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
- 17 min
Capital Gains Tax Philippines: 6% CGT on Real Estate (2026)
6% CGT on the higher of selling price or zonal value. Applies to capital assets only. Includes principal residence exemption rules and 30-day filing deadline.
- 27 min
Documentary Stamp Tax Philippines: 1.5% DST on Real Estate
DST rate (P15 per P1,000), tax base (higher of selling price or zonal value), exemptions, and filing deadline. Applies to all sales of real property.
- 38 min
VAT on Real Estate Philippines: 12% Tax & Exemptions
12% VAT applies when the seller is VAT-registered. CREATE Act removed the VAT exemption for residential lots; house-and-lot exemption follows the BIR threshold. How VAT differs from CGT.
- 47 min
Creditable Withholding Tax (CWT) Real Estate Philippines
CWT rates: 1.5% (P500K and below), 3% (P500K-P2M), 5% (above P2M). Applies to ordinary asset sales, not capital assets. Buyer withholds and remits.
- 57 min
Transfer Tax & LRA Registration Fees Philippines (2026)
LGU transfer tax rates (0.5-0.75%), LRA registration fee schedule by price bracket, and total closing costs for property transfers in the Philippines.
- 68 min
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.