Land Donation questions

**papi smith** · February 6th, 2023 07:10 PM

But this applies if you buy from developers only di ba. But if you get it from an owner then CGT lang and no VAT di ba?

**boybi** · February 6th, 2023 08:47 PM

Originally Posted by papi smith

But this applies if you buy from developers only di ba. But if you get it from an owner then CGT lang and no VAT di ba?

Nag donate ako to my son and I’m not a property developer, pinagbayad ako ng VAT because commercial property daw yung lot.

**papi smith** · February 6th, 2023 10:49 PM

Originally Posted by boybi

Nag donate ako to my son and I’m not a property developer, pinagbayad ako ng VAT because commercial property daw yung lot.

Oh sorry, I was referring to Ry Tower's reply which applies to sales by property developers.

As for donations, I'm not really sure. Iniisip ko lang na kung sale, baka walang VAT, but then medyo mahirap din ma question ng BIR if the recipient is still so young to have the money to acquire a commercial lot. Unless ang allowance nya kayang bumili talaga [emoji3526] Tax free naman ang allowance hehe.

**Ry_Tower** · February 7th, 2023 12:09 PM

Originally Posted by papi smith

But this applies if you buy from developers only di ba. But if you get it from an owner then CGT lang and no VAT di ba?

As boybi said, even if you buy from the owner but the BIR assessed that it has commercial value, then they have the right to levy for VAT instead of CGT. It's the nature of the real property and not the ownership which matters.

BIR will always go for the higher tax.

**boybi** · February 7th, 2023 12:40 PM

Originally Posted by Ry_Tower

As boybi said, even if you buy from the owner but the BIR assessed that it has commercial value, then they have the right to levy for VAT instead of CGT. It's the nature of the real property and not the ownership which matters.

BIR will always go for the higher tax.

CGT + VAT pinabayad sa akin.

**Vodka** · February 7th, 2023 01:30 PM

Originally Posted by boybi

CGT + VAT pinabayad sa akin.

wow cgt lang dati, kahit commercial properties

yang additional vat, is that due to train law?

**Walter** · February 7th, 2023 02:01 PM

How is the VAT calculated? ...

**papi smith** · February 7th, 2023 02:03 PM

So dapat pala, next buy ng property ipangalan na sa heir as yan naman eventually mangyayari . Hindi ka na nga tumubo pero bayad ka pa rin ng capital gains tax, dodoblehan ka pa ng Value Added tax.

**Walter** · February 7th, 2023 02:17 PM

Just have heir execute SPA ...

**boybi** · February 7th, 2023 02:46 PM

Originally Posted by Vodka

wow cgt lang dati, kahit commercial properties

yang additional vat, is that due to train law?

No idea. After ma-process na mga docs and nabayaran na CGT tsaka humirit BIR ng VAT. No choice na ako.

Originally Posted by Walter

How is the VAT calculated? ...

Hindi ko na inalam. Syempre alam nyo naman saan hahantong ang 'tawaran' sa VAT.

Originally Posted by papi smith

So dapat pala, next buy ng property ipangalan na sa heir as yan naman eventually mangyayari . Hindi ka na nga tumubo pero bayad ka pa rin ng capital gains tax, dodoblehan ka pa ng Value Added tax.

Problema if minor pa ang heir.