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Bank Guaranty as payment

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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)?

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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.

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