REAL ESTATE TAXATION:

Value-Added Tax (VAT)

• This is 12% of the total purchase price, zonal value or tax declaration value of the property, whichever is higher.

Exemptions of the VAT:

• Lots bought below Php1,500,000
• Residential property below Php2,500,000

Documentary Stamp Tax

• Payable to the BIR upon the execution of the Deed of Sale (DOS)
• Equivalent to 1.5% of the purchase price, zonal value or tax declaration value of the property, whichever is higher.

Local Transfer Tax

• Rate is 50% of 1% of the purchase price, zonal value or tax declaration value of the property, whichever is higher.

Registration Fees

• Payable to the Registry of Deeds
• The fee is Php8,796 for the first Php1,700,000 plus Php90 for every Php20,000 or a fraction thereof in excess of Php1,700,000