In the Philippine legal and tax landscape, the Electronic Certificate Authorizing Registration (eCAR) is a critical document. It serves as proof that the appropriate taxes on the transfer of real or personal property—such as Capital Gains Tax (CGT), Estate Tax, Donor’s Tax, or Documentary Stamp Tax (DST)—have been fully paid to the Bureau of Internal Revenue (BIR).

Without an eCAR, the Register of Deeds cannot issue a new Transfer Certificate of Title (TCT), and the Corporate Secretary cannot record the transfer of shares of stock in the Stock and Transfer Book.

1. Scope and Purpose

The eCAR system was introduced to replace the manually issued CAR to enhance security and prevent the use of forged certificates. It features a unique barcode and QR code for verification. It is mandatory for:

Sale of Real Property: Classified as capital assets or ordinary assets.
Donations: Transfers of property through a Deed of Donation.
Succession: Transfer of property from a decedent to heirs (Estate Tax).
Sale of Shares of Stock: For shares not traded through a local stock exchange.

2. Preliminary Steps: Tax Filing and Payment

Before applying for the eCAR, the underlying taxes must be settled.

Determine the Tax Type: Identify if the transaction is a sale (6% CGT), a donation (6% Donor's Tax), or an inheritance (6% Estate Tax).
File Tax Returns: Use the eBIRForms offline package to prepare the relevant returns (e.g., Form 1706 for CGT, Form 1801 for Estate Tax, Form 2000-OT for DST).
Payment: Pay the taxes through Authorized Agent Banks (AABs) under the jurisdiction of the concerned Revenue District Office (RDO) or through electronic payment channels (GCash, Maya, LinkBiz).

3. Mandatory Documentary Requirements

The requirements vary depending on the nature of the transfer, but the "Standard Checklist" generally includes:

General Requirements:

Tax Returns (Form 1706, 1801, 1800, etc.) with proof of payment.
Notarized Deed of Conveyance (e.g., Deed of Absolute Sale, Deed of Extrajudicial Settlement).
Certified True Copy of the Title (TCT/CCT/OCT) from the Register of Deeds.
Certified True Copy of the Latest Tax Declaration for land and improvements.
Tax Clearance from the Local Government Unit (LGU) regarding Real Property Tax.
Vicinity Map if the zonal value cannot be readily determined.

For Shares of Stock:

Proof of cost/acquisition of shares.
Audited Financial Statements of the issuing corporation at the time of sale.

4. The Application Process

Step 1: Submission to the RDO

Apply at the Revenue District Office (RDO) having jurisdiction over the location of the property. For shares of stock, it is the RDO where the seller is registered or where the corporation’s head office is located.

Step 2: Evaluation and Audit

The BIR Revenue Officer will examine the submitted documents to ensure the "Gross Selling Price" or "Fair Market Value" (whichever is higher) was used as the tax base. If there is a deficiency, the officer will issue a notice for additional payment.

Step 3: Payment of Certification Fee

A Certification Fee (currently Php 100.00) and a Documentary Stamp Tax (Php 30.00) for the certificate itself must be paid. This is usually done via a separate BIR Form 0605.

Step 4: Issuance of the eCAR

Once the audit is complete and all fees are settled, the RDO will generate the eCAR. The processing time typically ranges from five (5) to fifteen (15) working days, depending on the complexity of the transaction and the volume of applications in the RDO.

5. Validity and Verification

Validity: An eCAR is valid for one (1) year from the date of issue for purposes of presenting it to the Register of Deeds. If it expires, a request for revalidation must be filed.
Security: The document contains a 16-digit barcode. Stakeholders can verify the authenticity of an eCAR through the BIR’s online verification portal to ensure the document is not fraudulent.

6. Common Pitfalls to Avoid

Incorrect Zonal Values: Always check the latest BIR Zonal Valuation. If the price in the Deed is lower than the Zonal Value or the Assessed Value in the Tax Declaration, the BIR will compute tax based on the highest value. Expired Notarization: Ensure the Deed of Sale is recently notarized. Significant delays between notarization and filing can lead to heavy penalties and interest (25% surcharge + 12% interest per annum). Missing BIR Map: If the property is a portion of a larger lot, a subdivision plan or technical description is necessary.