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.
Final Capital Gains Tax for Onerous Transfer of Real Property Classified as Capital Assets (Taxable and Exempt)
Tax Form
Bureau of Internal Revenues (BIR Form 1706) – Final Capital Gains Tax Return (For Onerous Transfer of Real Property Classified as Capital Assets -Taxable and Exempt).
Documentary Requirements
- One original copy and one photocopy of the Notarized Deed of Sale or Exchange.
- Photocopy of the Transfer Certificate of Title, Original Certificate of Title, or Condominium Certificate of Title.
- Certified True Copy of the tax declaration on the lot and/or improvement during nearest time of sale.
- “Certificate of No Improvement” issued by the Assessor’s office where the property has no declared improvement, if applicable or Sworn Declaration/Affidavit of No Improvement by at least one (1) of the transferees.
- Copy of BIR Ruling for tax exemption confirmed by BIR, if applicable.
- Duly approved Tax Debit Memo, if applicable.
- “Sworn Declaration of Interest” as prescribed under Revenue Regulations 13-99, if the transaction is tax-exempt .
- Documents supporting the exemption.
Additional requirements may be requested for presentation during audit of the tax case depending upon existing audit procedures.
Procedure
File the Capital Gains Tax return in triplicate (two copies for the BIR and one copy for the taxpayer) with the Authorized Agent Bank (AAB) in the Revenue District where the property is located. In places where there are no AAB, the return will be filed directly with the Revenue Collection Officer or Authorized City or Municipal Treasurer.
Tax Rates
For real property - 6%.
Deadline
Within 30 days after each sale, exchange, transfer or other disposition of real property.
