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Real Estate Taxation Essentials

Master the Philippine tax framework for real estate transactions. Learn about Capital Gains Tax, Documentary Stamp Tax, VAT, Creditable Withholding Tax, transfer tax, and exemptions. explained in plain language with real-world scenarios.

6 lessons·44 min total reading·Free

What You'll Learn

  • Compute the 6% capital gains tax and determine the correct tax base
  • Calculate documentary stamp tax on deeds of sale, mortgages, and leases
  • Determine when 12% VAT applies vs. when transactions are VAT-exempt
  • Apply the correct creditable withholding tax rate for ordinary asset sales
  • Understand local transfer tax rates and registration fee requirements
  • Identify available tax exemptions including tax-free exchanges and principal residence rules

Lessons

1

Capital Gains Tax: The 6% Final Tax on Real Property

Understand the 6% capital gains tax on sale of real property classified as capital asset. Learn how to determine the tax base, when it applies, and who is liable.

7 min
2

Documentary Stamp Tax: The 1.5% Transfer Tax

Learn about the documentary stamp tax on conveyance of real property. Understand the DST rate, computation, exemptions, and filing requirements under the NIRC.

7 min
3

VAT on Real Estate: When the 12% Tax Applies

Learn when the 12% value-added tax applies to real estate transactions. Understand the VAT-exempt thresholds, who is liable, and how it interacts with other taxes.

8 min
4

Creditable Withholding Tax on Real Estate Sales

Learn about the creditable withholding tax (CWT) on sales of real property classified as ordinary assets. Understand the rates, who withholds, and filing requirements.

7 min
5

Transfer Tax and Registration Fees

Understand the local transfer tax under the Local Government Code, Registry of Deeds registration fees, and other costs required to complete property title transfer.

7 min
6

Tax Exemptions and Special Rules

Learn about tax exemptions for real estate transactions including tax-free exchanges, principal residence exemption, socialized housing, estate settlements, and donations.

8 min