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Tanong lang po regarding Deed of Sale

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1 Tanong lang po regarding Deed of Sale on Wed Jun 01, 2016 6:57 am

Alona24


Arresto Menor
Magkano po ang dapat bayaran pagdating po sa Deed of Sale kung nabili mo ang lupa ng P1.6 M.. Maraming salamat po

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2 Re: Tanong lang po regarding Deed of Sale on Wed Jun 01, 2016 11:49 am

betchay001


Prision Mayor
Zonal Value or Selling Price, whichever is higher.

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3 Re: Tanong lang po regarding Deed of Sale on Wed Jun 01, 2016 11:51 am

betchay001


Prision Mayor
Kindly check with BIR, bring all docs. It could be 5% or 6% if non-habitual seller.

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4 Re: Tanong lang po regarding Deed of Sale on Wed Jun 01, 2016 4:44 pm

abbyatty16


Arresto Menor
Ordinarily, it's 6
% capital gains tax plus 1.5% documentary stamp tax bas[justify]ed on the selling price, zonal value or assessed value, whichever is highest. The amount shall be paid to the BIR and usually shouldered by the seller unless there is an agreement to the contrary. Next, is transfer tax collected by the City Hall Treasurer's Office which could go from .05% to .75% (depending on the city having jurisdiction over the property). On top of these charges, there are some other expenses for the notarization of the document and .25% registration fee, among other things.

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5 Re: Tanong lang po regarding Deed of Sale on Wed Jun 01, 2016 4:56 pm

abbyatty16


Arresto Menor
However, if the seller is proven to be habitually engaged in the real estate business and the property is an ordinary asset, seller is not required to pay capital gains tax (CGT) but the creditable withholding tax (CWT) of 3% since, according to you, 1.6m ang selling price. (which falls under the less than 2 million pesos but more than seven hundred fifty thousand pesos threshold).

If, on the other hand, the seller/transferor is not habitually engaged in the real estate business but the real estate sold is an ordinary asset, it should be 6% CWT.


Please note that my answers should only be a guide and that as advised above, please still check with the BIR, as well as the City Hall Treasurer's Office where the property is located.

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