STEP 1 SUBMIT:
Submit the following documents at the Bureau of Internal Revenue Regional District Office (BIR RDO) that handles the property’s location:
1) DEED OF ABSOLUTE SALE (DOAS)
-Notarized Original copy and two Photocopies.
2) TRANSFER CERTIFICATE OF TITLE (TCT)
-Owner's duplicate copy and two photocopies (or CONDOMINIUM CERTIFICATE OF TITLE (CCT) in case of sale of condominium units).
3) TAX DECLARATION (LATEST)
- HOUSE AND LOT: Latest Tax Declaration for land and improvement of the real property.
- LOT ONLY: Sworn Declaration of No Improvement by at least one of the transferees or Certificate of No Improvement issued by the city or municipal assessor.
- Certified True Copies and two photocopies.
4) TAX IDENTIFICATION NUMBER (TIN) both of the Seller and the Buyer.
5) SPECIAL POWER OF ATTORNEY (SPA)
- If the person who will process the transfer of the land title is not the owner as it appears on the TCT or CCT.
6) CERTIFICATION OF THE PHILIPPINE CONSULATE
-If the document was executed abroad, a Certificate of Authentication by the nearest Philippine Consulate is required.
7) VALID ID
-Two photocopies of valid IDs of both the seller and the buyer.
NOTE: BIR representative may ask additional requirements for certain cases.
-------------------------------------------------------------------------------------
STEP 2 CALCULATE:
After submitting the required documents on Step 1, a BIR representative will calculate your CAPITAL GAINS TAX (CGT) and DOCUMENTARY STAMP TAX (DST).
CAPITAL GAINS TAX (CGT): 6% of the selling price (SP) or the zonal value or the Fair Market Value of the property, whichever is higher.
DOCUMENTARY STAMP TAX (DST): 1.5% of the selling price (SP) or the zonal value or the Fair Market Value of the property, whichever is higher.
As an internal agreement, the buyer usually pays for DOCUMENTARY STAMP TAX (DST) and all other transfer costs while the seller pays for the CAPITAL GAINS TAX or (CGT) or they can create a different agreement as to who pays the taxes.
-------------------------------------------------------------------------------------
STEP 3 FILL OUT:
After the calculation, the BIR representative will ask you to sign three copies each of the following:
BIR Form 1706 (CGT)
BIR Form 2000 (DST)
These will then be filed at the AAB. For areas where there are no AABs, they will be filed with the Authorized City or Municipal Treasurer.
-------------------------------------------------------------------------------------
STEP 4 PAYMENT:
You need to make the payment at any of the accredited banks. Each BIR RDO has its own corresponding accredited banks. You may ask any BIR personnel for the list of these accredited banks.
*DEADLINE OF PAYMENT:
CGT: 30th day after the execution of the DOAS.
DST: 5th day of the month after the execution of the DOAS.
Transfer Tax is due 60 days after the execution of the DOAS.
*PENALTIES FOR LATE PAYMENT:
25% of the tax due
20% interest per year on any unpaid taxes
plus compromise penalty (if any, this depends on the BIR officer).
After making the payment at any of the accredited bank, go back to BIR to submit all the requirements on STEP 1 but this time, you also need to submit the receipt from the payment you made at the accredited bank.
-------------------------------------------------------------------------------------
STEP 5 CLAIM:
File documents at the BIR for the issuance of CERTIFICATE AUTHORIZING REGISTRATION (CAR).
You will receive a claim slip with the claim date of the CAR. On your claiming date, BIR will give you the following documents:
-CERTIFICATE AUTHORIZING REGISTRATION (CAR)
-DEED OF ABSOLUTE SALE (DOAS) Original copy and stamped as received by the BIR.
-TRANSFER CERTIFICATE OF TITLE (TCT) or CONDOMINIUM CERTIFICATE OF TITLE (CCT)
-BIR Form 1706 (CGT) and Form 2000 (DST) Original copies and stamped as received by the BIR
-TAX DECLARATION for land and improvement or land and NO IMPROVEMENT whichever applies.
A PIECE OF ADVICE:
Take note that there are additional requirements for certain cases and depending on which municipality you are requesting. It’s best to double check to minimize numerous back and fourths. Also, for BIR and REGISTRY OF DEEDS, on the day you submit all your requirements, the receiver will just check it quickly then he/she will give you a claiming stub. Then it will be forwarded to another department or officer who will do a second look to check all your requirements further. It would be better if you make a follow up even before the date indicated on your claiming stub so that just in case there are some requirements missing, you will be able to provide it right away.
Government Offices do not call customers if there are missing requirements. After weeks of waiting, you will find out later on the claiming date that it is not ready yet to be released because there are missing requirements. So it is better if you initiate to contact them at least a week or two before the claiming date.
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
For more tips and other informative articles, you may go to our websites' homepage by clicking here: RAPID COMET WEBSITE or you may visit our Facebook Page for more updates by clicking here: RAPID COMET FACEBOOK PAGE.
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
