REVENUE MEMORANDUM ORDER NO. 25-2016 supplements the rules on the investigation of parties in transactions involving the transfer/assignment/sale of properties

REVENUE MEMORANDUM ORDER NO. 25-2016 

Summary

This RMO is being issued as a supplement to the guidelines provided for in RMO 24-2016

If there will no proof of financial capacity to acquire the property.

1.  The transaction is not a sale but a donation and a Deed of Donation shall be required.
2.  Pay the taxes on the transfer of property and buyer needs to pay income taxes 

Below is the full text of RMO 25-2016

REVENUE MEMORANDUM ORDER NO. 24-2016 prescribes the guidelines and procedures in the conduct of investigation of parties in transactions involving the transfer/assignment/sale of properties.

REVENUE MEMORANDUM ORDER NO. 24-2016 .

 Summary

 Parties to the said transactions may be subjected to an audit or investigation to determine their capacity to hold and/or acquire properties.

 If it is determined that the seller and buyer has no capacity to acquire the property.

 The procedures and requirements contained in this issuance shall be mandatory on

 1. sale/transfer/assignment of stocks not traded in the Stocks Exchange and other ONETT transactions involving tax payments of at least One Million (P1,000,000)

 2. transactions exempted from Capital Gains Tax/Expanded Withholding Tax (e.g. tax-free exchange under Section 40 (c)(2) of the NIRC of 1997).

Below is the full text of RMO 24-2016