RR No. 9-2012 — Implements certain Sections of the NIRC of 1997 relative to the non-redemption of properties sold during involuntary sales (Published in Manila Bulletin on June 4, 2012)

4 BUREAU OE INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE Bdzb BKy RECORDS MGT. DIVISION BUREAU OF INTERNAL HEM RECEIVED Ju iY^ 22 10:13 A. M.

May 31, 2012

REVENUE REGULATIONS NO. G- 2012

SUBJECT National Internal Revenue Code of 1997 on Non-Redemption of Implementing Sections 24(D)(1), 27(D)(5), 57, 106 and 196 of the Properties Sold During Involuntary Sales

TO All Internal Revenue Officers and Others Concerned

amended, on non-redemption of property/ies sold during involuntary sales; and 2) revoke and Revenue Code of 1997 (Tax Code), as amended, these Regulations are promulgated to: 1) implement Sections 24(D)(1), 27(D)(5), 57, 106 and 196 of the Tax Code and Revenue Regulations (RR) No. 2-98, as amended, and Revenue Regulations (RR) No. 16-2005, as amend all contrary issuances and rulings. Section 1. Scope. -- Pursuant to the provisions of Section 244 of the National Internal

Auctioned Off Property/ies within the Applicable Statutory Redemption Period. - In case of non-redemption of properties sold during involuntary sales, regardless of the type of Section 2. Taxability of Owner's/Mortgagor's Faiiure to Redeem his Foreclosed?

(CGT) imposed under Sections 24(D)(1) and 27(D)(5) of the Tax Code, in relation to Section 57 proceedings and personality of mortgagees/selling persons or entities, the Capital Gains Tax

RR 16-2005, as amended; and the Documentary Stamp Tax (DST) imposed under Section 196 Withholding Tax (CWT) imposed under Section 57 and RR 2-98, as amended, if the property is of the Tax Code shall become due. of the Tax Code and RR 2-98, as amended, if the property is a capital asset: or the Creditable an ordinary asset; the Value-added Tax (VAT) imposed under Section 106 of the Tax Code and

from the sale, shall then file the CGT return and remit the said tax to the Bureau within thirty (30) days from the expiration of the applicabie statutory redemption period; or file the CwT The buyer of the subiect property, who is deemed to have withheld the CGT or CWT due

return and remit the said tax to the Bureau within ten (1o) days following the end of the month afiter expiration of the applicable statutory redemption period, provided that, for taxes withheld in December, the CwT return shail be filed and the taxes remitted to the Bureau on or before January 15 of the following year.

owner/mortgagor on or before the 2oth day or 25h day, whichever is applicable, of the month the imposition of VAT, the said tax must be paid to the Bureau by the VAT-registered following the month when the right of redemption prescribes. If the property sold through invoiuntary sale is under the circumstances which warrant

The DsT return shall be filed and the said tax paid to the Bureau within five (5) days after the ciose of the month after the lapse of the applicable statutory redemption period.

The CGT/CWTAT and DST shall be based on whichever is higher of the consideratior (bid price of the highest bidder) or the fair market value or the zonal value as determined in accordance with Sectior 6(E) of the Tax Code

Section 3. Repealing Clause. - All regulations, rulings or orders, or portions thereof

amended accordingly which are inconsistent with the provisions of these Regulations are hereby revoked, repealed or

Section 4. Effectivity. -- These Regulations shall take effect immediately

cesAr v.PuRisIMA Secretary of Finance

Recommending Approval: 005059

Commissibnerfof Internal Revenue KIM S. SACINTO - HENARES 009324 T RECORDS MGT. DVSION BUREAU OF INTERNAL REVENUE JUN i 2Ot2 10.1aA.M

RECEIVED