BIR Issues Amendments on the Venue for the Issuance of a Certificate Authorizing Registration Relative to Tax-Free Exchanges of Properties

On 08 June 2023, the Bureau of Internal Revenue (“BIR”) issued Revenue Memorandum Circular (“RMC”) No. 65-2023 amending Item VIII of RMC No. 19-2022 on the venue for the issuance of Certificate Authorizing Registration (“CAR”) relative to tax-free exchanges of properties under Section 40(C)(2) of the National Internal Revenue Code of 1997, as amended (“Tax Code”).

Briefly, RMC No. 19-2022 provides that for the purpose of implementing the transaction covering tax-free exchanges of properties under Section 40(C)(2) of the Tax Code, as amended, prior ruling is not necessary. Instead, parties to the transaction may directly apply for the issuance of CAR with the concerned Revenue District Office (“RDO”). In case of a real property, the documentary requirements shall be submitted to the RDO having jurisdiction over the place where the property is located, or in case of shares of stock, the RDO where the issuing corporation is registered. If multiple real properties and/or shares of stocks situated in different locations covered by different RDOs are involved, the CAR shall be processed by the RDO where the transferee corporation is registered.
To simplify or streamline the venue for the issuance of CAR, the BIR through RMC No. 65-2023 announced that the documentary requirements shall now be submitted to the RDO or Large Taxpayer (“LT”) Office where the transferee/surviving corporation is registered, regardless of the number of real properties and/or shares of stocks involved, and regardless of whether the properties are situated in various locations covered by different RDOs/LT Offices.