QuestionsQuestions (Republic Act No. 11164)
It is promulgated pursuant to Section 244 of the Tax Code of 1997, in relation to Sections 24(D)(1) and 27(D)(5) of the same Code, and it amends regulations on the tax treatment of the sale, transfer, or exchange of real property, including the time/venue of filing and payment for capital gains tax (capital assets) and creditable withholding tax (ordinary assets).
A final capital gains tax of 6% is imposed on the capital gains presumed to have been realized by the seller from dispositions of Philippine-located real properties classified as capital assets.
The 6% is imposed on whichever is higher between (a) the capital gains presumed realized and (b) the gross selling price or fair market value (FMV) as determined in accordance with Section 6(E) of the Tax Code.
Yes. The regulation expressly includes pacto de retro sales and other forms of conditional sales based on the gross selling price or FMV under Section 6(E) (whichever is higher).
The taxpayer may choose either: (1) normal income tax rates under Section 24(A), or (2) a final 6% capital gains tax under Section 24(D)(1).
Within thirty (30) days following each sale or disposition, filed by the seller and payment made to an Authorized Agent Bank (AAB) located within the RDO having jurisdiction over the property’s location.
The RDO having jurisdiction over the place where the property being transferred is located.
It is based on the gross selling price/total consideration or the FMV determined under Section 6(E), whichever is higher.
1.5%.
3.0%.
5.0%.
7.5%.
The regulation states the seller/transferor is Exempt from creditable withholding tax (i.e., the rate is “Exempt”).
Payment is made upon filing of the return with an AAB located within the RDO having jurisdiction over the property’s location, within ten (10) days following the end of the month when the transaction occurred.
Taxes withheld in December must be filed on or before January 25 of the following year.
It is issued by the RDO upon presentation of the validated proof of full payment of the applicable tax, to allow registration of the real property in favor of the transferee.
Presentation of the Capital Gains Tax Return or Creditable Withholding Tax Return with bank validation evidencing full payment of the capital gains tax or creditable withholding tax due on the disposition.
Fifteen (15) days after publication in any newspaper of general circulation.