Foreign Ownership of Land in the Philippines

Real Estate Ownership in the Philippines

General Rule:
- Philippine real estate law prohibits the foreign ownership of land.
(This prohibition is found in the Philippines Constitution.)
- former ilipinos and Corporations of Philippine nationalit! ma!
own land" buildings" #ondominiums and townhouses
$$$(% #orporation is #onsidered to be of Philippine nationalit!
if at least &'( of the #orporation is owned b! ilipino
#iti)ens.)
- foreign nationals ma! bu! #ondominiums units in Philippine
#ondos (shares in #ondominium #orporations) as long as not
more than *'( of the units in a pro+e#t are a#,uired b!
foreigners (Republi# %#t -o. *./& - Condominium %#t)
E0#eptions 1 *'( oreign Ownership of Phil. Real Propert!
2 3and a#,uired before the 4567 #onstitution
2 %#,uisition through hereditar! su##ession if the foreigner is a legal or
natural heir
2 oreigners who a#,uired Philippine propert! when the! used to be
ilipino #iti)ens" will maintain ownership of those properties e8en after
their #hange of #iti)enship.
2 ormer natural-born ilipino #iti)en sub+e#t to the limitations
pres#ribed b! 3aw (9P 4:7 and R.%. :4.5)
1 or residential purpose 1
4"''' s,uare meters of urban land or
4 he#tare of rural land (9P 4:7)
a 1 Cannot own both urban and rural land. Choose one t!pe
onl!.
b 1 Pre8ious ownership (when still a ilipino #iti)en) of
residential urban or rural land will lower the 4"''' s, meter and
4 he#tare limits abo8e.
c 1 Can own a ma0imum of two (/) lots onl!.
d 1 Those lots must be in different #ities or muni#ipalities in the
Philippines.
e 1 % transferee of residential land a#,uired under 9P 4:7 ma!
still a8ail of the pri8ileges granted under R.%. .'*/ as amended
b! R.%. :4.5.
1 or business or other #ommer#ial purpose 1
7"''' s, ms of urban land or
6 has of rural land.
$$$ (;e#tion 7 of Rule <== states: >the land should be primaril!"
dire#tl! and a#tuall! used in the performan#e or #ondu#t of the
owner?s business or #ommer#ial a#ti8ities in the broad areas of
agri#ulture" industr! and ser8i#es in#luding the lease of land
but e0#luding the bu!ing or selling thereof.@)
a- Ownership (when still a ilipino #iti)en) of urban or rural land
used for business purposes will lower the 7"''' s,uare meter
and 6 he#tare limits.
b- Ownership of onl! one t!pe of land is allowed either urban or
rural not both.
c- Ownership is restri#ted to / lots. Ea#h lot must be in a
different muni#ipalit!.
Ownership of Aouses or 9uildings b! oreigners in the Phil.
- oreigners m! own buildings or houses in the Philippines legall!B
as long as the! do not own the land on whi#h it is built.
- oreign indi8iduals" #orporations or asso#iations ma! lease land
for a period of /7 !ears renewable for another /7 !ears. (P. C. -o
*.4" i0ing a Da0imum Period for the Curation of 3eases or
Pri8ate 3ands to %liens)
- Companies or indi8iduals in8esting in the Philippines ma! re#ei8e
go8ernment permission to lease land for up to 7' !ears
renewable for another /7 !ears. (Republi# %#t -o. .&7/"
otherwise Enow as the =n8estors? 3ease %#t)
Value Added Tax (VAT)
Why should we learn about taxes?
Why is it important to know whether the sale of a
certain property is subject to VAT and Creditable
Withholding Tax (CWT! or Capital "ains Tax (C"T? To
put it simply! if you pay the wrong tax! for example!
C"T instead of VAT and CWT! you may be liable for
de#ciency VAT and CWT plus penalties! and you would
ha$e to undergo a long and di%cult process to get a
refund
Aside from the $ery painful payment of a lot of taxes!
there may be a delay in the release of the Certi#cate
Authori&ing 'egistration (CA' which you need in order
for the title to the property to be transferred to the
name of the buyer(
)n addition to the abo$e! VAT should be considered in
the pricing of real estate sold( *ote that compared to a
capital asset subject to +, C"T! an ordinary asset will
be subject to CWT of as high as +, plus -., VAT( Thus!
VAT may make or break a transaction! or lower the
pro#t of the seller(
When is a sale of real property subject to VAT?
/ )f the seller/taxpayer is a VAT/registered person! the
sale of his ordinary asset shall be subject to VAT(
/ A person should register as a VAT entity if his gross
annual sales and0or receipts exceed 1-!2-2!344(44 in a
year( )f he is not originally registered as a VAT entity
but he exceeded the threshold! he should submit 5)'
6orm *o( -243 (Taxpayer 'egistration 7pdate to
change to VAT(
When is an asset considered as ordinary?
8rdinary assets are those which are9
/ :tock in trade of a taxpayer or other real property of a
kind which would properly be included in the in$entory
of the taxpayer if on hand at the close of the taxable
year; or
/ 'eal property held by the taxpayer primarily for sale
to customers in the ordinary course of his trade or
business; or
/ 'eal property used in trade or business (i(e(! buildings
and0or impro$ements of a character which is subject
to the allowance for depreciation pro$ided for under
:ec( <=(6 of the Code; or
/ 'eal property used in trade or business of the
taxpayer(
)n simple terms! real property considered as ordinary
assets are those which are used in the trade or
business of the taxpayer(
VAT Taxpayer
- The VAT taxpayer in this case is a person who is
engaged in the real estate business and is the
seller of a real property classi#ed as an ordinary
asset(
- Taxpayers engaged in the real estate business
shall refer collecti$ely to real estate dealers! real
estate de$elopers! and0or real estate lessors(
- A taxpayer whose primary purpose of engaging in
business! or whose Articles of )ncorporation states
that its primary purpose is to engage in the real
estate business shall also be deemed to be
engaged in the real estate business(
>ow about those not in the abo$e list?
- 'egistration with the >?7'5 or >7@CC as a real
estate dealer or de$eloper shall be su%cient for a
taxpayer to be considered as habitually engaged
in the sale of real estate(
- )f the taxpayer is not registered with the >?7'5 or
>7@CC as a real estate dealer or de$eloper! he0it
may ne$ertheless be deemed to be engaged in the
real estate business through the establishment of
substantial rele$ant e$idence (such as
consummation during the preceding year of at
least six (+ taxable real estate sale transactions!
regardless of amount; registration as habitually
engaged in real estate business with the ?ocal
"o$ernment 7nit or the 5ureau of )nternal
'e$enue (5)'! etc((
A person who is not engaged in the real estate
business but who is selling real property which is
classi#ed as its ordinary asset is also subject to VAT(
- This is pursuant to '' *o( =/4A which pro$ides9
B>owe$er! e$en if the real property is not primarily
held for :ale to customers or held for lease in the
ordinary course of trade or business but the same
is used in the trade or business of the seller! the
sale thereof shall be subject to VAT being a
transaction incidental to the taxpayerCs main
business(D
Thus! if a taxpayer is engaged in the restaurant
business and sells his restaurant building which he
used in his restaurant business! the said sale shall be
subject to VAT! notwithstanding that the taxpayer is not
engaged in the real estate business(
5anks are not considered as VAT taxpayers( Thus! their
sale of foreclosed properties are not subject to VAT(
They are subject instead to Creditable Withholding tax
(CWT( Their foreclosed assets! when sold! are
considered as ordinary assets but banks are not
considered as engaged in the real estate business(
VAT rate
The sale of properties which may be considered as
ordinary assets would be subject to the -.,E VAT
eFecti$e 6ebruary -! .44+(
Tax base of output VAT
The tax base of the -., output VAT is the selling price
(:1 or the fair market $alue (6GV of the property
whiche$er is higher(
)f VAT is not billed separately in the document of sale!
the selling price stated in the deed is deemed inclusi$e
of VAT( Thus! to get the selling price without VAT! di$ide
the selling price in the deed by -(-.( To get the VAT!
multiply the selling price without VAT by (-.(
What if the gross selling price in the document of sale
is eHual to the &onal $alue or market $alue of the
property? Will the selling price without VAT be
eFecti$ely lower than the &onal or market $alue of the
property?
*o! the &onal0market $alue shall be considered as net
of the output VAT(
IIIthe VAT should be separately indicated in
the document of sale and o%cial receipt as
there are penalties for non/compliance(
VAT payable
The amount of VAT payable is the diFerence between
the output VAT and input VAT( Jeep the VAT/registered
o%cial receipts (for ser$ices purchased and in$oices
(for goods purchased supporting your business
expenses so you can claim input VAT which can reduce
your output VAT payable(
Time of payment of VAT
The time of payment will depend on whether a sale is
an )nstallment :ale or a @eferred 1ayment :ale( A sale
is on installment if the initial payments in the year of
sale do not exceed.3, of the gross selling price( A sale
is considered as cash or deferred payment if the initial
payments in the year of sale exceed .3, of the gross
selling price(
)nitial payments means payment or payments which
the seller recei$es before or upon execution of the
instrument of sale and payments which he expects or
is scheduled to recei$e in cash or property (other than
e$idence of indebtedness of the purchaser during the
taxable year when the sale or disposition of the real
property was made( )t co$ers any downpayment made
and includes all payments actually or constructi$ely
recei$ed during the calendar year of sale! the
aggregate of which determines the limit set by the law(
)n other words! add the downpayment plus all
amorti&ation payments (principal portion only during
the year and compute if the total exceeds .3, of the
gross selling price(
A( @eferred payment0Cash basis
The transaction shall be treated as a cash sale which
makes the entire selling price subject to VAT in the
month of sale(
5( )nstallment basis
Kach installment payment actually and0or
constructi$ely recei$ed by the seller is subject to VAT(
The monthly VAT return should be #led on or before the
.4th day of the month following the close of the -st
two months of the Huarter (6ebruary .4! Garch .4! Gay
.4! Lune .4! August .4! :eptember .4! *o$ember .4!
@ecember .4 while the Huarterly VAT return should be
#led on or before the .3th day of the month following
the last month of the Huarter (April .3! Luly .3! 8ctober
.3! Lanuary .3(
1lace of payment
The VAT should be paid at the Authori&ed Agent 5ank
(AA5 of the 'e$enue @istrict 8%ce ('@8 where the
real property is located( )n places where there are no
AA5! the return shall be #led directly with the 'e$enue
Collection 8%cer or Authori&ed City or Gunicipal
Treasurer(
Kxemptions from VAT
The following are exempt from VAT9
:ale of residential lot not exceeding 1-!2-2!344(44
(eFecti$e Lanuary -! .4-.! as per '' *o( -+/.4--( )f
two or more adjacent lots are sold or disposed in fa$or
of one buyer! for the purpose of utili&ing the lots as one
residential lot! the sale shall be exempt from VAT only if
the aggregate $alue of the lots does not exceed
1-!2-2!344(44 (eFecti$e Lanuary -! .4-.! as per '' *o(
-+/.4--(
)n practice! ) ha$e heard of cases where adjacent
condominium units are bought but the selling prices
are not aggregated for purposes of computing whether
the sale exceeds the threshold( ) belie$e that the
reasoning made is that adjacent condominium units
are not the same as adjacent residential lots and thus!
the rule on adjacent residential lots does not apply(
This is the aggressi$e position(
:ale of real properties not primarily held for sale to
customers or held for lease in the ordinary course of
trade or business (in other words! a capital asset;
:ale of real property utili&ed for low/cost ( i(e(
1A34!444(44 and sociali&ed housing ( i(e( 1=44!444 as
de#ned by 'epublic Act *o( A.A2 or the 7rban
@e$elopment and >ousing Act of -22.;
:ale of residential house and lot not exceeding
1<!-22!.44(44 (eFecti$e Lanuary -! .4-.! as per '' *o(
-+/.4--( )n practice! condominiums use this amount
as the VAT threshold(
Capital Gains Tax
Capital Gains Ta0 8s. =n#ome Ta0
- Fhen there is a sale of real estate" automati#all! people thinE
that the! ha8e to pa! Capital Gains Ta0 (CGT). This is not
ne#essaril! the #ase.
- CGT is a ta0 on the gain from the sale of capital assets.
o Regular Corporate =n#ome Ta0 (RC=T) Gfor
#orporationsH and
o Regular =n#ome Ta0 Gfor indi8idualsH appl! to the sale of
ordinar! assets
o while CGT applies to the sale of #apital assets
- we first ha8e to determine whether the asset being sold is a
#apital or an ordinar! asset so as to Enow the proper ta0 rate to
be used and the 9=R form to be used" among other
Capital assets 8s. Ordinar! assets
>#apital assets@ is defined negati8el! in ;e#tion 65(%)(4) of the Ta0
Code as follows:
>Capital %ssets. 1 the term I#apital assets? means propert! held
b! the ta0pa!er (whether or not #onne#ted with his trade or
business)" but does not in#lude
2 sto#E in trade of the ta0pa!er or other propert! of a Eind whi#h
would properl! be in#luded in the in8entor! of the ta0pa!er if on
hand at the #lose of the ta0able !ear" or
2 propert! held b! the ta0pa!er primaril! for sale to #ustomers
in the ordinar! #ourse of his trade or business" or
2 propert! used in the trade or business" of a #hara#ter whi#h is
sub+e#t to the allowan#e for depre#iation pro8ided in
;ubse#tion () of ;e#tion 6*B
2 or real propert! used in trade or business of the ta0pa!er.@
>#apital assets@ and >ordinar! assets@ as applied to the real estate
industr! - ;e#tion /(#) of Re8enue Regulations (RR) -o. .-/''6 dated
Ce#ember /." /''/.
- =t?s essentiall! the same as the abo8e definition.
- =t has an additional pro8ision on real properties a#,uired b! banEs
through fore#losure sales
1 the same are #onsidered as their ordinar! assets but
banEs shall not be #onsidered as habituall! engaged in the
real estate business for purposes of determining the
appli#able rate of e0panded withholding ta0.
;in#e we are talEing about the sale of real propert! here" we need to
Enow the definition of >real propert!@.
- ;e#tion /(#) of RR -o. .-/''6
o >Real propert! shall ha8e the same meaning attributed
to that term under %rti#le *47 of Republi# %#t -o. 6:&"
otherwise Enown as the >Ci8il Code of the Philippines.@
- %rti#le *47 of the Ci8il Code pro8ides:
o >%rt. *47. The following are immo8able propert!:
(4) 3and" buildings" roads and #onstru#tions of all Einds
adhered to the soilB
(/) Trees" plants" and growing fruits" while the! are atta#hed
to the land or form an integral part of an immo8ableB
(6) E8er!thing atta#hed to an immo8able in a fi0ed manner"
in su#h a wa! that it #annot be separated therefrom without
breaEing the material or deterioration of the ob+e#tB
(*) ;tatues" reliefs" paintings or other ob+e#ts for use or
ornamentation" pla#ed in buildings or on lands b! the owner
of the immo8able in su#h a manner that it re8eals the
intention to atta#h them permanentl! to the tenementsB
(7) Da#hiner!" re#epta#les" instruments or implements
intended b! the owner of the tenement for an industr! or
worEs whi#h ma! be #arried on in a building or on a pie#e of
land" and whi#h tend dire#tl! to meet the needs of the said
industr! or worEsB
(&) %nimal houses" pigeon-houses" beehi8es" fish ponds or
breeding pla#es of similar nature" in #ase their owner has
pla#ed them or preser8es them with the intention to ha8e
them permanentl! atta#hed to the land" and forming a
permanent part of itB the animals in these pla#es are
in#ludedB
(.) ertili)er a#tuall! used on a pie#e of landB
(:) Dines" ,uarries" and slag dumps" while the matter
thereof forms part of the bed" and waters either running or
stagnantB
(5) Co#Es and stru#tures whi#h" though floating" are
intended b! their nature and ob+e#t to remain at a fi0ed
pla#e on a ri8er" laEe" or #oastB
(4') Contra#ts for publi# worEs" and ser8itudes and other
real rights o8er immo8able propert!.@
$$$Thus" it appears that it is not onl! the sale of land and buildings or
houses whi#h we should be fo#using on" but also the sale of the abo8e.
$$$RR -o. .-/''6
- ;e#tion 6 of RR -o. .-/''6 pro8ides the Guidelines in Cetermining
Fhether a Parti#ular Real Propert! is a Capital %sset or Ordinar! %sset
- if the propert! is not ordinaril! held for sale (as in8entor!) or used in
business and sub+e#t to depre#iation" then the propert! is a #apital
asset.
- if a seller is engaged in the real estate business" and the propert! is
one he holds out for sale to the publi#" then the propert! ma! be
#onsidered as an ordinar! asset
G-ote that there ma! be instan#es when a seller is engaged
in the real estate business but the propert! is not held for
sale or used in business or was idle for a long time 1 this is
one of the instan#es when the propert! ma! be #onsidered a
#apital asset.H
- if a seller is not engaged in the real estate business" and the propert!
is not used in business and sub+e#t to depre#iation" the propert! ma!
be #onsidered as a #apital asset" the sale of whi#h is sub+e#t to CGT
Ta0 Rate to be Jsed
- Fhen the real propert! whi#h is a #apital asset to the seller is
sold" the gross selling pri#e or fair marEet 8alue (DK) G)onal
8alueH" whi#he8er is higher" will be sub+e#t to ! CGT
- Te#hni#all!" it?s not reall! onl! the gain (selling pri#e less #ost)
whi#h is ta0ed" be#ause e8en if the seller suffered a loss (that is"
the selling pri#e is lower than the original a#,uisition #ost of the
propert!)" there will still be CGT" be#ause a gain is alwa!s
presumed
- On the other hand" if the seller is engaged in the real estate
business" and the real propert! sold is an ordinar! asset" the sale
will be sub+e#t to RC=T Gor minimum #orporate in#ome ta0 (DC=T)"
when appli#ableH if the ta0pa!er is a #orporation and in#ome ta0 if
the seller is an indi8idual.
- The pro#eeds from the sale of the real propert! will be in#luded in
the seller?s global in#ome (meaning in#ome from all sour#es 1
note that domesti# #orporations and resident #iti)ens are ta0ed
on all sour#es of in#ome" whether from within or outside the
#ountr!) and onl! the net in#ome" after allowable dedu#tions
su#h as depre#iation" losses" et#. will be sub+e#ted to RC=T"
DC=T" or regular in#ome ta0" whi#he8er is appli#able.
7nder 'epublic Act *o( 2<<A
- the 'C)T is now <4, on net taxable income
(beginning on Lanuary -! .442! down from <3,(
- The regular income tax for indi$iduals remains at
<.,(
III there is an exception to the application of the C"T!
and that is the sale of a principal residence (your own
home
5)' procedure
/ Assuming that you are interested in buying a property
from a seller who is an indi$idual and who is not
engaged in the real estate business! the seller needs to
pay C"T on the sale of his real property! unless you
ha$e made an agreement that you as the buyer will
shoulder this(
/ The seller needs to #le 5)' 6orm *o( -A4+ within
thirty (<4 days after each sale! exchange! transfer or
other disposition of real property
@ocumentary 'eHuirements
- 8ne original copy and one photocopy of the *otari&ed
@eed of :ale or Kxchange
. 1hotocopy of the Transfer Certi#cate of Title; 8riginal
Certi#cate of Title; or Condominium Certi#cate of Title
< Certi#ed True Copy of the tax declaration on the lot and0or
impro$ement during nearest time of sale
= BCerti#cate of *o )mpro$ementD issued by the AssessorCs
o%ce where the property has no declared impro$ement! if
applicable or :worn @eclaration0A%da$it of *o )mpro$ement
by at least one (- of the transferees
3 Copy of 5)' 'uling for tax exemption con#rmed by 5)'! if
applicable
+ @uly appro$ed Tax @ebit Gemo! if applicable
A B:worn @eclaration of )nterestD as prescribed under
'e$enue 'egulations -</22! if the transaction is tax/exempt
M @ocuments supporting the exemption
I Additional reHuirements may be reHuested for
presentation during audit of the tax case
depending upon existing audit procedures
>ow to 6ile the Capital "ains Tax 'eturn
/ Nou just ha$e to #le the Capital "ains Tax return in
triplicate (two copies for the 5)' and one copy for the
taxpayer with the Authori&ed Agent 5ank (AA5 in the
'e$enue @istrict where the property is located! along
with the documentary reHuirements and the tax due(
/ )n places where there are no AA5! the return will be
#led directly with the 'e$enue Collection 8%cer or
Authori&ed City or Gunicipal Treasurer(
:ample C"T computation
A residential condominium in Gakati City with a Ooor area of
34sHm has a :elling 1rice (:1 of -(4G( The existing &onal
$alue per sHuare meter for that condo in Gakati is currently
1hp34!4440sHm( Nou ha$e called the owner and found out that
he is not engaged in the real estate business(
>e also told you that as part of the deal! the buyer shall
shoulder the C"T( As the buyer! how much is the C"T which
you will ha$e to pay the seller on top of the selling price?
6irst letCs compute for the 6air market Value (6GV9
6GVPQonal Value x 6loor Area
P34!444 pesos0sHm x 34sHm
P.!344!444 pesos
:ince 6GV is higher than :1! we shall use 6GV to
compute the C"T9
C"TP+, x 6GV
P4(4+ x .!344!444 pesos
P-34!444 pesos
Therefore! the buyer shall ha$e to shell out an
additional -34!444 pesos(
*ote that while technically! the C"T is always the
responsibility of the seller! and that if the buyer
shoulders the C"T! it is in eFect part of the selling price
to be compared to 6GV for purposes of computing the
+, C"T! ) noted that the practice of banks is to
compute the C"T this way(
*ow! what if you called up the seller and told him that
you are willing to buy the property but he should
shoulder the capital gains tax as the seller! then he
counters your oFer and says he is willing to shoulder
the C"T up to his selling price and the buyer shall
shoulder the C"T for the excess or the diFerence
between the :1 and 6GV! how do you compute for the
C"T?
6irst! letCs compute for the excess or diFerence between the
:1 and the 6GV9
KxcessP6GV/:1
P.!344!444pesos R -!444!444pesos
P-!344!444 pesos
*ow! letCs compute for the C"T to be shouldered by the buyer9
C"T for the buyer P+, x Kxcess
P4(4+ x -!344!444 pesos
P24!444 pesos
The C"T to be shouldered by the seller is as follows9
C"TP+, x :1
P4(4+ x -!444!444 pesos
P+4!444 pesos
Take note that the total C"T is 24!444 pesos S +4!444
pesos P -34!444 pesos! which is consistent with our
#rst computation( The C"T was just split between the
buyer and the seller(
As in$estors! we should always try to negotiate for the
best terms and in relation to this particular example!
always try to ha$e the other party shoulder the C"T(
The seller will still be the one to #le the C"T and he
shall ha$e to #le the return in an Authori&ed Agent
5ank within the 'e$enue @istrict where the property is
located in Gakati! within <4 days the deed of sale was
executed(
Real Property Tax ('1T
What is '1T
/ tax that owners of real property need to pay e$ery
year so that the local go$ernment unit (?"7 will not
auction oF their property(
/ the tax on real property imposed by the ?ocal
"o$ernment 7nit (?"7( The legal basis is Title )) of the
?ocal "o$ernment Code (?"C! 'epublic Act ('(A( no(
A-+4
/ The '1T for any year shall accrue on the #rst day of
Lanuary and from that date it shall constitute a lien on
the property which shall be superior to any other lien!
mortgage! or encumbrance of any kind whate$er! and
shall be extinguished only upon payment of the
delinHuent tax(
/ )f you ha$e prior yearsC delinHuencies! interests! and
penalties! your '1T payment shall #rst be applied to
them( 8nce they are settled! your tax payment may be
credited for the current period(
Who should pay the '1T
/ The owner or administrator of the property
Where to pay
/ At the City or municipal treasurerCs o%ce
When to pay
/ )f you choose to pay for one whole year! the payment
is due on or before Lanuary <-(
/ )f the basic '1T and the additional tax accruing to the
:pecial Kducation 6und (:K6 are paid in ad$ance! the
sanggunian concerned may grant a discount not
exceeding twenty percent (.4, of the annual tax due(
/ )f you choose to pay in installments! the four Huarterly
installments shall be due on or before the last day of
each Huarter! namely9 Garch <-! Lune <4! :eptember
<4! and @ecember <-
/ )n case of failure to pay the basic '1T and other taxes
when due! the interest at the rate of two percent (.,
per month shall be imposed on the unpaid amount!
until fully paid(
/ The maximum number of months is thirty/six (<+
months! so eFecti$ely! the maximum interest rate is
se$enty/two percent (A.,(
>ow do you compute real property tax ('1T?
'1T P '1T 'ate x Assessed Value
What are the '1T rates?
Gaximum '1T rates9
Co$erage '1T rate
Cities and Gunicipalities within Getro
Ganila
.,
1ro$inces -,
:pecial Kducation 6und (:K6 R -,
)n addition to the basic '1T! the ?"7Cs may
le$y and collect an annual tax of one percent
(-, which shall accrue exclusi$ely to the
:pecial Kducation 6und (:K6(
Ad Valorem Tax on )dle ?ands R 3,
)n addition to the basic '1T! the ?"7Cs may
collect a maximum idle land tax is 3, assessed
$alue of the property(
>ow do you compute the Assessed Value?
Assessed Value P 6air Garket Value x Assessment
?e$el
:ec( -22 (l of the ?"C de#nes B6air Garket ValueD as
the price at which a property may be sold by a seller
who is not compelled to sell and bought by a buyer
who is not compelled to buy(
)n practice! howe$er! the 6air Garket Value is based on
the assessment of the municipal or city assessor as
written in the Tax @eclaration(
The Assessment ?e$el shall be #xed through
ordinances of the :angguniang 1anlalawigan!
:angguniang 1anglungsod! or the :angguniang
1ambayan of the municipality within the Getro Ganila
area( To get this data! look for the tax 8rdinance of the
city or municipality where your property is located(
Gaximum Assessment ?e$el rates
)( ?and
Class Assessment ?e$el
'esidential .4,
Timberland .4,
Agricultural =4,
Commercial 34,
)ndustrial 34,
Gineral 34,
/
))( 5uilding and 8ther :tructures
'esidential
6GV 8$er 5ut *ot 8$er Assessment ?e$el
4(44 -A3!444(44 4,
-A3!444(44 <44!444(44 -4,
<44!444(44 344!444(44 .4,
344!444(44 A34!444(44 .3,
A34!444(44 -!444!444(44 <4,
-!444!444(44 .!444!444(44 <3,
.!444!444(44 3!444!444(44 =4,
3!444!444(44 -4!444!444(44 34,
-4!444!444(44 +4,
/
.( Agricultural
6GV 8$er 5ut *ot 8$er Assessment ?e$el
<44!444(44 .3,
<44!444(44 344!444(44 <4,
344!444(44 A34!444(44 <3,
A34!444(44 -!444!444(44 =4,
-!444!444(44 .!444!444(44 =3,
.!444!444(44 34,
/
<( Commercial0)ndustrial
6GV 8$er 5ut *ot 8$er Assessment
?e$el
<44!444(44 <4,
<44!444(44 344!444(44 <3,
344!444(44 A34!444(44 =4,
A34!444(44 -!444!444(44 34,
-!444!444(44 .!444!444(44 +4,
.!444!444(44 3!444!444(44 A4,
3!444!444(44 -4!444!444(4 A3,
4
-4!444!444(4
4
M4,
/
=( Timberland
6GV 8$er 5ut *ot
8$er
Assessment
?e$el
<44!444(44 =3,
<44!444(44 344!444(44 34,
344!444(44 A34!444(44 33,
A34!444(44 -!444!444(4
4
+4,
-!444!444(4
4
.!444!444(4
4
+3,
.!444!444(4
4
A4,
/
))( Gachineries
Class Assessment ?e$el
Agricultural =4,
'esidential 34,
Commercial M4,
)ndustrial M4,
:pecial Classes of 'eal 1roperty
All lands! buildings! and other impro$ements thereon
actually! directly and exclusi$ely used for hospitals!
cultural! or scienti#c purposes! and those owned and
used by local water districts! and go$ernment/owned or
controlled corporations rendering essential public
ser$ices in the supply and distribution of water and0or
generation and transmission of electric power
What are the assessment le$els for special classes of
real property?
Actual 7se Assessmen
t ?e$el
Cultural -3,
:cienti#c -3,
>ospital -3,
?ocal water districts -4,
"o$ernment/owned or controlled
corporations engaged in the supply
and distribution of water and0or
generation and transmission of
electric power
-4,
What are )dle ?ands?
-( Agricultural lands more than one (- hectare in area!
suitable for culti$ation! dairying! inland #shery! and
other agricultural uses! T of which remain unculti$ated
or unimpro$ed(
Kxceptions
i( ?ands planted to permanent or perennial
crops with at least 34 trees to a hectare; and
ii( ?ands used for gra&ing purposes (*ote9 put
goats or cows on your property(
.( ?ands 8ther than Agricultural! located in a city or
municipality! more than -!444 sHm( in area! T of which
remain unutili&ed or unimpro$ed
<( 'esidential lots in subdi$isions! regardless of land
area
Transfer Tax
- imposed on tax on the sale! donation! barter! or
any other mode of transferring ownership or title
of real property at the maximum rate of 34, of -,
(A3, of -, in the case of cities and municipalities
within Getro Ganila of the total consideration
in$ol$ed in the acHuisition of the property or of the
fair market $alue in case the monetary
consideration in$ol$ed in the transfer is not
substantial! whiche$er is higher(
- This is pursuant to :ection -<3 of the ?ocal
"o$ernment Code of -22- (?"C(
III Nou need to pay the transfer tax because the
e$idence of its payment is reHuired by the 'egister of
@eeds of the pro$ince concerned before registering any
deed(
III This is also reHuired by the pro$incial assessor
before cancelling an old tax declaration and issuing a
new one in its place(
III @o not confuse the transfer tax which is paid to the
local go$ernment with the transfer taxes due to the 5)'
(which may either be donorCs or estate taxes(
Who should pay
/ The payment of the transfer tax is the responsibility
of the seller! donor! transferor! executor or and
administrator(
When to pay
/ The deadline for payment is sixty (+4 days from the
date of the execution of the deed or from the date of
the decedentCs death(
III :urcharges and penalties for late payments (as per
section -+M of 'A A-+4
o :urcharge R *o more than twenty/#$e
percent (.3, of the amount of taxes! fees
or charges not paid on time
o 1enalty R *o more than two percent (.,
per month of the unpaid taxes! fees or
charges including surcharges! until such
amount is fully paid! but in not to exceed
thirty/six (<+ months or se$enty/two
percent (A.,(
Where to pay
/ The transfer tax is to be paid at the TreasurerCs 8%ce
of the city or municipality where the property is
located(
'eHuirements
the reHuirements for the payment of transfer tax are
the following9
Certi#cate Authori&ing 'egistration from the
5)';
'ealty tax clearance from the TreasurerCs
8%ce; and
8%cial receipt of the 5ureau of )nternal
'e$enue (for documentary stamp tax(
Transfer Tax 'ates
Nou ha$e to check the rates on a per city or per
municipality basis as the ?"C only pro$ides for the
maximum rates(
Documentary Stamp Tax
- There are diFerent @:T rates on diFerent types of
transactions(
- there is @:T too on loan agreements! lease
agreements! and mortgages! and there are also
exemptions from @:T(
DST on the sale of real property
:ection -2+ of the Tax Code! as amended! pro$ides9
B:KC( -2+( :tamp Tax on @eeds of :ale and
Con$eyances of 'eal 1roperty( U 8n all con$eyances!
deeds! instruments! or writings! other than grants!
patents or original certi#cates of adjudication issued by
the "o$ernment! whereby any land! tenement or other
realty sold shall be granted! assigned! transferred or
otherwise con$eyed to the purchaser! or purchasers! or
to any other person or persons designated by such
purchaser or purchasers! there shall be collected a
documentary stamp tax! at the rates herein below
prescribed! based on the consideration contracted to
be paid for such realty or on its fair market $alue
determined in accordance with :ection +(K of this
Code! whiche$er is higher9 1ro$ided! That when one of
the contracting parties is the "o$ernment! the tax
herein imposed shall be based on the actual
consideration9
(a When the consideration! or $alue recei$ed
or contracted to be paid for such realty! after
making proper allowance of any encumbrance!
does not exceed 8ne thousand pesos (1-!444!
6ifteen pesos (1-3(44(
(b 6or each additional 8ne thousand pesos
(1-!444! or fractional part thereof in excess of
8ne thousand pesos (1-!444 of such
consideration or $alue! 6ifteen pesos (1-3(44(
When it appears that the amount of the documentary
stamp tax payable hereunder has been reduced by an
incorrect statement of the consideration in any
con$eyance! deed! instrument or writing subject to
such tax the Commissioner! pro$incial or city Treasurer!
or other re$enue o%cer shall! from the assessment
rolls or other reliable source of information! assess the
property of its true market $alue and collect the proper
tax thereon(D
/ To compute the @:T! di$ide the higher amount
between the selling price and the fair market $alue by
1-!444(44! then round oF the amount to next higher
number if there are decimals! then multiply it by
1-3(44( As a shortcut! multiply the higher amount
between the selling price and the fair market $alue by (
4-3 and if the @:T is not a multiple of -3! the @:T shall
be the next higher multiple of -3(
/ Take note that if the tax base is incorrect (for
example! the selling price or the &onal $alue is
understated to lower the @:T! the true $alue of the
property may be assessed so that the proper tax may
be collected(
DST on loan agreements
)f you will be taking out a loan! another type of @:T
may be imposed( :ection -A2 of the Tax Code! as
amended! pro$ides for the @:T on loan agreements! as
follows9
B:KC( -A2( :tamp Tax on All @ebt )nstruments( U 8n
e$ery original issue of debt instruments! there shall be
collected a documentary stamp tax on 8ne peso
(1-(44 on each Two hundred pesos (1.44! or
fractional part thereof! of the issue price of any such
debt instruments9 1ro$ided! That for such debt
instruments with terms of less than one (- year! the
documentary stamp tax to be collected shall be of a
proportional amount in accordance with the ratio of its
term in number of days to three hundred sixty/#$e
(<+3 days9 1ro$ided! further! That only one
documentary stamp tax shall be imposed on either
loan agreement! or promissory notes issued to secure
such loan(
6or purposes of this section! the term debt instrument
shall mean instruments representing borrowing and
lending transactions including but not limited to
debentures! certi#cates of indebtedness! due bills!
bonds! loan agreements! including those signed abroad
wherein the object of contract is located or used in the
1hilippines! instruments and securities issued by the
go$ernment of any of its instrumentalities! deposit
substitute debt instruments! certi#cates or other
e$idences of deposits that are either drawing interest
signi#cantly higher than the regular sa$ings deposit
taking into consideration the si&e of the deposit and
the risks in$ol$ed or drawing interest and ha$ing a
speci#c maturity date! orders for payment of any sum
of money otherwise than at sight or on demand!
promissory notes! whether negotiable or non/
negotiable! except bank notes issued for circulation(D
/ @:T on loan agreements (which may be taken out in
order to purchase real property is thus computed as
1-(44 for e$ery 1.44(44( To compute the @:T! di$ide
the loan amount by 1.44(44! then round oF the
amount to next higher number if there are decimals( As
a shortcut! multiply the loan amount by (443 and round
oF the amount to next higher number if there are
decimals(
@:T on lease agreements
/ )f you will be leasing out your property! @:T will be
imposed at the rate of 1<(44 for the #rst 1.!444(44 and
an additional 1-(44 for e$ery 1-!444(44 in excess of
the #rst 1.!444(44 pursuant to :ection -2= of the Tax
Code! to wit9
B:ection -2=( :tamp tax on ?eases and 8ther >iring
Agreements( R 8n each lease! agreement!
memorandum! or contract for hire! use or rent of any
lands or tenements! or portions thereof! there shall be
collected a documentary stamp tax of Three pesos
(1<(44 for the #rst Two thousand pesos (1.!444! or
fractional part thereof! and an additional 8ne peso
(1-(44 for e$ery 8ne Thousand pesos (1-!444 or
fractional part thereof! in excess of the #rst Two
thousand pesos (1.!444 for each year of the term of
said contract or agreement(D
To compute @:T! multiply the monthly rent by -.
months and then by the number of years stated in the
contract( :ubtract 1.!444(44 and multiply the amount
by (44-! then add 1<(44(
6or example! the monthly rent is 1-4!444(44! and the
contract is for < years( The @:T is computed as follows9
Gonthly rent 1-4!444(44
Gultiply by -. months
Annual rent P 1-.4!444(44
Gultiply by < years
Total contract amount P 1<+4!444(44
:ubtract 1.!444 P 1<3M!444(44
Gultiply this by (44- P 1<3M
1lus 1<(44
@:T P 1<+-(44
As a shortcut! multiply the contract amount by (44-
and add 1-(44 to get the @:T(
)f the total contract amount is not a multiple of
1-!444(44! for example! itCs 1<+4!344(44! round it up to
the next -!444 then multiply the contract amount by (
44- and add 1-(44 to get the @:T(
DST on mortgages
:ection -23 of the Tax Code pro$ides9
B:ection -23( :tamp Tax on Gortgages! 1ledges and
@eeds of Trust( R 8n e$ery mortgage or pledge of
lands! estate! or property! real or personal! heritable or
mo$able! whatsoe$er! where the same shall be made
as a security for the payment of any de#nite and
certain sum of money lent at the time or pre$iously
due and owing of forborne to be paid! being payable
and on any con$eyance of land! e
state! or property whatsoe$er! in trust or to be sold! or
otherwise con$erted into money which shall be and
intended only as security! either by express stipulation
or otherwise! there shall be collected a documentary
stamp tax at the following rates9
(a When the amount secured does not exceed 6i$e
thousand pesos (13!444! Twenty pesos (1.4(44(
(b 8n each 6i$e thousand pesos (13!444! or fractional
part thereof in excess of 6i$e thousand pesos (13!444!
an additional tax of Ten pesos (1-4(44(
8n any mortgage! pledge! or deed of trust! where the
same shall be made as a security for the payment of a
Ouctuating account or future ad$ances without #xed
limit! the documentary stamp tax on such mortgage!
pledge or deed of trust shall be computed on the
amount actually loaned or gi$en at the time of the
execution of the mortgage! pledge or deed of trust!
additional documentary stamp tax shall be paid which
shall be computed on the basis of the amount
ad$anced or loaned at the rates speci#ed abo$e9
1ro$ided! howe$er! That if the full amount of the loan
or credit! granted under the mortgage! pledge or deed
of trust shall be computed on the amount actually
loaned or gi$en at the time of the execution of the
mortgage! pledge or deed of trust( >owe$er! if
subseHuent ad$ances are made on such mortgage!
pledge or deed of trust! additional documentary stamp
tax shall be paid which shall be computed on the basis
of the amount ad$anced or loaned at the rates
speci#ed abo$e9 1ro$ided! howe$er! That if the full
amount of the loan or credit! granted under the
mortgage! pledge or deed of trust is speci#ed in such
mortgage! pledge or deed of trust! the documentary
stamp tax prescribed in this :ection shall be paid and
computed on the full amount of the loan or credit
granted(D
To compute @:T! subtract 13!444 from the contract
amount! then di$ide whatCs left by 13!444(44 and round
oF any decimal to the higher number( Gultiply this by
-4 then add 1.4(44(
To illustrate! if the amount secured is 1-4+!444(44! the
@:T is computed as follows9
Amount secured 1-4+!444(44
:ubtract 13!444 P -4-!444
@i$ide by 13!444(44 P .4(.4
'ound oF to higher number P .-
Gultiply by -4 P .-4
Add .4 P 1.<4 @:T
As a shortcut! di$ide the contract amount by 13!444(44
and round oF any decimal to the higher number(
Gultiply this by -4 then add 1-4(44(
Exemptions from DST
:ection -22 of the Tax Code! as amended! pro$ides the
documents which are exempt from @:T! including loan
agreements which does not exceed 1.34!444! $i&9
B(d ?oan agreements or promissory notes! the
aggregate of which does not exceed Two hundred #fty
thousand pesos (1.34!444! or any such amount as
may be determined by the :ecretary of 6inance!
executed by an indi$idual for his purchase on
installment for his personal use or that of his family
and not for business or resale! barter or hire of a
house! lot! motor $ehicle! appliance or furniture9
1ro$ided! howe$er! That the amount to be set by the
:ecretary of 6inance shall be in accordance with a
rele$ant price index but not to exceed ten percent
(-4, of the current amount and shall remain in force
at least for three (< years(D
Deadline for fling the DST return
7nder 'e$enue 'egulations ('' *o( 3/.442 dated
Garch -+! .442! the @:T 'eturn (5)' 6orm *o( .444/
8T shall be #led within #$e (3 days after the close of
the month when the taxable document was made!
signed! accepted or transferred( 6or example! the @:T
on a taxable document signed on April -3! .442 will be
due on Gay 3! .442(
Venue for fling the DST return
The @:T due shall be paid at the same time the
aforesaid return is #led with the AA5 ha$ing jurisdiction
o$er the place where the property being transferred is
located based on the consideration contracted to be
paid for such realty or on its fair market $alue
determined in accordance with :ection +(K of the Tax
Code! whiche$er is higher(
Donors Tax
/ @onation of properties are subject to donorCs tax
Why donate your properties prior to death?
/ @onation may be considered as an estate planning
tool because you are able to transfer your properties
prior to death little by little e$ery year and therefore
you can take ad$antage of the graduated donorCs tax
rates(
5K*K6)T:9
/ )f you ha$e a lot of properties at the time of death!
the estate taxI would be higher because the total
amount of the properties will probably fall under a
higher tax range
I (the tax that needs to be paid after death
/ it is usually the case that the family spends a lot for
medical care prior to death! and because of this! the
familyCs cash reser$es are depleted( )f the family is not
liHuid and they need to pay the estate tax within six
months from the time of death! many times the family
is forced to sell their properties below market $alue
because they are under time pressure( )t is during
these pressure points that many in$estors are able to
buy good properties at a good price
/ Another problem that may arise upon death is that
the children or heirs will be #ghting each other for their
BrightfulD share of the deceasedCs property( )f the
properties are already distributed as agreed upon by all
parties prior to death! then this problem may be
alle$iated(
/ a person who already thought in ad$ance of the
transfer of properties prior to death! and actually had
no more signi#cant properties to transfer upon death!
would be at peace upon death because he0she did not
lea$e problems to his0her family(
What is @onorCs Tax?
/ imposed on the transfer by any person! resident or
non/resident! of a property by gift(
What is the tax base?
/ The donorCs tax base shall be the total $alue of the
net gifts during the taxable year(
/ The $alue of the net gifts shall be based on the fair
market $alue (6GV of the gifts at the time of
donation( )n case of real property! the tax base shall
be the 5)' Qonal Value or 6GV per Tax @eclaration!
whiche$er is higher(
/ )f there is no Qonal Value! the tax base shall be the
6GV based on the latest tax declaration( )f there is an
impro$ement (like a house or a building! the 6GV of
the impro$ement shall be the construction cost based
on the building permit and0or occupancy permit plus
-4, per year after the year of construction! or the 6GV
based on the latest tax declaration(
/ The term Bnet giftD! for purposes of donorCs tax!
pertains to the net economic bene#t which the done
gets from the transfer( Thus! if a property encumbered
with a mortgage is transferred as a gift! but the donee
is reHuired to pay the mortgage! then the net gift is
computed by deducting the amount of mortgage
assumed by the donee from the fair market $alue of
the property gi$en as a gift(
/ )f you donate on diFerent dates within a year! a
donorCs tax return shall be #led for each date of
donation! and the donorCs tax base shall be based on
the accumulated donations for the current calendar
year (Lanuary - to @ecember <-(
/ Thus! the more gifts you make within a calendar year!
the higher the probability that the donorCs tax will fall
on a higher tax bracket(
III *ote though! that donorCs tax pre$iously
paid on pre$ious donations shall be deducted
from the donorCs tax payable( The good news
here is that you will get a fresh start for each
year! and eFecti$ely! you can donate 1-44!444
in cash or in kind at &ero donorCs tax(
/ Nou may e$en donate cash which the donee can use
to purchase property! so the property can be in the
name of the donee( 6or example! a parent can donate
cash for installment payments of property so that the
property may be declared in their childCs name! since
the child cannot purchase directly without a source of
income(
III note that in case of donation to relati$es
(not strangers! only one return shall be #led
for se$eral gifts0donations by the donor (the
one gi$ing the donation to the diFerent
donees (those recei$ing the donation on the
same date( )f the gift0donation in$ol$es
conjugal or community property! each spouse
shall #le a separate return for their respecti$e
shares in the said property(
@eemed "ift
)f you purchased a property below its fair market $alue
(6GV! the diFerence between the 6GV and the selling
price shall be deemed a gift of the seller! subject to
donorCs tax( This is also called a transfer for less than
adeHuate consideration(
Kxemptions from @onorCs Tax
@owries or gifts made on account of marriage and
before its celebration or within one year thereafter by
parents to each of their legitimate! recogni&ed natural!
or adopted children to the extent of the #rst Ten
thousand pesos (1-4!444;
"ifts made to or for the use of the *ational
"o$ernment or any entity created by any of its
agencies which is not conducted for pro#t! or to any
political subdi$ision of the said "o$ernment; and
"ifts in fa$or of an educational and0or charitable!
religious! cultural or social welfare corporation!
institution! accredited non/go$ernment organi&ation!
trust or philanthropic organi&ation or research
institution or organi&ation! pro$ided! howe$er! That not
more than thirty percent (<4, of said gifts shall be
used by such donee for administration purposes(
III5ased on the 5)' website! the following are likewise
exempt from donorCs tax9
/ Kncumbrances on the property donated if assumed by
the donee in the deed of donation
/ @onations made to the following entities as exempted
under special laws9
AHuaculture @epartment of the :outheast
Asian 6isheries @e$elopment Center of the
1hilippines
@e$elopment Academy of the 1hilippines
)ntegrated 5ar of the 1hilippines
)nternational 'ice 'esearch )nstitute
*ational :ocial Action Council
'amon Gagsaysay 6oundation
1hilippine )n$entorCs Commission
1hilippine American Cultural 6oundation
Task 6orce on >uman :ettlement on the
donation of eHuipment! materials and ser$ices
What are the @onorCs Tax rates?
The donorCs tax rate will be based on the law pre$ailing
at the time of donation(
6or donations made on Lanuary -! -22M up to the
present! if the donee is a stranger! the donorCs tax rate
is thirty percent (<4,(
A stranger is a person who is not a brother! sister
(whether by whole or half/blood! spouse! ancestor and
lineal descendant! or a relati$e by consanguinity in the
collateral line within the fourth degree of relationship(
This just means you are related by blood! and you
count the degree by going up #rst to the person who
BconnectsD you then go down(
8$er 5ut not
o$er
The tax
shall be
1lus 8f the
excess
o$er
4 -44!444 Kxempt
-44!444 .44!444 4 ., -44!444
.44!444 344!444 .!444 =, .44!444
344!444 -!444!444 -=!444 +, 344!444
-!444!444 <!444!444 ==!444 M, -!444!444
<!444!444 3!444!444 .4=!444 -4, <!444!444
3!444!444 -4!444!44
4
=4=!444 -., 3!444!444
-4!444!44
4
-!44=!444 -3, -4!444!44
4
6or example! your #rst cousin is within the fourth
degree( Nou go BupD to your dad (- degree! then BupD
to your lolo (- degree! then go BdownD to your uncle
who is your dadCs brother (- degree! then BdownD to
your #rst cousin (- degree! so = degrees in all(
*ote that a child who is legally adopted is not
considered a stranger( @onations between corporations
or from an indi$idual to a corporation shall be
considered as donations to a stranger(
)f the donee is not a stranger! the donorCs tax rate!
based on the net gifts! are as follows9

Who should pay
The donor or the transferor for less than adeHuate
consideration
When to pay
Within thirty (<4 days after the date the gift is made( )f
more than one gift or donation is made within one
year! a separate return should be #led for each
gift0donation within thirty (<4 days after the date the
gift is made(
Where to #le and pay0 6iling procedure
1repare three copies of the donorCs tax return (two
copies shall be for the 5)' and one copy shall be for the
taxpayer and #le them with any Authori&ed Agent
5ank (AA5 of the 'e$enue @istrict 8%ce ('@8 ha$ing
jurisdiction o$er the place of the domicile of the donor
(that is! where the donor li$es at the time of the
transfer(
)n places where there are no AA5! the return will be
#led directly with the 'e$enue Collection 8%cer or duly
Authori&ed City or Gunicipal Treasurer where the donor
was domiciled at the time of the transfer(
/ )f the donor has no legal residence in the 1hilippines!
#le the return with 'e$enue @istrict *o( <2 R :outh
Vue&on City (this is along Vue&on A$enue! with a @51
branch at the ground Ooor(
/ )n the case of gifts made by a non/resident alien (that
is! not a 6ilipino citi&en! the return may be #led with
'e$enue @istrict *o( <2! :outh Vue&on City! or with the
1hilippine Kmbassy or Consulate in the country where
donor is domiciled at the time of the transfer(
1enalties for late payment
:ame as other taxes! .3, surcharge plus .4, interest
per year (under :ecs( .=M and .=2 of the Tax Code!
respecti$ely( )f there is fraud! the surcharge shall be
34,( Nou may also pay compromise penalties in lieu of
imprisonment
@ocumentary reHuirements
5ased on the 5)' website! the following reHuirements
must be submitted before the Tax Clearance
Certi#cate0Certi#cate Authori&ing 'egistration (that is!
the document reHuired for the title to be transferred
can be released9
-( @eed of @onation
.( :worn :tatement of the relationship of the donor to
the donee
<( 1roof of tax credit! if applicable
=( Certi#ed true copy(ies of the
8riginal0Transfer0Condominium Certi#cate of Title
(front and back of lot and0or impro$ement donated!
if applicable
3( Certi#ed true copy(ies of the latest Tax @eclaration
(front and back pages of lot and0or impro$ement! if
applicable
+( BCerti#cate of *o )mpro$ementD issued by the
AssessorCs o%ce where the properties ha$e no
declared impro$ement! if applicable
A( 1roof of $aluation of shares of stocks at the time of
donation! if applicable
W 6or listed stocks R newspaper clippings or
certi#cation issued by the :tock Kxchange as to
the par $alue per share
W 6or unlisted stocks R latest audited 6inancial
:tatements of the issuing corporation with
computation of the book $alue per share
M( 1roof of $aluation of other types of personal
properties! if applicable
2( 1roof of claimed deductions! if applicable
-4( Copy of Tax @ebit Gemo used as payment! if
applicable
Additional reHuirements may be reHuested for
presentation during audit of the tax case depending
upon existing audit procedures(
@ocumentation of the donation
Consult a lawyer with regard to the format of the @eed
of @onation! and make sure that the donation is
properly accepted and notari&ed during the lifetime of
the donor(