ECAR - Electronic Certificate Authorizing Registration

By HivePropertyHub.com

eCAR

An eCAR is one of the most important documents in a real estate transfer. It confirms that the transaction has been properly taxed.

It is also often associated with the largest tax payment required when transferring property ownership.

Let's learn about the eCAR.

What is it?

What is an eCAR?

The Electronic Certificate Authorizing Registration (eCAR) is an official document issued by the Bureau of Internal Revenue (BIR).

It confirms that the taxes required for a property transfer have been properly assessed and paid.

The eCAR serves as the BIR's clearance allowing the transfer of ownership to proceed.

Why is it important?

Why Do You Need an eCAR?

  • The eCAR serves as clearance from the Bureau of Internal Revenue.
  • Without it, ownership transfer cannot be completed.
  • The Registry of Deeds may reject the registration process.
  • The buyer cannot register the property under their name.
  • The title transfer process cannot move forward.
When is it needed?

Common Situations Requiring an eCAR

1

Sale of Property

When ownership is transferred through a Deed of Absolute Sale.

2

Donation of Property

When a property is transferred as a gift through a Deed of Donation.

3

Inheritance

When heirs transfer ownership after the death of the owner.

Requirements

Documents Needed for an eCAR

Transaction Documents

  • Notarized Deed of Absolute Sale
  • Notarized Deed of Donation
  • Extrajudicial Settlement Documents (if applicable)

Property Documents

  • Certified True Copy of the Title
  • Latest Tax Declaration
  • Tax Clearance or Latest Real Property Tax Receipt
  • Certificate of Non-Tenancy from Property Management

Other Requirements

  • Valid IDs of Buyer and Seller
  • TIN Verification of all parties
  • Photos of the property
  • Zonal Value Verification
Process

How to Obtain an eCAR

1

Prepare Documents

Gather all required transaction and property documents.

2

Submit to BIR

Submit documents to the proper BIR Revenue District Office (ONETT).

3

Tax Evaluation

BIR evaluates the taxes due for the transaction.

4

Pay Taxes

Pay Capital Gains Tax and Documentary Stamp Tax.

5

Submit Proof of Payment

Provide official receipts and proof of payment.

6

BIR Processing

BIR reviews and processes the submitted documents.

7

Release of eCAR

The Electronic Certificate Authorizing Registration is issued.

Processing time varies depending on the BIR office handling the transaction.

Taxes Related to eCAR

Taxes Commonly Paid During Property Transfer

₱

Capital Gains Tax (CGT)

Usually 6% of the highest value among:

  • Selling Price
  • Zonal Value
  • Fair Market Value
₱

Documentary Stamp Tax (DST)

Usually 1.5% of the taxable value.

Important Tips

Tips When Processing an eCAR

  • Pay BIR taxes within 30 days after notarization.
  • Ensure property details match between the Title and Tax Declaration.
  • Real Property Tax payments should be updated for the current year.
  • Certificate of Non-Tenancy should be updated to the current month.
  • Pay taxes through the appropriate BIR office where the property is located or where the taxpayer is properly registered.
  • Check whether the property is used in business, as VAT may apply.
Final Thoughts

Knowledge is one of the most valuable investments you can make.

Sometimes it is even more important than the property itself.

The more you understand how real estate works, the better protected you become as an owner, seller, or buyer.

Always invest in yourself.

Stay curious. Keep learning. Explore more educational resources and guides, or post your property at ManilaOpenHouse.com.

Next Topic? Tell us.