​​

What are the taxes and government fees that should be paid to transfer the title from the seller to the buyer? 

To transfer the title under the name of the buyer, the taxes and fees that should be paid are the following:

 

• Capital Gains Tax

• Documentary Stamp Tax

• Transfer Tax

• Real Property Tax

• Registration Fee

 

What is Capital Gains Tax?

Capital Gains Tax is a final tax assessed on the presumed gain derived from the sale of real property.

 

What is the rate of Capital Gains Tax for the sale of real property?

The rate of Capital Gains Tax is six percent (6%) based on the gross selling price of the property or its zonal value, whichever is higher.

 

How can we know the gross selling price of the sale of real property?

The gross selling price of the sale of real property is found in the deed of absolute sale.

 

How can we know the zonal value of the real property? 

The zonal value of real properties in the Philippines can be seen at the website of the Bureau of Internal Revenue.

 

How to know the fair market value as shown in the schedule of values of the Provincial or City Assessors?

This can be found at the declaration of real property or Tax Declaration issued by the Assessor’s Office of the city or municipality.

 

Who is liable to pay for the Capital Gains Tax?

The seller shall be liable to pay for the Capital Gains Tax because the seller is the one who gained from the sale of the real estate. But sometimes, through a stipulation in the deed of sale, the obligation to pay the capital gains tax is transferred to the buyer.

 

What is a Documentary Stamp Tax in relation to a sale of real property?

In relation to the sale of real property, Documentary Stamp Tax is a tax on documents or papers evidencing the sale or transfer of real property.

 

What is the basis for the rate of the Documentary Stamp Tax?

The rate of Documentary Stamp Tax is based on the consideration of the sale of real property or its fair market value, whichever is higher.

 

For each one thousand pesos (Php1,000) in the consideration of the sale, or fractional part thereof, the Documentary Stamp Tax is fifteen pesos (Php15.00).

 

Who is liable to pay for the Documentary Stamp Tax?

All the parties to the sale of real property are liable to pay the documentary stamp tax, unless the parties agree otherwise.

 

What is a transfer tax?

A transfer tax is a tax on the transfer of real property imposed by the Local Government Unit.

 

What is the tax rate for the transfer tax?

It depends on the local government unit concerned. A local government unit may impose a tax on the sale of real property at the rate of not more than fifty percent (50%) of the one percent (1%) of the total consideration involved in the sale of real property or its fair market value, whichever is higher. In simple terms, not more than (0.5%).

 

Where to get the fair market value for purposes of transfer tax?

The fair market value shall be reflected in the prevailing schedule of fair market values enacted by the local government unit.

 

Who is liable to pay the transfer tax?

The seller shall be liable to pay the transfer tax, unless there is a contrary stipulation in the deed of sale.

 

Where to pay the transfer tax?

The transfer tax shall be paid at the Treasurer’s Office of the city or municipality where the real property is located.

 

What is a Registration Fee?

The Registration Fee is a fee for the registration of a deed of sale in the Registry of Deeds.

 

How much is the Registration Fee?

The registration fee depends on the value of the consideration.

 

How to know the amount of Registration Fee? 

The amount of Registration Fee can be found in the schedule of fees of the Land Registration Authority.

 

When are the deadlines to settle the fees and taxes for the transfer of title?

 

• Capital Gains Tax shall be paid within thirty (30) days from the date of sale.

• Documentary Stamp Tax shall be paid within five (5) days after the close of the month when the sale was made.

• Transfer Tax shall be paid within sixty (60) days from the date of the execution of the deed of sale.

taxes

​

What will happen if the fees and taxes are not paid within the given deadlines?

Penalties and fines may incur if the taxes and fees due are not paid on time. 

​

​

If you need assistance in transferring titles, Barrister Realty can help. Contact us. 

​

Barrister Realty is a full-service real estate and brokerage firm, composed of lawyers, realtors, and a dynamic sales team. 

For questions, you may contact us at:

​

        info@barristerrealtyph.com

        (+63) 954-997-3832