CAPITAL GAINS TAX = 6%

ICYMI last Wednesday—I’m reposting this as a regular post.

Good news: The Department of Finance has officially withdrawn its proposal to raise Capital Gains Tax and Estate Tax to 10% from 2025 to 2030!

Quick recap:

Back in December 2024, BusinessWorld reported that the DOF had revised the Passive Income and Financial Intermediary Taxation Act (PIFITA). Two key changes proposed by DOF Secretary Ralph Recto was a temporary increase in Capital Gains and Estate Taxes to 10% for the years 2025–2030.

Now:

Four months later, Sec. Recto has written to House Ways and Means Committee Chair and Albay Rep. Jose Salceda, formally retracting that proposal.

So yes—REJOICE!

Some interesting context:

1.⁠ ⁠Ralph Recto, as a senator, was the principal author of the law that raised VAT from 10% to 12% in 2005.

2.⁠ ⁠On January 30, 2023, Rep. Salceda (same Cong. who received Sec. Recto’s Letter) filed a bill to impose a 25% tax on “non-essential goods,” including real estate priced over P100,000/sqm. That bill, however, didn’t move forward.

Given these developments—and the fact that such proposals from highly influential figures didn’t gain traction—it’s fair to assume that no major changes to real estate transaction taxes are on the horizon.