Revenue Regulation No.

14-2000

Issued December 29, 2000 amends Sections 3(2), 3 and 6 of RR No. 13-99 relative to the sale, exchange or disposition by a natural person of his "principal residence". The residential address shown in the latest income tax return filed by the vendor/transferor immediately preceding the date of sale of said real property shall be treated, for purposes of these Regulations, as a conclusive presumption about his true residential address, the certification of the Barangay Chairman, or Building Administrator (in case of condominium unit), to the contrary notwithstanding, in accordance with the doctrine of admission against interest or the principle of estoppel. The seller/transferor's compliance with the preliminary conditions for exemption from the 6% capital gains tax under Sec. 3(1) and (2) of the Regulations will be sufficient basis for the RDO to approve and issue the Certificate Authorizing Registration (CAR) or Tax Clearance Certificate (TCC) of the principal residence sold, exchanged or disposed by the aforesaid taxpayer. Said CAR or TCC shall state that the said sale, exchange or disposition of the taxpayer's principal residence is exempt from capital gains tax pursuant to Sec. 24 (D)(2) of the Tax Code, but subject to compliance with the post-reporting requirements imposed under Sec. 3(3) of the Regulations.

Revenue Regulation No. 13-99 Issued September 14, 1999 prescribes the regulations for the exemption of a citizen or a resident alien individual from the payment of the 6% Capital Gains Tax on the sale, exchange or disposition of his principal residence. In order for a person to be exempted from the payment of the tax, he should submit, together with the required documents, a Sworn Declaration of his intent to avail of the tax exemption to the Revenue District Office having jurisdiction over the location of his principal residence within (30) days from the date of the sale, exchange or disposition of the principal residence. The proceeds from the sale, exchange or disposition of the principal residence must be fully utilized in acquiring or constructing the new principal residence within eighteen (18) calendar months from the date of the sale, exchange or disposition. In case the entire proceeds of the sale is not utilized for the purchase or construction of a new principal residence, the Capital Gains Tax will be computed based on the formula specified in the Regulations. If the seller fails to utilize the proceeds of sale or disposition in full or in part within the 18-month reglementary period, his right of exemption from the Capital Gains Tax did not arise on the extent of the unutilized amount, in which event, the tax due thereon will immediately become due and demandable on the 31st day after the date of the sale, exchange or disposition of the principal residence. If the individual taxpayer's principal residence is disposed in exchange for a condominium unit, the disposition of the taxpayer's principal residence will not be subjected to the Capital Gains Tax herein prescribed, provided that the said condominium unit received in the exchange will be used by the taxpayer-transferor as his new principal residence.