Free Legal Advice Philippines

Disclaimer: This web site is designed for general information only and does not create attorney-client relationship. Persons accessing this site are encouraged to seek independent counsel for legal advice regarding their individual legal issues.

Log in

I forgot my password




You are not connected. Please login or register

Bank Guaranty as payment

View previous topic View next topic Go down  Message [Page 1 of 1]

1 Bank Guaranty as payment on Sat Apr 22, 2017 12:27 am

macadiz


Arresto Menor
May I know if a bank's letter of guaranty as part of payment to a sale of land considered as cash payment in filling out BIR form for Capital Gains Tax Return? Also how do I word the Acknowledgement Receipt required by BIR to show proof that payment has been received (although in reality, payment comprised of 25% cash and 75% bank guaranty, proceeds of which will be released only upon delivery of the new TCT and TD)?

View user profile

2 Re: Bank Guaranty as payment on Mon Apr 24, 2017 1:06 pm

betchay001


Reclusion Perpetua
No, a letter of guarantee is not proof of payment.

Taxes need to be paid anyways when the payment has reached 25% of the total contract price (it is treated as a cash sale). So you do not need to have an Acknowledgment receipt for something you have not received yet.

View user profile

View previous topic View next topic Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum