BIR removes 5-year expiration of eCAR

The Bureau of Internal Revenue (BIR) has removed the five-year validity period of Electronic Certificate Authorizing Registration (eCAR) to ease the burden of taxpayers in the sale, donation, or transfer of properties.

In a statement on Tuesday, the BIR said Internal Revenue Commissioner Romeo Lumagui Jr. issued Revenue Regulations No. 12-2024 (RR No. 12-2024).

Under RR No. 12-2024, the taxman extended the validity of eCAR until it is presented to the concerned Registry of Deeds office.

"The eCAR is now valid until its presentation to the Registry of Deeds. We have removed the five-year validity period for the benefit of taxpayers,” said Lumagui.

“Under Bagong Pilipinas, the BIR will also be a service-oriented agency, not merely a collection-oriented one. Whatever we can do to help ease the burden of our taxpayers in paying their taxes, we will implement," said the BIR chief.

The CAR is issued by the BIR to allow the Land Registration Authority (LRA) to transfer ownership of real properties resulting from sale, donation and other modes of transfers.

The document serves as a proof that the transfer of property was reported, and all the necessary taxes were paid in full by the taxpayer.

Prior to the issuance of RR No. 12-2024, the validity period of the eCAR was for five years.

However, the BIR noted that “not all eCARs are presented within the validity period, the taxpayers then have to request for the reissuance of the eCAR.”

The tax collection agency called it an “unnecessary burden to taxpayers.”

To address the issue, the BIR said Lumagui issued RR No. 12-2024 by removing the five-year validity period.

The eCAR will now be valid until its presentation to the concerned RD, it said.

Moreover, the BIR said only CARs issued outside of the eCAR System will be revalidated.

“The BIR, under the leadership of Commissioner Lumagui, welcomes comments and suggestions on how to improve the tax system in the Philippines,” the BIR said.

“One of his priority programs is Excellent Taxpayers Service, which is a timely program because of its complementarity to the Ease of Paying Taxes Act,” it said. — RSJ, GMA Integrated News