• Skip to content
  • Skip to navigation
Contact us
Grant Thornton logo
  • Insights
  • About us
  • Contact us
  • English
Global site
  • Global site
  • Africa
  • Americas
  • Asia Pacific
  • Europe
  • Middle East
    Services
    • Japan Desk
    Audit and Assurance
    We deliver value-added audit and assurance services to our clients, helping them manage their fiscal responsibilities with prudence and foresight.
    See Overview
    • Audit approach overview
      Our audit approach will allow our client's accounting personnel to make the maximum contribution to the audit effort without compromising their ongoing responsibilities
    • Annual and short period audit
      At P&A Grant Thornton, we provide annual and short period financial statement audit services that go beyond the normal expectations of our clients. We believe strongly that our best work comes from combining outstanding technical expertise, knowledge and ability with exceptional client-focused service.
    • Review engagement
      A review involves limited investigation with a narrower scope than an audit, and is undertaken for the purpose of providing limited assurance that the management’s representations are in accordance with identified financial reporting standards. Our professionals recognize that in order to conduct a quality financial statement review, it is important to look beyond the accounting entries to the underlying activities and operations that give rise to them.
    • Other Related Services
      We make it a point to keep our clients abreast of the developments and updates relating to the growing complexities in the accounting world. We offer seminars and trainings on audit- and tax-related matters, such as updates on Accounting Standards, new pronouncements and Bureau of Internal Revenue (BIR) issuances, as well as other developments that affect our clients’ businesses.
    Tax Advisory and Compliance
    We help you identify the opportunities and pitfalls that can significantly affect your...
    See Overview
    • Tax advisory
      With our knowledge of tax laws and audit procedures, we help safeguard the substantive and procedural rights of taxpayers and prevent unwarranted assessments.
    • Tax compliance
      We aim to minimize the impact of taxation, enabling you to maximize your potential savings and to expand your business.
    • Corporate services
      For clients that want to do business in the Philippines, we assist in determining the appropriate and tax-efficient operating business or investment vehicle and structure to address the objectives of the investor, as well as related incorporation issues.
    • Tax education and advocacy
      Our advocacy work focuses on clarifying the interpretation of laws and regulations, suggesting measures to increasingly ease tax compliance, and protecting taxpayer’s rights.
    Advisory Services
    We believe there is an optimal solution to every business challenge. Using our Firm's breadth and depth of specialized expertise, we work with you to find...
    See Overview
    • Business risk services
      Our business risk services cover a wide range of solutions that assist you in identifying, addressing and monitoring risks in your business. Such solutions include external quality assessments of your Internal Audit activities' conformance with standards as well as evaluating its readiness for such an external assessment.
    • Business consulting services
      Our business consulting services are aimed at addressing concerns in your operations, processes and systems. Using our extensive knowledge of various industries, we can take a close look at your business processes as we create solutions that can help you mitigate risks to meet your objectives, promote efficiency, and beef up controls.
    • Transaction services
      Transaction advisory includes all of our services specifically directed at assisting in investment, mergers and acquisitions, and financing transactions between and among businesses, lenders and governments. Such services include, among others, due diligence reviews, project feasibility studies, financial modelling, model audits and valuation.
    • Forensic advisory
      Our forensic advisory services include assessing your vulnerability to fraud and identifying fraud risk factors, and recommending practical solutions to eliminate the gaps. We also provide investigative services to detect and quantify fraud and corruption and to trace assets and data that may have been lost in a fraud event.
    • Cyber advisory
      Our focus is to help you identify and manage the cyber risks you might be facing within your organization. Our team can provide detailed, actionable insight that incorporates industry best practices and standards to strengthen your cybersecurity position and help you make informed decisions.
    • ProActive Hotline
      Providing support in preventing and detecting fraud by creating a safe and secure whistleblowing system to promote integrity and honesty in the organisation.
    Business Process Solutions
    We provide solid, first-rate support for your key accounting and administrative activities, such as outsourced accounting, payroll, and accounting-related...
    See Overview
    • Accounting services
      At P&A Grant Thornton, we handle accounting services for several companies from a wide range of industries. Our approach is highly flexible. You may opt to outsource all your accounting functions, or pass on to us choice activities.
    • Staff augmentation services
      We offer Staff Augmentation services where our staff, under the direction and supervision of the company’s officers, perform accounting and accounting-related work.
    • Payroll Processing
      Payroll processing services are provided by P&A Grant Thornton Outsourcing Inc. More and more companies are beginning to realize the benefits of outsourcing their noncore activities, and the first to be outsourced is usually the payroll function. Payroll is easy to carve out from the rest of the business since it is usually independent of the other activities or functions within the Accounting Department.
    Japan Desk
    Japan Desk
    See Overview
    Careers
    Careers
    • FAQs
    Careers
    With our unique culture and opportunities, our organisation is a place where you can grow. Wherever you are in your career, we help you to make a difference...
    See Overview
    Why Grant Thornton is a great place to work
    We value each of the 50,000 people in our member firms equally and appreciate every contribution across Grant Thornton.
    See Overview
    • Our values
      Grant Thornton prides itself on being a values-driven organisation and we have more than 38,500 people in over 130 countries who are passionately committed to these values.
    • Global culture
      Our people tell us that our global culture is one of the biggest attractions of a career with Grant Thornton.
    • Learning & development
      At Grant Thornton we believe learning and development opportunities allow you to perform at your best every day. And when you are at your best, we are the best at serving our clients
    • Global talent mobility
      One of the biggest attractions of a career with Grant Thornton is the opportunity to work on cross-border projects all over the world.
    • Diversity
      Diversity helps us meet the demands of a changing world. We value the fact that our people come from all walks of life and that this diversity of experience and perspective makes our organisation stronger as a result.
    • In the community
      Many Grant Thornton member firms provide a range of inspirational and generous services to the communities they serve.
    • Behind the Numbers: People of P&A Grant Thornton
      Discover the inspiring stories of the individuals who make up our vibrant community. From seasoned veterans to fresh faces, the Purple Tribe is a diverse team united by a shared passion.
    Opportunities
    If you wish to develop your talents to the fullest and build a fulfilling career, join P&A Grant Thornton, where you will be part of a dynamic...
    See Overview
    • Fresh Graduates
      Fresh Graduates
    • Students
      Whether you are starting your career as a graduate or school leaver, P&A Grant Thornton can give you a flying start. We are ambitious. Take the fact that we’re the world’s fastest-growing global accountancy organisation. For our people, that means access to a global organisation and the chance to collaborate with more than 40,000 colleagues around the world. And potentially work in different countries and experience other cultures.
    • Experienced hires
      P&A Grant Thornton offers something you can't find anywhere else. This is the opportunity to develop your ideas and thinking while having your efforts recognised from day one. We value the skills and knowledge you bring to Grant Thornton as an experienced professional and look forward to supporting you as you grow you career with our organisation.
    FAQs
    If you would like to join Grant Thornton, you may have a few questions about our organisation, how we do business, our culture and our global opportunities....
    See Overview
    Industries
    Industries
    • Consumer products
    • Education
    • Energy and natural resources
    • Financial services
    • Not for profit
    • Outsourcing
    • Public sector
    • Real estate and construction
    • Technology, media and communications
    • Travel, tourism and leisure
    • Retail industry
    Industries
    By ensuring that our clients are matched with professionals most familiar with their industry, P&A Grant Thornton aims to provide a seamless onboarding...
    See Overview
    Consumer products
    Emerging markets and shifting consumer demand are creating new opportunities in food and beverage, with business leaders investing in new products, markets,...
    See Overview
    Education
    Our vision is to help learning institutions and business organisations go beyond and create powerful learning cultures through technology integration,...
    See Overview
    Energy and natural resources
    Energy markets worldwide are undergoing major changes. P&A Grant Thornton can help you understand and navigate ensuing challenges and make sure you have the...
    See Overview
    Financial services
    Optimism is slowly returning to the global economy, but the financial services industry needs to regain the trust of public and private bodies. To truly go...
    See Overview
    Not for profit
    Across the globe, not for profit organisations are increasingly expected to deliver more, while at the same time facing cuts in government funding and...
    See Overview
    Outsourcing
    The outsourcing industry is one of the fastest growing sectors in the Philippines. Growth in the industry is at an annual average rate of 20%. The industry is...
    See Overview
    Public sector
    Across the globe, countries are moving towards leaner, more commercial, locally focused, and responsive government and public sectors. At P&A Grant Thornton,...
    See Overview
    Real estate and construction
    Opportunity and optimism have emerged within the retail estate and construction industry. At P&A Grant Thornton, it’s our goal to help you benefit from these...
    See Overview
    Technology, media and communications
    At P&A Grant Thornton, we’ll work with you to capitalise on all opportunities, manage the inherent risks the industry has to offer, and provide relevant...
    See Overview
    Travel, tourism and leisure
    Dynamic businesses need to move with speed and purpose if they want to capitalise on opportunities in hospitality and tourism. At P&A Grant Thornton, we know...
    See Overview
    Retail industry
    With operational cost, price competition, and currency volatility, pressure on profits continues to pile on retailers. Advancements in e-commerce are also...
    See Overview
    • Contact us
    • English
    1. Home
    2. Alerts and Publications
    3. Technical Alerts
    4. Tax Alerts
    5. 2016
    6. Stricter rules on transfer of properties

    Tax Alerts

    16 Jun 2016

    Tax Alerts

    • 2024
    • 2023
    • 2022
    • 2021
    • 2020
    • 2019
    • 2018
    • 2017
    • 2012
    • 2013
    • 2014
    • 2016
    • 2015

    Stricter rules on transfer of properties

    (Revenue Memorandum Order No. 24 and 25-2016, June 7 and 12, 2016)

    This Tax Alert is issued to inform all concerned on the stricter rules on the processing of Certificates Authorizing Registration (CAR) and Tax Clearance Certificates (TCL) on transfers of properties.

    The guidelines cover transfers of real properties, transfer of shares not traded in the stock exchange, transfers of properties subject to estate, donor’s or documentary stamp tax, and tax-free exchanges pursuant to Section 40 of the Tax Code involving taxes in excess of P1 million and transactions exempt from capital gains tax (CGT)/Expanded Withholding tax (EWT).

     In addition to the supporting documents required upon application for the issuance of CARs and TCLs covering sale/transfer/assignment of properties under RMO 15- 2003, the parties (buyer/transferor and seller/transferee) may be subjected to audit/investigation to determine their capacity to hold and/or acquire properties.

    The income tax filing of the buyer/seller shall be confirmed from the BIR Integrated Tax System (ITS).  If no income tax return has been filed, the buyer/seller shall submit an affidavit why he is not required to file an income tax return, the sources and amount of income earned. He may also be required to submit other proof of sources of funds such as certificates of creditable and final taxes withheld and loan documents.

    If the buyer is determined to have no financial capacity to purchase the property:

    1.  The transaction shall be deemed a donation, not a sale. Donor’s tax shall be imposed instead of CGT, and a duly executed deed of donation shall be required.
    2. The  buyer/transferee shall be deemed to have undeclared income and deficiency income tax shall be assessed on the amount of consideration for the transfer which cannot be supported by his financial capacity, in case the seller/transferor is a corporation or a stranger to the buyer/transferee.

    If the seller is determined to have no financial capacity to acquire/hold the property being sold:

    1. The RDO may recommend the issuance of a Letter of Authority.
    2. The processing of the CAR/TCL shall nevertheless proceed in accordance with RMO 15-2003.

    In case of applications for ruling on tax-free exchanges under Section 40, the Law Division shall forward the case to the National Investigation Division (NID) for initiation of an audit/investigation.

    .

    RMO 24-2016

    Download PDF [491 kb]
    rich text with download pdf
    Download PDF [491 kb]
    Download PDF [491 kb]

    .

    RMO 25-2016

    Download PDF [234 kb]
    rich text with download pdf
    Download PDF [234 kb]
    Download PDF [234 kb]
    Share this page
    • Facebook
    • Twitter
    • LinkedIn
    • WhatsApp
    • Email

    CONNECT CONNECT

    • Meet Our People
    • Contact us
    • Our heritage
    • Locations

    ABOUT ABOUT

    • Careers
    • News Centre
    • ProActive Hotline

    LEGAL LEGAL

    • Privacy
    • Cookie policy
    • Disclaimer
    • Site map

    Our Core Services Our Core Services

    • Audit and Assurance
    • Tax Advisory and Compliance
    • Advisory Services
    • Outsourcing and Managed Services
    • Japan Desk

    Follow usFollow us

    ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide services to their clients and/or refers to one or more member firms, as the context requires. ‘GTIL’ refers to Grant Thornton International Ltd (GTIL). P&A Grant Thornton is a member firm of GTIL. GTIL and each member firm of GTIL is a separate legal entity. GTIL is a nonpracticing, international coordinating entity organised as a private company limited by guarantee incorporated in England and Wales. GTIL does not deliver services in its own name or at all. Services are delivered by the member firms. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. The name ‘Grant Thornton’, the Grant Thornton logo, including the Mobius symbol/ device are trademarks of GTIL. All copyright is owned by GTIL, including the copyright in the Grant Thornton logo; all rights are reserved.