Transactions involving dealings in property often take a period of time to complete. This length of time may stir complications over what date to use in documents or may be used to an advantage. As such, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 64-2024 last May 28, 2024, to provide policies and clarifications on antedating of deeds of sale involving real properties.
In case the notarized deed of sale or other transfer documents are presented belatedly to the BIR, the relevant laws, taxes, and tax bases effective at the date of notarization shall be applied. Further, the corresponding penalties and interest for late filing of return and payment of applicable taxes shall be imposed.
However, if it is found that the deeds of sale or other transfer documents are dated earlier than when the transaction took place (or antedated), the laws and regulations effective at the time of presentation of the deeds of sale or other transfer documents to the BIR shall be applied.
Unless the taxpayer proves otherwise, a deed of sale or transfer document may be considered ante-dated if the documents are dated before the effectivity of the capital gains tax law, or the said documents are dated before the effectivity of the regulations imposing the creditable withholding tax on sales or transfers of real property, or if the documents are dated before the effectivity of the current zonal values as reflected in the latest Revised Schedules of Zonal Values of Real Properties within the jurisdiction of the concerned Revenue District Office.
Therefore, a taxpayer may submit supporting documents, such as cancelled checks, invoices, contracts to sell, or certifications from the appropriate Clerk of Court or Executive Judge, or the National Archives of the Philippines, to demonstrate that there is no antedating of public instruments.
Please be guided accordingly.
Source:
P&A Grant Thornton
Certified Public Accountants
P&A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd.
As published in SunStar Cebu, dated 14 June 2024
