*. Office of the exerciary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JAN 27 P2:07 SENATE RECEIVED BY. 1711 S. No. - Introduced by Senator MARK A. VILLAR AN ACT FIXING THE DEADLINE FOR THE PAYMENT OF TRANSFER TAX OF REAL PROPERTY, AMENDING SECTION 135 OF REPUBLIC ACT NO. 7160 OR "THE LOCAL GOVERNMENT CODE OF 1991" EXPLANATORY NOTE
Section 135 of Republic Act No. 7160 or the "Local Government Code of 1991",
as amended, authorizes local governments to levy a local transfer tax (LTT) on the sale, donation, barter, or other modes of transferring real property ownership. For transfers by way of succession, the tax must be paid by the executor or administrator within sixty (60) days from the decedent's death. Under Section 168 of the same law, surcharges and interest may be imposed on late payments of LTT. Meanwhile, the National Internal Revenue Code (NIRC) of 1997, as amended, imposes an estate tax on the privilege of transferring property upon death, which is payable within one (1) year of the decedent's death. Despite differing deadlines on the same subject matter, both taxes are often paid simultaneously for practical purposes. More often than not, this would result in penalties on the LTT that unduly burden heirs. Thus, this bill seeks to align the deadline to pay LTT on transfers by way of succession with that of estate tax—from sixty (60) days from the decedent's death to one (1) year. In this way, the hardships faced by heirs may be somewhat relieved by minimizing their exposure to penalties on LTT. In view of the foregoing, the approval of this bill is earnestly sought. Tal Nello MARK A. VILLAR ROC
Selate Office of the scarlarp TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) First Regular Session ) 26 JAN 27 P2:07 SENATE RECEIVED BY. S. No. 1711 Introduced by Senator MARK A. VILLAR AN ACT FIXING THE DEADLINE FOR THE PAYMENT OF TRANSFER TAX OF REAL PROPERTY, AMENDING SECTION 135 OF REPUBLIC ACT NO. 7160 OR "THE LOCAL GOVERNMENT CODE OF 1991" Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Section 135, Chapter 2, Title I, Book II of Republic Act No. 7160 or
2 the "Local Government Code of 1991", as amended, is hereby amended to read as follows: "SECTION 135. Tax on Transfer of Real Property Ownership. - (a) The province may impose a tax on the sale, donation, barter, or on any other mode of transferring ownership or title of real property at the rate of not more than fifty percent (50%) of the one percent (1%) of the total consideration involved in the acquisition of the property or of the fair market value in case the monetary consideration involved in the transfer is not substantial, whichever is higher. The sale, transfer or other disposition of real property pursuant to R.A. No. 6657 shall be exempt from this tax. (b) For this purpose, the Register of Deeds of the province concerned shall, before registering any deed, require the presentation of the evidence of payment of this tax. The provincial assessor shall likewise
make the same requirement before cancelling an old tax declaration and issuing a new one in place thereof. Notaries public shall furnish the provincial treasurer with a copy of any deed transferring ownership or title to any real property within thirty (30) days from the date of notarization. It shall be the duty of the seller, donor, OR transferor t, executor or administrator, to pay the tax herein imposed within sixty (60) days from the date of the execution of the deed [or from the date of the decedent's death]. IN CASE OF TRANSFERS BY WAY OF SUCCESSION, THE TAX HEREIN IMPOSED SHALL BE PAID BY THE EXECUTOR, ADMINISTRATOR, OR THE HEIRS WITHIN ONE (1) YEAR FROM THE DECEDENT'S DEATH."
Sec. 2. Separability Clause. - Should any provision of this Act or any part thereof
be declared invalid, the other provisions, so far as they are separable from the invalid ones, shall remain in force and effect.
Sec. 3. Repealing Clause. - All laws, presidential decrees, executive orders,
proclamations and/ or administrative regulations which are inconsistent with the provisions of this Act are hereby amended, modified, superseded or repealed.
Sec. 4. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation in the Philippines. Approvea,