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Capital Gains Tax

Post modified: March 23, 2022

By Bryan Villarosa

By Bryan Villarosa

Licensed Real Estate Salesperson based in Bacolod City, Negros Occidental. Contact form

I understand that buying your condo or house can be overwhelming. That's why I offer personalized service, price comparisons, and make the process as smooth and stress-free as possible especially if you are outside Bacolod City. I am adept in using online communication tools so you can stay informed.

Whether you're just starting to explore your options or you're ready to make an offer, I'm here to guide you every step of the way.

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What is Capital Gains Tax (CGT)? It is a final tax assessed on the presumed gain derived by citizens and resident aliens, as well as estates and trusts, from the sale or exchange of real property. (Section 24(d) of the National Internal Revenue Code of 1997)

Who and what are liable?

  • Natural persons or individuals
  • Citizens
  • Resident aliens
  • Estates
  • Trusts
  • Sale, exchange, or other disposition of real property
  • Pacto de retro sales
  • Conditional sales

What is the exception?

If the proceeds are used to construct or acquire a new principal residence within 18 months.

Where shall the 6% be charged?

Gross selling price or current fair market value, whichever is higher.

Are corporations liable for CGT? No.

They are liable for ordinary income tax included in Corporation’s return, but still 6%. (VILE vs. CA)

Capital Gains Tax on Corporations (Chapter IV, Section 27 of 1997 NIRC) – Capital Gains from the sale of lands or buildings: Final tax of 6% on the gain from properties not used as a business, but are treated as capital assets, based on gross selling price or fair market value (determined based on Section 6(e) of 1997 NIRC) whichever is higher. The gains from the sale should be included in a corporation’s return (Income Tax Return) pursuant to Sections 24(a) and 45 of 1997 NIRC.

Reserve or schedule a viewing: Capital Gains Tax by Bryan Villarosa

Reserve or schedule a viewing: Capital Gains Tax by Bryan Villarosa

Licensed Real Estate Salesperson based in Bacolod City, Negros Occidental.

I understand that buying a lot, condo or house can be overwhelming. That's why we offer personalized services, price comparisons, and ensure that the process is smooth as possible especially if you are outside Bacolod City.

I am well-versed in online tools such as Zoom, Messenger Video Calls, Viber, Whatsapp, and digital signatures. Whether you're just starting to explore your options or you're ready to make an offer, I'm here to guide you every step of the way.

I have been living in Bacolod City since six years old. As a certified local, I have practical familiarity with places, where to eat, how to move about, what shops or businesses could be best, and other local area scenarios. Currently a law student | Contact form

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