In
the past few years, a lot of previous and potential clients would ask
about the expenses on the sale of a property like taxes paid when
undergoing real estate transactions from acquisition to transfer of
real properties and we have included them in this article for
everyone's information in doing transactions for real estate properties.
Capital Gains Tax or Creditable Withholding Tax for corporations - Capital
Gains Tax is a tax imposed on the gains presumed to have been realized
by the seller from the sale, exchange, or other disposition of capital
assets located in the Philippines, including pacto de retro sales and
other forms of conditional sale. Capital Gains Tax is six percent (6%).
For corporations, it is called creditable withholding tax and is similar
to capital gains tax. Payment of capital gains tax is one-time only
with BIR and is usually shouldered by owner / seller;
Documentary Stamp Tax - is a tax on documents, instruments, loan
agreements and papers evidencing the acceptance, assignment, sale or
transfer of an obligation, right or property incident thereto. Documentary Stamp Tax is 1.5% of the selling price of the property;
Transfer Tax - This
is paid to the local treasury of the municipality or city where the
property is located. Computation of transfer tax may vary from different
factors like size of property, assessment value and the city, municipality or province where it is located;
Registration Fee - The
fee may vary on the computation parameters established by Register of
Deeds. They may have an actual matrix available there but they will
make adjustments in the computation of the actual property for
registration purposes into one's name. It is better to have it computed after paying to BIR and the city / municipal and provincial government where the transfer tax was paid;
Other Miscellaneous Fees
- This could be the broker's professional fee if you have hired the
services of a licensed real estate broker to represent you on your
behalf in marketing or selling the property, notarial fee from lawyer's
legal services in signing and notarizing documents for court, for BIR
use or others uses. A broker's fee may vary from the size and amount of the property sold. There is an established industry figures but it is debatable as of this time.
With
the ongoing pandemic, need help in this tedious documentation process
of transferring of ownership one's real estate properties? One can avail
of our services by getting in touch with us at our website's contact page.
C. F. Baluyut Realty provides best real estate properties in Pampanga
and other parts of Central Luzon. Covers wide ranges of properties from
residential, commercial, industrial and agricultural properties for
sale.
Sources:
Photo Credits: rawpixel.com from Pexels
Comprehensive Real Estate Review and Seminar Handbook (2015) - REBAP
About the Writer
CRB Benedict Baluyut is
a professional real estate broker, real estate appraiser and associate
of C. F. Baluyut Realty. He is currently the Vice President for External
Affairs, Real Estate Brokers Association of the Philippines, Inc.
(REBAP) - Pampanga Chapter. You can get in touch with him at https://www.cfbaluyutrealty.com.
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