May 2, 2001
DAR OPINION NO. 03-01
Rev. Fr. Romeo A. Dompor
PARCCOM Chairperson — Bohol
DAR-Provincial Office
Gallares St. Tagbilaran City
Dear Fr. Dompor:
This refers to Resolution No. 1, Series of 1999 dated 26 March 1999 of PARCCOM Bohol wherein you are requesting the Department of Agrarian Reform (DAR) to formulate and issue appropriate guidelines on who shall pay the taxes due on a landholding covered by CARP during the interim period from the time the land is transferred to the Republic of the Philippines (RP) up to the time the Certificates of Land Ownership Award (CLOAs) are registered in the name of the farmer-beneficiaries.
The answer to your query is found under Section 66 of R.A. No. 6657 (otherwise known as the Comprehensive Agrarian Reform Law or CARL) which provides, quote:
"SECTION 66. Exemptions from Taxes and Fees of Land Transfers. — Transactions under this Act involving a transfer of ownership, whether from natural or juridical persons, shall be exempted from taxes arising from capital gains. These transactions shall also be exempted from the payment of registration fees, and all other taxes and fees for the conveyance or transfer thereof; Provided, that all arrearages in real property taxes, without penalty or interest, shall be deductible from the compensation to which the owner may be entitled."
Based on the foregoing, it is our considered opinion that transactions involving the transfer of lands which are CARP-related or connected are deemed exempt from the payment of taxes and fees contemplated therein. But with respect to the real property taxes from the time the landholding are transferred to the Republic of the Philippines up to the time CLOAs are generated and registered in the name of the farmer beneficiaries, they shall be deemed exempt as, meanwhile, the owner is the government itself.
Thank you for communicating with us and we hope to have clarified you on the matter.
Very truly yours,
(SGD.) VIRGILIO R. DE LOS REYES
Undersecretary for Legal Affairs, and Policy and Planning
Copy furnished:
Lucille G. Capistrano
Chief, CPCMS
PARC Secretariat