BIR Issues Revenue Regulations No. 12-24 Amending Rules on the Validity of CARs

The Bureau of Internal Revenue (“BIR”) issued on 20 June 2024 Revenue Regulations (“RR”) No. 12-24 amending RR No. 3-2019 removing the validity period of Certificates Authorizing Registration (“CAR”) and modifying the requirement of revalidation. 

A CAR is issued by the BIR to allow the Land Registration Authority to transfer ownership of real properties resulting from sale, donation and other mode of transfers. It is proof that the transfer of property was reported and that all necessary taxes were paid in full by the taxpayer. 

Under RR No. 3-2019, Electronic Certificates Authorizing Registration (“eCAR”) issued by the BIR are subject to a validity period of 5 years. However, due to the failure of certain taxpayers to present the eCAR within the validity period, taxpayers and BIR offices are burdened with the duty of revalidation. With RR No. 12-24, effective 5 July 2024, an eCAR will be valid from the date of its issuance until presentation to the Registry of Deeds (“RD”), and certain eCARs will no longer need to be revalidated. 

RR No. 12-24 amends RR No. 3-2019 by making the following changes:

1. Effective 5 July 2024, eCARs shall be valid from the date of its issuance until such time that it is presented to the concerned RD. 
2. Only CARs issued outside of the BIR’s eCAR System, if any, shall be allowed for revalidation.

ALL eCARs issued through the BIR’s eCAR System which is linked to the Land Registration Authority System shall remain to be valid and will no longer require revalidation EVEN IF the same is presented to the RD BEYOND the specified validity period.