Selling property below zonal value? Your VAT might be higher than you think. First, a quick reminder on when VAT even applies. Not every property sale is subject to VAT. If you're selling a personal residential property that isn't part of a business, VAT generally doesn't apply. But if you're selling a commercial property, a unit you rent out, or any real estate held for sale or lease in the ordinary course of business, VAT comes into play. That's when the next part matters.

On July 8, the BIR issued RMC No. 75-2026, answering FAQs on taxation, including several that affect RE transactions. I find this memo particularly useful because it gives practitioners a written basis for challenging interpretations that are inconsistent with official BIR policy. Here are some that caught my attention: 1. The spouse's TIN is not required. It is generally needed only if the property is conjugal property. So take note of the headings ("Sps. A and B" vs. "A mar

If you're involved in RE transactions, take note. A relatively recent change in the BIR's filing process for Capital Gains Tax (CGT) and Documentary Stamp Tax (DST) can create unexpected delays and expose taxpayers to penalties. The Old Process 1. Accomplish the CGT and DST forms using the offline eBIRForms application or by encoding the PDF forms. 2. Print the forms. 3. Pay at the bank. There was no need to wait for any electronic confirmation before payment. The New Process

Imagine selling a property and losing 25% of the gross proceeds to tax. That can happen when Philippine real property is legally owned and sold by a foreign corporation incorporated outside the Philippines that is not engaged in business here. Under Section 28(B)(1) of the Philippine Tax Code, a nonresident foreign corporation is generally subject to a 25% final income tax on gross income from Philippine sources. On the gross amount received from the sale. So if a property is

Here's one thing I learned recently about selling income-generating commercial properties. When a commercial building that has been previously leased out is sold, the transaction doesn't always end with transferring the title and tax declaration. If the previous owner was operating under a business permit, they will also need to formally close their business registration with the local government unit (LGU). Why does this matter? Because when the new owner eventually applies

Losing your property title sounds like a nightmare—but it happens more often than you think. Fires. Floods. Theft. Or simply misplaced over time. So what actually happens when your title is gone? -- First, understand this: Under the Torrens System (land registration system), every titled property has two copies: 1. The Original Certificate of Title (kept by the Registry of Deeds) 2. Owner’s Duplicate Certificate of Title (what you hold) This setup protects ownership even if o

Good news for families with unsettled estates. On Feb. 18, 2026, Senator Juan Miguel Zubiri filed Senate Bill No. 1865 seeking to extend the Estate Tax Amnesty until Dec. 31, 2028. The previous extension expired on June 14, 2025. If passed, this would reopen the window once again. But here’s the uncomfortable truth: the real bottleneck in estate settlement isn’t the tax. Two years ago, we invited Atty. Jojo Mejia to speak on Estate Settlement Taxation and Planning under TRAIN

On Feb. 15, Bilyonaryo published an article reporting that the Dasmariñas Village Association (DVA) warned of a possible up to 16x increase in real property taxes (RPT) once the proposed SMV is implemented. Highlights from the article: + DVA is CONCERNED about a staggering increase in RPT. + DVA said they were told the Makati LGU does NOT INTEND to use the SMV to sharply raise taxes. + DVA will propose revisions in assessment levels and tax rates, and a cap to limit future in

Unknown to many, there’s a non-obvious way the BIR can subject the sale to VAT and CWT to a real estate transaction. ...when the seller has more than 5 real estate transactions in one year. Why this matters Once BIR classifies someone as "habitually engaged in real estate transactions", they will no longer be taxed like a regular individual selling personal assets. Instead, they WILL be treated as someone selling in the course of trade or business — which will open the door t

What Happens If You Pay CGT + DST to the Wrong RDO? This is one of those BIR landmines that looks harmless… until it isn’t. Let’s use a real-world example: A property in Ayala Heights was sold. And not a lot of people know this, but the village actually sits under two different RDOs: + RDO 28 (Matandang Balara – Novaliches) + RDO 39 (Pansol – South QC) So before you file and pay, you’ll need to request a tax map to confirm which RDO the specific property falls under. So What