Sale of Real Property on

Installment plan
Sale of real property with
initial payment within the
year of sale does not exceed
25% of Gross Selling Price

Sale of Real Property on

Deferred Payment Basis
Sale of real property with
initial payment within the
year of sale exceed 25% of
Gross Selling Price

Initial Payment/s
Payment or payments which
the seller receives during the
calendar year when the sale
or disposition of real property
was made

Capital Gains Tax

Tax imposed on the gains presumed
to have been realized by the seller
from the sale, exchange, or other
disposition of real property,
classified as capital assets,
including pacto de retro sales, and
other forms of conditional sale

Final Withholding Tax

A system of collecting taxes
whereby the amount of income
tax withheld by the withholding
agent is constituted as a full and
final payment of the income tax
due from the tax payer on the
said income

For real property 6%

What is the tax rate of capital
gains tax?

30
Capital gains tax return should
be filed within _____ days after
each sale or disposition of real
property (cash sale) and
following the receipt of each
installment payment
(installment sale)

Certificate Authorizing
Registration (CAR)
A certification issued by the
Commissioner or his duly authorized
representative attesting that the transfer
and conveyance of land, buildings, barter
or exchange have been reported and the
taxes due inclusive of the DST, have
been fully paid

30 days ; 18 months
Exemption from CGT for sale of
principal residence should be filed
within ____ days from the date of sale
and acquisition or construction of new
principal residence shall be done
within ____ months from the date of
sale

10 years ; 100%
Exemption from CGT for sale of
principal residence can only be
availed once every ____ years.
Proceeds of the sale shall be ____%
utilized for the construction or
acquisition of a new principal
residence of seller

25 %
Late payment of CGT shall be
subjected to a ____ % surcharge

Expanded or Creditable
Withholding Tax
A system of collecting taxes
whereby the taxes withheld on
certain income payments are
intended to equal or at least
approximate the tax due of the
payee on said income

1.5 %
Expanded or Creditable
withholding tax for real property
with a selling price of P500,000.00
or less

3%
Expanded or Creditable
withholding tax for real property
with a selling price of more than
P500,000.00 but not more than
P2,000,000.00

5%
Expanded or Creditable
withholding tax for real property
with a selling price of more than
P2,000,000.00

6%
Expanded or Creditable
withholding where the
seller/transferor is not habitually
engaged in real estate business

BIR Form 1606 ; 10 days

Withholding Tax Remittance Return
or BIR Form ____ should be filed
within ____ days after the end of
each month

25%
Penalty for non-payment of
withholding tax is ____% of the
amount due

Documentary Stamp Tax

A tax on documents, instruments,
loan agreements and papers
evidencing the acceptance,
assignment, sale or transfer of an
obligation, rights, or property
incident thereto.

Documentary Stamp Tax

A tax on documents, instruments,
loan agreements and papers
evidencing the acceptance,
assignment, sale or transfer of an
obligation, rights, or property
incident thereto.