How to Pay Donor's Tax and Get an eCAR When Donating Real Property: A Worked Example

Donating real property in the Philippines triggers donor’s tax, due within 30 days of the deed of donation, computed on the property’s fair market value rather than a cash amount. Unlike a cash gift, a real property donation is filed through the BIR’s eONETT system and does not conclude until the BIR releases an Electronic Certificate Authorizing Registration (eCAR) — the document the Registry of Deeds requires before it will transfer title into the donee’s name.

How a real property donation differs from a cash donation for BIR purposes #

A donation of real property runs on the same donor’s tax rate and exemption as a cash donation but adds two steps cash never triggers: a fair-market-value computation and an eCAR. As covered in RMC No. 10-2026’s treatment of purely cash donations, donor’s tax is a flat 6% on total net gifts exceeding ₱250,000 per donor per calendar year, under NIRC Section 99 as amended by the TRAIN Law (Republic Act No. 10963). That rate and threshold apply equally to real property. What changes is the base the tax is computed on — cash has an obvious peso value, but real property does not, so the BIR requires a valuation step — and the fact that title to real property sits in a government registry, so a Registry of Deeds needs proof taxes were paid before it will record the donee as the new owner. Cash carries no such registry entry, which is exactly why RMC No. 10-2026 confirms an eCAR is not required for a purely cash gift.

For the general donor’s tax filing mechanics — BIR Form 1800, the annual exemption, and how net gifts are computed — see BIR Form 1800: Donor’s Tax Return Rates, Deadlines, and Filing Requirements. This post focuses on what’s specific to a real property donation: valuing the property, filing through eONETT, and getting the eCAR.

How to value the real property you’re donating #

Donated real property is valued at whichever is higher: the BIR zonal value for that location, or the fair market value shown on the local assessor’s schedule, both taken as of the date the donation is made. This is the same higher-of-the-two rule the BIR uses for capital gains tax on a property sale — see BIR Zonal Value: What It Is and How to Look It Up for how zonal values are set and found. There is no separate, lower valuation standard for a gift; the BIR treats the transfer of a piece of land or a house-and-lot the same way for valuation purposes whether it changes hands by sale or by donation, even though the tax that applies (capital gains tax versus donor’s tax) differs.

In practice this means a donor cannot rely on a low assessed value or an informal estimate to shrink the donor’s tax base. Before filing, pull the current zonal value for the property’s location and the assessor’s fair market value from the tax declaration, and use whichever figure is higher as the gross value of the gift before the ₱250,000 annual exemption is applied.

Filing the donation through eONETT step by step #

A real property donation is filed through the BIR’s Electronic One-Time Transaction (eONETT) system — the same platform used for property sales — end to end online, from account creation through eCAR tracking. As How to Use the BIR eONETT System describes for a sale, eONETT was introduced through RMC No. 10-2023 and RMO No. 7-2023, and covers donor’s tax filings alongside capital gains tax, documentary stamp tax, and estate tax. The donation-specific flow follows the same stages:

1. Create or log in to an eONETT account at eonett.bir.gov.ph, using a valid email address that receives OCS and payment confirmations.
2. Start a new ONETT application and select the donation transaction type. Enter the property’s location, classification, and area; the donor’s and donee’s TINs and contact details; and the date the deed of donation was notarized.
3. Let the system generate the ONETT Computation Sheet (OCS). Based on the property’s zonal value and the assessor’s fair market value, eONETT computes the gross gift, applies the ₱250,000 annual exemption, and shows the donor’s tax due.
4. Upload the notarized Deed of Donation and supporting documents — typically the certified true copy of the title, the tax declaration, valid IDs for donor and donee, and each party’s TIN — under the application’s document tab.
5. Pay the donor’s tax due (and any applicable documentary stamp tax) through the payment channel eONETT offers, or through an Authorized Agent Bank if you’re paying manually.
6. Download the Claim Slip once the application validates, as your proof the filing and payment went through.
7. Claim the eCAR at the RDO with jurisdiction over the donor’s residence (for an individual donor) or where the donor is registered (for a juridical donor) — not the RDO where the property is located. This is a real point of difference from a property sale, where the eCAR is released by the RDO covering the property itself.

RMC No. 56-2024, the same circular that confirmed the sale-side jurisdiction rule, frames eONETT’s role for these transactions plainly. As reported by Grant Thornton Philippines:

“Taxpayers may opt to utilize the electronic One-Time Transaction (eONETT) system for the application of eCAR issuance, which is accessible anytime and anywhere, subject to internet connection availability.”

— Grant Thornton Philippines, describing RMC No. 56-2024

A worked example: donating a ₱3,000,000 residential lot to your child #

A parent donates a residential lot with a BIR zonal value of ₱3,000,000 to their adult child in 2026, with no other gifts made earlier in the year. Applying the same 6% rate and ₱250,000 exemption used for cash donations, but on the property’s zonal value instead of a cash figure, produces the following:

The parent files the eONETT application, uploads the required documents, and pays the ₱165,000 donor’s tax due. Once the BIR validates the filing, the parent claims the eCAR at the RDO covering their own residence — not the RDO where the lot sits — and only then can the child bring the eCAR, the Deed of Donation, and the title to the Registry of Deeds to have the lot registered in their name.

What to expect after filing: processing time and the eCAR #

Once an eONETT donation application and its documents are complete, the BIR generally quotes a processing window of roughly 5 to 20 working days for the eCAR to be released, though donor’s tax cases involving larger estates or valuation questions can take longer. The eCAR itself is proof that the applicable transfer taxes on the donation — donor’s tax, plus any documentary stamp tax that applies to the transfer — have been paid, and it is the specific document the Registry of Deeds asks for before it will cancel the donor’s title and issue a new one in the donee’s name.

A donation filing that stalls past that window is usually traceable to an incomplete document set, a valuation on the OCS that doesn’t match the deed of donation, or a title with an unresolved lien or annotation. Confirming the zonal value and assessor’s fair market value before filing, and making sure the deed of donation’s property description matches the title exactly, avoids most of these delays.

Frequently asked questions #

Do I have to use eONETT to file donor’s tax on a real property donation? #

The BIR’s Electronic One-Time Transaction (eONETT) system is the platform the BIR built for processing donations, sales, and other one-time property transfers online, including donor’s tax filings that end in an eCAR. While RMC No. 56-2024 frames eONETT use as an option taxpayers “may opt to utilize,” it is the standard channel donors and their representatives use in practice to file BIR Form 1800, pay donor’s tax, and track the eCAR for a real property donation, rather than handling the transaction entirely at an RDO counter.

How is the fair market value of donated real property determined for donor’s tax? #

Real property donated to another person is valued at whichever is higher: the BIR zonal value for the property’s location, or the fair market value shown on the provincial or city assessor’s schedule (the value used to compute real property tax) at the time the donation is made. This is the same higher-of-the-two valuation principle the BIR applies to capital gains tax on real property sales.

Do I need an eCAR to transfer title after donating real property? #

Yes. The Registry of Deeds will not process a transfer of title into the donee’s name without an Electronic Certificate Authorizing Registration (eCAR), which the BIR issues only after donor’s tax (and any applicable documentary stamp tax) on the donation has been filed and paid. This is a key difference from a purely cash donation, which under RMC No. 10-2026 does not require an eCAR at all.

Which RDO processes the eCAR for a donation of real property? #

The eCAR for a donation is processed by the Revenue District Office (RDO) with jurisdiction over the donor’s residence if the donor is an individual, or the RDO where the donor is registered if the donor is a non-individual entity — not the RDO covering the property’s location. This is a notable contrast with a property sale, where the eCAR is released by the RDO covering where the property sits.

How long does it take to get an eCAR after filing a donation through eONETT? #

The BIR generally quotes a processing window of roughly 5 to 20 working days for routine eONETT applications once a complete filing and full documentary requirements are submitted. Donor’s tax cases and larger or more complex estates can take longer, particularly if the submitted valuation, deed of donation, or supporting documents need correction or additional review.

Summary #

Donating real property carries the same 6% donor’s tax on net gifts over ₱250,000 that applies to cash donations, but adds two steps a cash gift never involves: valuing the property at the higher of its BIR zonal value or the assessor’s fair market value, and clearing an eCAR before the Registry of Deeds will transfer title. File through eONETT — the same platform used for property sales — uploading the notarized Deed of Donation and supporting documents, paying the donor’s tax due, and claiming the eCAR from the RDO with jurisdiction over the donor’s residence, not the property’s location. Budget roughly 5 to 20 working days for processing once the filing is complete. For the cash-donation compliance rules that don’t apply here, see RMC No. 10-2026 on cash donations; for the eONETT mechanics shared with a property sale, see How to Use the BIR eONETT System.