Director, Asst. Regional Director and CAS will access the districts under its Region 5. Open Report to Excel File. Reports will show in Excel file. Click on Enable Editing to view and print the file. n Copied verbatim from the official copy. The phrase "can also used" should read as "can also be used". n Copied verbatim from the official copy. n Copied verbatim from the official copy. The phrase "will no longer required" should read as "will no longer be required". n Copied verbatim from the official copy. Irregular numerical sequence. n Copied verbatim from the official copy. Irregular numerical sequence. n Copied verbatim from the official copy. Irregular numerical sequence. n Copied verbatim from the official copy. Irregular numerical sequence. n Copied verbatim from the official copy. The phrase "due to lost of original the CAR" should read as "due to loss of the original CAR".