BIR Processing Timeline for CGT and DST Approval in the Philippines

This article explains how Capital Gains Tax (CGT) and Documentary Stamp Tax (DST) on “one-time transactions” are filed, assessed, and approved by the Bureau of Internal Revenue (BIR), what timelines to expect, and how to keep your case moving. It focuses on sales and transfers of real property and shares of stock not traded on the exchange, in the Philippine setting.

1) What are CGT and DST—and when do they apply?

Capital Gains Tax (CGT)

Real property classified as capital asset (e.g., a house-and-lot used personally, not held for sale in the ordinary course of business): CGT is computed on the higher of the deed price, zonal value (BIR), or fair market value (Assessor).
Shares of stock not traded through the local exchange: CGT applies based on statutory rules for such shares (separate from the stock transaction tax for listed shares).
Not to be confused with ordinary income or corporate income when the property is a stock-in-trade or a business asset (those are not subject to CGT but to income tax/creditable withholding).

Documentary Stamp Tax (DST)

Imposed on documents and instruments—including Deeds of Absolute Sale (real property) and Deeds of Assignment/Transfers (shares).
DST is generally based on the consideration or value of the property right conveyed, using the higher-of-values rule similar to CGT for real property.
For one-time transactions (ONETT), DST is filed using the one-time return for DST (see forms below).

2) Filing deadlines (statutory)

These are calendar deadlines fixed by law/regulation and are independent of BIR processing time.

CGT—Real Property (capital asset): File and pay within 30 calendar days from the date of sale/transfer.
- Installment sales: The initial CGT is typically computed on the downpayment first, with subsequent payments triggering additional CGT filings as collected; keep the schedule of installments ready.
CGT—Unlisted Shares: File and pay within 30 calendar days from the date of sale/transfer.
DST (one-time transactions): File and pay on or before the 5th day following the end of the month when the document was signed/issued.
- Example: A deed executed on March 10 → DST return due on or before April 5.

Late filings incur surcharge, interest, and compromise penalties as provided in the National Internal Revenue Code (NIRC), as amended. Even if you file late, the BIR will not process your eCAR (see below) until all penalties are settled.

3) Where and how to file

Revenue District Office (RDO) with jurisdiction over the location of the property (for real property) or over the seller/transferor (common for shares).
Use the ONETT counters/section of the RDO. Some RDOs operate a separate ONETT facility or queue.
Electronic channels: The BIR’s online payment platforms and eBIRForms are increasingly used, but for ONETT, personal lodgment of documents at the RDO is still the norm to trigger evaluation and eCAR issuance.

4) Required forms & core documents

Forms (check the latest versions at filing time):

CGT—Real Property: BIR Form 1706 (Capital Gains Tax Return—Real Property).
CGT—Unlisted Shares: BIR Form 1707/1707-A (Capital Gains Tax Return—Unlisted Shares).
DST—One-Time Transactions: BIR Form 2000-OT (DST for ONETT).

Typical documentary set (real property):

Deed of Absolute Sale (or Deed of Assignment/Transfer).
Owner’s Duplicate Title (TCT/CCT) & Certified true copy (CTC) from the Registry of Deeds.
Tax Declaration (land and/or improvements) and latest Real Property Tax (RPT) clearance.
TINs of seller(s) and buyer(s); if new, secure TIN before filing.
Proof of payment: CGT and DST returns & receipts (after payment).
IDs/Corporate documents (Secretary’s Cert., Articles, Board Resolutions) if applicable.
Special Power of Attorney / Proof of authority if filed by representative.
Zonal value printout or request number (the ONETT evaluator will verify).
Other BIR-required attachments depending on the fact pattern (e.g., court orders, extrajudicial settlement papers, estate tax eCAR if from an estate, waiver of rights, etc.).

For unlisted shares:

Deed of Sale/Assignment, Stock Certificates, Corporate Secretary’s certification of outstanding shares and par value, Audited Financial Statements of the issuing corporation (for valuation if needed), and proof of payment of CGT/DST.

5) The BIR processing flow (ONETT) and standard timelines

The clock below tracks processing time after you submit a complete set of documents and pay the CGT/DST. In practice, timing varies by RDO workload, valuation issues, and completeness of your file. Use these as planning benchmarks.

Stage A — Lodgment and preliminary check (Day 0 to Day 1)

You (or your representative) submit the CGT return, DST return, and full documentary set at ONETT.
The ONETT desk performs a completeness check and issues a claim stub or reference number.
If documents are incomplete, you receive a deficiency slip and your file does not enter evaluation queue until cured.

Timebox: Same day to 1 working day for a clean filing.

Stage B — Evaluation & valuation (Day 1 to Day 5–10)

Valuation test: The examiner compares the deed price with BIR zonal value and Assessor’s FMV; the highest becomes the tax base (real property).
Verification: TINs, titles, tax declarations, and any special conditions (installments, assumed mortgages, related-party, improvements).
Recomputation (if needed): If the wrong base was used or there are improvements not reflected in the TD, you’ll be assessed for additional CGT/DST.
Clarificatory memo: For shares, the examiner may request financials to support fair value if required.

Timebox: 3 to 10 working days after a complete lodgment, absent complications.

Stage C — Review & approval for eCAR (Day 6 to Day 7–15)

The examiner’s working papers are reviewed by the ONETT reviewer and RDO signatory (or authorized approving officer).
Once cleared, the system generates the eCAR (electronic Certificate Authorizing Registration) for the specific property/parcel (or share block) and parties.

Timebox: 2 to 5 working days for routine cases; longer if there’s a queue or if elevated to the Legal/Assessment division.

Stage D — Releasing of eCAR (± Day 7–15+)

You claim the eCAR upon presentation of the claim stub/ID and any proofs of additional payment (if there were recomputations).
Check the property identifiers (TCT/CCT numbers, area, names) and tax types (CGT, DST) on the face of the eCAR—errors can delay registration.

Timebox: Usually same day once approved; 1–2 days if printing/signature logistics cause lag.

Planning range: From 7 to 15 working days for straightforward cases after complete submission. Complex cases, heavy backlogs, or valuation disputes can push processing to 3–6+ weeks.

6) After eCAR: completing the transfer

Registry of Deeds (ROD): Present the eCAR, deed, owner’s duplicate title, and ROD forms/fees to secure issuance of new title in buyer’s name.
Local Transfer Tax & Registration Fees: Pay at the LGU Treasurer and ROD as required (some jurisdictions require these before ROD accepts; workflows vary).
Assessor’s Office: Update Tax Declarations.

7) Practical timeline map (real property—cash sale)

Day 0: Deed signed.
By Day 30: File and pay CGT (Form 1706).
By 5th day after month-end: File and pay DST (2000-OT).
Day 0–5: Assemble documents; secure fresh CTC of Title and TD.
Day 5–7: Lodge ONETT package at RDO; receive claim stub.
Day 7–15: Evaluation → Approval → eCAR releasing.
Post-eCAR: Set ROD appointment, pay LGU transfer tax/ROD fees, and process new title.

8) Common causes of delay (and how to avoid them)

Incomplete file (missing IDs, TINs, TD for improvements, corporate authorities).
- Tip: Use a pre-filing checklist and label every exhibit.
Mismatch in property particulars (area, lot/block, TCT vs. TD).
- Tip: Align descriptions across deed, title, and TD; correct TD before lodgment if needed.
Valuation gaps (old TD not reflecting improvements, unclear consideration, assumed mortgages).
- Tip: Disclose improvements and provide building permits/occupancy or photos if asked.
Installment mechanics not explained.
- Tip: Attach a payment schedule and computation showing downpayment vs. future tranches.
Unsettled prior taxes (e.g., estate tax for inherited properties, which requires a separate estate eCAR first).
- Tip: Sequence matters: estate eCAR → CGT/DST eCAR for the sale.
RDO backlogs/peak cycles (e.g., seasonality).
- Tip: File early, avoid month-end bunching, and ensure documents are “evaluation-ready.”

9) Special situations affecting timing

Related-party or corporate restructurings: Expect additional review and possible referral to Legal/Assessment.
Judicial/Forced sales: Attach court orders and sheriff’s certificates; timelines depend on completeness of the court record.
Conditional/Deferred transfers: If subject to conditions precedent, clarify when taxable transfer occurs for purposes of counting the 30-day CGT clock.
Property with improvements not yet on TD: BIR may impute value; resolving TD updates can add weeks.
Multiple parcels / condominium with parking units: Each eCAR is property-specific; batching can lengthen processing.

10) How the BIR measures completeness (what “stops the clock”)

BIR ONETT generally treats the case as “ready for evaluation” only when:

Correct forms are used and properly filled out;
Payments for CGT and DST have been made;
The documentary set is complete and consistent; and
Any prior conditions (e.g., estate settlement) are evidenced.

If a deficiency notice is issued, the file is pended. Processing time effectively pauses until the deficiency is cured.

11) Penalties at a glance (why timing matters)

Late CGT/DST filing or payment triggers surcharge, interest, and compromise penalties under the NIRC (as amended).
Practical impact: Even small delays can be costly, and the eCAR will not be released until all additional assessments (including penalties) are settled.

12) Working with representatives

A Special Power of Attorney (SPA) with explicit ONETT authority is standard when engaging a representative.
Provide original IDs for verification (or certified copies) and ensure the SPA matches the names/TINs on the deed.

13) Shares of stock (unlisted): timeline notes

Same 30-day CGT clock from transfer date.
DST also applies to the deed/assignment.
Valuation may rely on book value/fair value and corporate certifications; expect clarificatory requests for financials.
Transfer in the Stock & Transfer Book (STB) of the issuing corporation requires the BIR eCAR; coordinate early with the Corporate Secretary to avoid post-eCAR bottlenecks.

14) Document hygiene & pro tips

One property, one eCAR. If your deed covers multiple parcels, expect multiple eCARs—prepare parcel-level attachments.
Name consistency across IDs, TINs, deed, and title prevents last-mile edits.
Zonal value snapshots: Bring the latest zonal value page or reference; the examiner will verify, but being ready speeds evaluation.
Staple a computation sheet (your own) mirroring BIR formulas; it makes recomputation faster if the base changes.
Track your file: Keep the claim stub/control number, evaluator’s name, and follow-up window.

15) Quick checklists

Real Property—CGT/DST ONETT

BIR Forms 1706 (CGT) & 2000-OT (DST) + proof of payment
Deed of Absolute Sale / Transfer
TCT/CCT (owner’s duplicate) + CTC from ROD
Latest Tax Declarations (land & improvements) + RPT clearance
IDs & TINs of all parties
Corporate papers / SPA (if applicable)
Zonal value / FMV references
Installment schedule (if applicable)
Any prior eCAR (e.g., estate) or court orders (if applicable)

Unlisted Shares—CGT/DST ONETT

BIR Forms 1707/1707-A (CGT) & 2000-OT (DST) + proof of payment
Deed of Sale/Assignment + Stock Certificates
Cert. from Corporate Secretary (outstanding shares, par value, STB status)
Latest AFS/financials (if valuation needed)
IDs & TINs; corporate papers / SPA

16) Bottom line on timelines

Statutory filing clocks: 30 days for CGT; on/before the 5th day after month-end for DST.
BIR processing (post-filing): ~7–15 working days from complete lodgment to eCAR release for straightforward cases; allow 3–6+ weeks if complex or during peak periods.
No eCAR, no transfer: Registry (ROD) and corporate STB require a valid eCAR.

Disclaimer

This article provides general, practice-oriented guidance in the Philippine context. Specific facts, updated forms, and RDO-level procedures can change. For significant transactions or unusual fact patterns, consult a Philippine tax professional and verify the current BIR requirements before filing.