Taxation under BIR

1. Capital Gains Tax

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.
tax rate - Fixed rate of 6% of tax base.
due date - Payable within 3o days from date of execution or actual payment.

2. Creditable Withholding Tax

A final income tax applicable to ordinary asset on sale, exchange, or assignment.
tax rate:

Not habitually engaged in in Real Estate, like acquired assets of banks.

• 6% x Tax Base (regardless of amount)

Habitually engaged in real estate, like dealer or developer

• 1.5% if selling price is Php. 5000,000.00 or below
• 3.0% if selling price is over Php. 500,000.00 up to Php. 2,000,000.00
• 5.0% if selling price is over Php. 2,000,000.00

how to compute:

• For cash or deferred sale
• CWT = ApplicRate x Tax Baseable
• For Installment Sale
• CWT = Applicable Rate x Amount Received or Paid

due date - On or before the 10th day of the following month.

3. Documentary Stamp Tax

A tax on documents or instruments for registration of sale, annotation of mortgage or transfer of properties properties. Also in transfer of stocks.
tax rate:

1. On Sale - 1.5% of Tax base
2. On Mortgage - Php. 20.00 on 1st Php. 5,000 + Php. 10.00 per succeeding Php. 5,000.00 or fraction thereof.
how to compute:

1. On Sale = 1.5% x Tax Base

2. On-Mortgage = (Amount of Mortgage x 0.2%) + Php. 10.00
or = Php. 20.00 for 1st Php. 5,000.00 + Php. 10.00 for
every succeding Php. 5,000.00 or fraction thereof

3. For Leases = Php. 3.00 for 1st Php. 2,000.00 and Php. 1.00 for every Php. 1,000.00 in excess of 1st Php. 2,000.00

due date - Payable on or before the 5th of the following after the months of sale.

4. Percentage Tax

Percentage tax is a business tax imposed on persons or entities who sell or lease goods, properties or services in the course of trade or business whose gross annual sales or receipts do not exceed php. 550,000.00 and are not VAT-registered

tax rate - 3% of Gross Sales or Receipts on person exempt on VAT

due date - Not later than 20th day following the end of each month

5. Donor's Tax

Donor's Tax is a tax on donation or gift, and is imposed on the gratuitous transfers of property between two or more persons who are living at the time of transfers.

tax rate: Please refer to BIR site for a table rates.

due date - Within 30 days after the date the gift (donation) is made.

6. Estate Tax

Estate Tax is a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfers, which are made by law as equivalent to testamentary disposition.

tax rate - Please refer to BIR site.

due date - File the return within six (6) months from decedent's death

For full details on the above taxation, please refer to www.bir.gov.ph

References: www.bir.gov.ph CES Academy and Manila Board C.R.E.S for Broker Manual

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