Master the Philippine tax framework for real estate transactions. Learn about Capital Gains Tax, Documentary Stamp Tax, VAT, Creditable Withholding Tax, transfer tax, and exemptions. explained in plain language with real-world scenarios.
6% CGT on the higher of selling price or zonal value. Applies to capital assets only. Includes principal residence exemption rules and 30-day filing deadline.
DST rate (P15 per P1,000), tax base (higher of selling price or zonal value), exemptions, and filing deadline. Applies to all sales of real property.
12% VAT applies when the seller is VAT-registered. CREATE Act removed the VAT exemption for residential lots; house-and-lot exemption follows the BIR threshold. How VAT differs from CGT.
CWT rates: 1.5% (P500K and below), 3% (P500K-P2M), 5% (above P2M). Applies to ordinary asset sales, not capital assets. Buyer withholds and remits.
LGU transfer tax rates (0.5-0.75%), LRA registration fee schedule by price bracket, and total closing costs for property transfers in the Philippines.
Learn about tax exemptions for real estate transactions including tax-free exchanges, principal residence exemption, socialized housing, estate settlements, and donations.