Tuesday, August 11th, 2009 at
11:21 pm
A transfer tax is imposed on tax on the sale, donation, barter, or any other mode of transferring ownership or title of real property at the maximum rate of 50% of 1% (75% of 1% in the case of cities and municipalities within Metro Manila) of the total consideration involved in the acquisition of the property or of the fair market value in case the monetary consideration involved in the transfer is not substantial, whichever is higher. This is pursuant to Section 135 of the Local Government Code of 1991 (LGC).
Read the rest of this entry
Monday, June 1st, 2009 at
11:00 pm
Assuming that you already have a property which you intend to sell or lease out, it is important to know whether or not VAT applies to your real estate transactions, and how you can avoid the imposition of VAT. Same goes if you intend to buy a foreclosed property.
Read the rest of this entry
Friday, May 29th, 2009 at
11:00 pm
There are different DST rates on different types of transactions. In my previous post on
How to Easily Compute DST, I was referring to DST on the sale of real property. Please note that there is DST too on loan agreements, lease agreements, and mortgages, and there are also exemptions from DST. For this post, aside from discussing these, I will also discuss the deadline date and venue for filing the DST return. I will provide you as well with a blank DST form for your use and reference. Take note that most of this post was actually written by my wife.
Read the rest of this entry
Tuesday, April 21st, 2009 at
10:46 pm
When buying a foreclosed property, the buyer often shoulders the Documentary Stamp Tax (DST). In the Buena Mano Green Tag Foreclosed Property listings for example, it is explicitly stated that DST is for the account of the buyer and DST is 1.5% of the Selling Price (SP) or Zonal Value (ZV), whichever is higher. To illustrate, I’ll reuse the example I used in my post about CGT.
Read the rest of this entry
Sunday, February 1st, 2009 at
8:06 am
“In this world nothing is certain but death and taxes.”
– Benjamin Franklin
Taxes are indeed inescapable and the real estate industry is no exception. I am sure a lot of real estate investors are very much interested to know the taxes involved in investing as they significantly impact the total cost of acquiring a property. What may seem like a good deal may turn out to be a bad one, if all the taxes are factored in. So before you go ahead and plunge into the world of real estate investing, I suggest you take the time to study taxes. For this post, I will be discussing capital gains tax (CGT). Read the rest of this entry
But it’s still like the “engage a lot...