BIR ANNOUNCES THE AVAILABILITY OF ONLINE APPLICATION FOR REGISTRATION INFORMATION UPDATES AND OTHER ONLINE FACILITIES FOR REGISTRATION –RELATED TRANSACTIONS THROUGH ONLINE REGISTRATION AND UPDATE SYSTEM (ORUS) RMC No. 12-2023
- The implementation of online application for registration information update and other online facilities for registration-related transactions through Online Registration and Update System (ORUS) starts on January 23, 2023.
- The updating of the following registration is available online through ORUS:
|Registration Information Update
|Other Online Facility
- Taxpayers who already have an existing ORUS account may access and avail the online registration updates and other functionalities by logging-in to the system.
- Taxpayers who do not have an ORUS account opted to use the said online registration-related facilities are required to enroll or create an account in ORUS following the guidelines prescribed under RMC No. 122-2022.
APPLICATION FOR ELECTRONIC CERTIFICATE AUTHORIZING REGISTRATION (E-CAR) MAY BE THRU ELECTRONIC ONE-TIME TRANSACTION (E-ONETT) RMC 10-2023
- The BIR encourages the use of the Electronic One-Time Transaction (eONETT) System by sellers habitually engaged in the sale of real properties.
- eONETT system is a web-based system where taxpayers will be able to transact their ONETT online. It
- Aims to reduce manual filing of returns and payment of taxes; and
- Aims to provide a mere convenient way to file applications in securing ONETT Computation Sheet (OCS) and/or eCAR.
- Sellers habitually engaged in the sale of real estate properties like real estate developers with voluminous ONETT transactions are hereby urged to use the eONETT System in securing OCS/eCAR.
- They are also encouraged to pay electronically thru the available ePayment channels of the BIR
BIR PRESCRIBES NEW FORMS FOR BIR FORMS 1606 AND 1706.
The BIR circularizes the availability of revised BIR Form Nos. 1606 and 1706 version January 2018 (RMC No. 9-2023)
|BIR Form 1606
|Withholding Tax Remittance Return [For Onerous Transfer of Real Property Other Than Capital Asset (Including Taxable and Exempt)]
|BIR Form 1706
|Capital Gains Tax Return (For Onerous Transfer of Real Property Classified as Capital Asset – both Taxable and Exempt)
- Forms are not yet available in eBIR.
- Taxpayer shall download the PDF version of the forms, print and fill-out completely all applicable fields.
- Payment can either be manual or online.
- No Payment Return – Taxpayer shall file the return to the RDO having jurisdiction over the place where the property being transferred is located.
- Sale of house and lot under economic and low-cost housing project of a company duly registered with the Board of Investments under Executive Order (EO) No. 226 is exempt from income tax and creditable withholding tax on its income received directly in connection with the mentioned project.
- The exemption is limited in duration and number of units sold.
- Sale of units used for commercial purposes such as leasing, retail stores, offices etc. shall be subject to payment of appropriate taxes.
- Sale of house and lot and other residential dwellings with selling price of not more than P1,919,500 (for residential lot) and not more than Php 3,199,200 (for house and lot and other residential dwellings) is VAT exempted. (BIR Ruling No: Certificate of Tax Exemption No: BOI-LEH-308-2022, BOI-LEH-309-2022)
- Sale of house and lot duly registered with the Department of Human Settlements and Urban Development (DHSUD) is exempt from income tax and creditable withholding tax on its income received directly in connection with the mentioned project. Moreover, sale of house and lot and other residential dwellings with selling price of not more than Php 3,199,200 is VAT exempted. (BIR Ruling Nos: Certificate of Tax Exemption No: PSH-310-2022)
- To be classified as capital assets the property must be not actually used in trade or business of the taxpayer, whether or not connected with his trade or business, or not held for lease or sale of customers.
- Real properties owned by taxpayers not engaged in the real estate business or referring to those persons other than real estate dealers, real estate developers and/or real estate lessors, shall, upon showing of proof that the same have not been used in business for more than two (2) years prior to the consummation of the taxable transactions involving the said real properties, and though classified as ordinary assets, be automatically converted into capital asset. (BIR Ruling No: OT-311-2022)