Ways to save Capital Gains Tax

Care of http://www.philippine-portal.com/property-acquisition/guidelines.html

Fees and Taxes

As a buyer you need to budget for the transfer tax of 0.5%, registration fee of 0.25% and documentary stamp tax of 1.5% of the contract price, zoned value or fair market value, whichever is higher, of the property.

If you decide to sell your property, you will need to pay all unpaid taxes of the property, Agent/Broker’s fee (if sold through an agent), and the capital gain tax of 6% of the contract price of the property, which should be paid and submitted within 30 days after each sale, exchange, transfer or other disposition of real property. However, if you use the proceeds from the sale of a property to acquire or construct a new property within 18 months of sale or disposition, you are exempted from paying the final capital gains tax.

In most cases, estate agent fee is 5% of the sale amount of either residential or commercial property, which is paid by the seller.

In addition, your agent or broker can do the registration process without any additional payments.