Real Estate Seminar and Review

Here is a quick summary of due dates for the payment of taxes related to real estate in the Philippines. This makes for a handy review for those who want to pass the Real Estate Brokers’ Exam conducted by the DTI.

DST – on or before the 5th day of the following month (based on notarization date).

CWT – on or before the 10th day of the following month (based on the proof of receipt).

VAT – due on the 20th day of the following month.

CGT – within 30 days from date of receipt.

Donor’s Tax – within 30 days from notarization date.

Estate Tax – within 6 months (180 days) from demise.

Additional Tip: Write the above data on a sheet of paper. The act of writing helps you remember. Please take note of the sequence: DST, CWT, VAT, CGT (5th, 10th, 20th, 30d). If you say it out loud, you’ll have an easier time remembering.

The act of reading (visual), writing (kinesthetic), and chanting/lecturing/rapping/singing (auditory) helps you learn things faster because you involve many types of intelligence.

BIR References

Please check the 2008 Regulations, particularly Section 4 of Revenue Regulations No. 4-2008 (PDF) [AMENDING THE VENUE FOR THE PAYMENT OF CAPITAL GAINS TAX, CREDITABLE WITHHOLDING TAX AND DOCUMENTARY STAMP TAXES DUE ON ONEROUS TRANSFERS OF REAL PROPERTIES OWNED BY TAXPAYERS CLASSIFIED AS LARGE TAXPAYERS PURSUANT TO REVENUE REGULATIONS NO. 1-98, AS AMENDED, THEREBY AMENDING FOR THIS PURPOSE PERTINENT PROVISIONS OF REVENUE REGULATIONS NO. 8-98.]

SEC. 4. TIME AND PLACE OF PAYMENT OF CREDITABLE WITHHOLDING TAX AND DST ON THE SALE, EXCHANGE OR OTHER MODE OF ONEROUS DISPOSITION OF REAL PROPERTIES CLASSIFIED AS ORDINARY ASSETS. —

Creditable withholding taxes deducted and withheld by the withholding agent/buyer on the sale, transfer or exchange of real property classified as ordinary asset, shall be paid by the withholding agent/buyer upon filing of the return with the Authorized Agent Bank (AAB) located within the Revenue District Office (RDO) having jurisdiction over the place where the property being transferred is located within ten (10) days following the end of the month in which the transaction occurred subject, however, to the rules prescribed by Electronic Filing and Payment System(EFPS) regulations in case the taxpayer is an EFPS taxpayer.

The corresponding documentary stamp tax return shall be filed within five (5) days after the close of the month when the taxable document was made, signed, accepted or transferred, and the tax thereon shall be paid at the same time the aforesaid return is filed with the Authorized Agent Bank (AAB) of the RDO having jurisdiction over the place where the property being transferred is located.

Provided, however, that in cases where the seller thereof is a large taxpayer, the venue for the filing of the creditable withholding tax return (BIR Form 1606) and payment of taxes due thereon as well as the DST Return (Form No. 2000-OT) and DST due thereon shall be with the AAB of the concerned LTS Office where said large taxpayer-seller is registered.

In the case of real estate development projects under a joint venture agreement where one of the co-venturers is a large taxpayer and the other is a nonlarge taxpayer, the venue for the payment of taxes accruing to the sale or onerous disposition to third parties of their owned respective portion of the real estate shall be in accordance with the provisions herein prescribed. Thus, the taxes due on the sale or disposition of the shares/units allocated to the co-venturer which is a large taxpayer, shall be paid and the corresponding returns thereof shall be filed with the AAB of the concerned LTS Office where said large taxpayer is registered. On the other hand, the returns required and the taxes accruing on the sale or disposition of the units allocated to the other co-venturer that is a non- large taxpayer shall be filed and paid with the AAB of the RDO having jurisdiction over the place where the property being transferred is located.

This above rule on the venue in the filing of the returns and payment of taxes on onerous transfers of real estate shall likewise apply to taxable foreclosure sales.

Tags: CGT, CWT, DST, due dates

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