Documents Needed for Capital Gains Tax & Transfer of Title

CAPITAL GAINS TAX

 (1) Original copy and (2) photocopies of the notarized Deed of Absolute Sale (DAS)
 (1) Owner’s duplicate copy and (2) photocopies of the Transfer Certificate of Title (TCT)
 (1) Certified True Copies and (2) photocopies of the latest Tax Declaration and Certificate
of No Improvement

 Tax Identification Numbers (TIN) of the Seller and Buyer

Transfer of Title

 Official Receipt of Payment of Real Property Tax and Special Education Fund Tax for
the current year (2019)
 (1) Original Copy of the Tax Clearance
Here’s a 6-step guide to help you process the transfer of your land title:

1. File and secure the required documents at the Office of the Bureau of Internal
Revenue Regional District (BIR RDO)

Before making your way to the office, make sure you have secured the complete list of all necessary
documents. Bring hard copies of the required documents below:

 (1) Original copy and (2) photocopies of the notarized Deed of Absolute Sale (DAS)
 (1) Owner’s duplicate copy and (2) photocopies of the Transfer Certificate of Title
 (1) Certified True Copies and (2) photocopies of the latest Tax Declaration for land and
improvement of the real property. *NOTE: If the property sold is a vacant lot or no
improvements have been made on it, a Sworn Declaration of No Improvement by at least
one of the transferees or Certificate of No Improvement issued by the city or municipal
assessor is required
 Tax Identification Numbers (TIN) of the Seller and Buyer

2. Secure assessment of transfer taxes at the BIR and Authorized Agent Bank (AAB) OR
Municipal OR City Treasurer’s Office

After filing the required documents, a BIR representative will calculate your Capital Gains Tax (CGT) and
Documentary Stamp Tax (DST). Afterwards, they will ask you to sign three (3) copies each of the ff:

 BIR Form 1706 (CGT)

 BIR Form 2000 (DST)

These will then be filed at the AAB. For areas where there are no AABs, they will be filed with the
Authorized City or Municipal Treasurer.

3. File documents at the BIR for the issuance of Certificate Authorizing Registration
(CAR) OR BIR Clearance

You will receive a claim slip with the claim date of the CAR, which will be released along with the following
documents:

 Original copy of the Deed of Absolute Sale, stamped as received by the BIR
 Owner’s Duplicate Copy of the TCT or the CCT
 Original copies of the BIR Form 1706 (CGT) and Form 2000 (DST), stamped as received by
the BIR
 Copies of the Tax Declaration for land and improvement

According to BIR Memorandum Order No. 15-03, BIR RDOs should release CARs for all One Time
Transaction (ONETT) within five (5) days of submitting all required documents.

4. Pay the Transfer Taxes and secure the Tax Clearance at the Local Treasurer’s Office

Aside from paying the Transfer Tax, you also need to secure the following documents for the issuance of
the Tax Clearance:

 (1) Original copy and (1) photocopy of the Deed of Absolute Sale
 (1) photocopy of the Tax Declaration
  Official Receipt of Payment of Real Property Tax and Special Education Fund Tax for the
current year

5. File documents at the Registry of Deeds for the issuance of new land title

The new owner’s duplicate copy of the TCT and CCT in your name will be released once you have
presented all of the following documents:

 (1) Original Copy and (3) photocopies of the Deed of Absolute Sale, stamped as received by
the BIR
 Seller’s Owner’s Duplicate Copy of the TCT or CCT
 (1) Original Copy of the CAR
 (1) Original Copy of the Tax Clearance
 Original Copies of Official Receipts of Payments of CGT, DST, Tax Clearance Certificate,
and Transfer Fee
 Original Copies of the Current Tax Declaration for land and improvement issued by the local
assessor’s office

6. File documents at the Municipal or Provincial Assessor’s Office for the issuance of
new Tax Declaration

For the release of the new Tax Declaration, present a photocopy of the following documents:

 Deed of Absolute Sale

 TCT OR CCT
 CAR
 Transfer Tax Receipt
 Latest Tax Receipt OR Tax Clearance

Do not forget to accomplish this last step, as this is often missed out. Remember – ownership of a Tax
Declaration should always be done after Land Title Transfer as the name on the Land Title should
coincide with the name indicated on the Tax Declaration.
 Documents Needed Upon Sale of Real Property
 Deed of absolute sale (12 copies)
- Seller Signature on all left sides of pages
- Buyer Signature on all right sides of pages
 Original Transfer Certificate of Title (2 copies) check the title numbers
 Original Tax Declaration (2 copies) check the title numbers
 Original Certificate of no improvement (2 copies) check the title numbers
 Original Tax Clearance (2 copies) check the title numbers
 Official Receipt of Real Property Tax 2019 (2 copies) check the title numbers
 Tax Identification Numbers (TIN) of the Seller and Buyer