Professional Documents
Culture Documents
B{I&HAU
t'f
RHPUBLIC GT THH PFIILIPPINHS
NEPAFAEd!HNT OT F[hIANCH
BURHAU SF II{TERNAL RTVENUH
Quezon Citv
A5 A' $1 '
Jilru ii
i, Ztlt$ *f_
,t/iueW
RffiCHEVffiIiC
June7,7016
SL]BJECT
tl're
TO
This Revenue Memorandr:m Order is being issr"red to prescribe guidelines and procedure
in tlre conduct of investigation on the capacity of a party/ies to acquire properties.
Such transactions covered by this Order are, bLrt not limited to, tlrose subject to: (1) Final
Capitai Gains J'ax (CGT) on sale of real properties considered as capital assets; (2) CGT on
sa1e, transfer or assignment of stocks not traded in the stock exchange; (3) expanded
rvithholding tax (EWT) on the sale of real properties considered as ordinary asscts; (4) donor's
tax; (5) estate tax; (6) other taxes including documentary stamp tax related to the saie/transfer
of properties, and (7) those covered by tax-free transfer under Section 40 of the NIRC.
I.
In order to ensure the tax compliance of the parlies, and to determine the capacity of the
parties to acquire and hold the properties subject of said transfer/assignment/sale ("Subject
Properties"), the tbllowing guidelines and procedure are hereby prescribed:
Application
t1
to
ili.
i]ldertal<.: th e fo 1 lowi
re
.)
(L.
rr g prccecl ur,.i,q
cases, veriry wiih the Integrat*ii 'l-iix S3,'stein (ll'3) that the
i:artir:s (seI1er'/assignor'/transfe rcr anci buver/assigrree/transfere e )
reglllariy files returris; einrl repori inccr:le suffjcieiit ic esrabiisli
flnanciai capacit),.
.
Iil all
b.
c.
1\/
I Y.
a.
To initiate an audit/investigation, the NID shali submit a memoiandumrequest directly to the Oftrce of the Cornmissioner (OCIR) indicating the
flollowing:
The parties to tre auditecl (the transf-ercr/s and the ti^ansfereer's),
lt'
ai
!*
{l.h}
iusti I'rcations
1-or
oi internai Revenue.
lia'
T',{ffi
sl
tt'
';l
(*
''l
'l'"{'
\,'' f '*i 't [,,, ''lt''
;*l
kts\s iA 'i' li , t'J
_Y;.1.
"{'
9,.'
i1s n-Ia\/
rl
rEffiPffiALITG CLqUSffi.
All other i'ules, orders or portions thereof that are oontrary to or incoirsistent r.vith the
provisions of this Order are hereby inodified and/or repealed accordingly.
III, EFFHCTIVITY.
KIM
,
,, , i,, -.t-'
-t
jn :, "" ....*u-
S. JAUHI{.7'S-}:{EI'{ARE
S
,.:
,!
C omntis s icrce'r of Int ei'n *l R-ev errue
BtI+NELI
*F
i"ry?ErrNAT RfiYfiNUH
Ftrt#*,1,'5-f
,?ffi:ou
JUrifiBt*t$
il{,fra/L
$EffiTHHVh
$r
#dtr* T
ft