Tax Alert No. 43 [BIR Bank Bulletin No. 2019-09 dated 2 May 2019]

Encoding of the Buyer’s Name and Taxpayer’s Identification Number for Transfer Tax Payment of BIR Form 1606 (Withholding Tax Remittance Return for Onerous Transfer of Real Property Other than Capital Asset, including taxable and exempt) 

The Commissioner of Internal Revenue has issued Bank Bulletin No. 2019-09 dated 2 May 2019, advising all Authorized Agent Banks (“AAB”) that the proper encoding of BIR Form 1606 for the payment of the transfer tax should be in the name and Taxpayer’s Identification Number (“TIN”) of the buyer, instead of the name and TIN of the seller, even if it was the latter who paid the corresponding tax due. The said return is filed by every Withholding Agent/Buyer on the sale, transfer or exchange of real property classified as ordinary asset.

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