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  1. Join Date
    Sep 2005
    Posts
    79
    #1
    I am buying a lot inside the subd and I honestly don't have idea which taxes should be paid by the seller and the buyer. I know the buyer shoulders the doc stamps in transfering the title. but what about capital gains tax who should be shouldering this.. the buyer or the seller or both? malaki laki rin kasi ito... 6% ba ng selling price. is there a workaround to lower this.. just want to make it sure hindi ako maguyo ng mga ahente?... salamat!

  2. Join Date
    Jul 2011
    Posts
    447
    #2
    capital gains tax is shouldered by the seller not the buyer...
    pero both of your could come to a agreement..
    "under declare" the value of the lot... but not by much compared to original value...
    check BIR's site... i think they have calculations for zonal value....
    but remember not by much....
    it would pretty much give a smile to the seller considering more money would be saved.

    1.if your payment is check... make him sign a photocopy of it... not the "fake" value... but the original agreed value....
    2. make 2 deed of sale... one is the "fake" value.. and one is "original" value...
    but don't notarize the original value... only the fake...

    HTH GL
    kudos :D

  3. Join Date
    Dec 2005
    Posts
    38,973
    #3

    Transfer tax, which is 1% of the "selling price" is normally shouldered by the buyer....

    14.4K:out:

  4. Join Date
    Jul 2004
    Posts
    5,481
    #4
    CGT is always for the seller's account

    the seller is the one gaining from this capital transaction. seller is the one who files the return or report for this with the BIR

    but, the parties can agree on who actually bears the cost

    if agreed upon, sellers also can opt to sell their property at a price to cover the CGT due

  5. Join Date
    Dec 2005
    Posts
    38,973
    #5

    Misnomer nga iyang capital gains tax... You are not paying tax for the gain only (selling price less old buying price)....

    You are paying tax for the capital (whole selling price).... Dapat tawagin iyang capital tax...

    14.5K:higop:

  6. Join Date
    Sep 2005
    Posts
    13,039
    #6
    eh kasi mautak ang pinoy.. kung sa gains lang magbabayad.. eh di lahat nang bentahan palugi.. para walang CGT

    Quote Originally Posted by CVT View Post

    Misnomer nga iyang capital gains tax... You are not paying tax for the gain only (selling price less old buying price)....

    You are paying tax for the capital (whole selling price).... Dapat tawagin iyang capital tax...

    14.5K:higop:

  7. Join Date
    Oct 2002
    Posts
    36,807
    #7
    Typically buyer din nagbabayad ng CGT, lalo na pag direct buyer/seller

  8. Join Date
    Jul 2004
    Posts
    5,481
    #8
    Quote Originally Posted by _Qwerty_ View Post
    eh kasi mautak ang pinoy.. kung sa gains lang magbabayad.. eh di lahat nang bentahan palugi.. para walang CGT
    kung real property, it is either based on the zonal valuation or market/selling valuation whichever is higher

    now you know why most will sell, or at least make it appear in the deed of sale, that the selling price is based on the zonal valuation

    of course, the BIR can always dispute the valuation used in the deed of sale especially if it is very obvious that taxes are being evaded. kaya hindi mo rin puede i-benta palugi ito at mas lalong mahuhuli yan


  9. Join Date
    Jul 2004
    Posts
    5,481
    #9
    Quote Originally Posted by shadow View Post
    Typically buyer din nagbabayad ng CGT, lalo na pag direct buyer/seller
    buyer never pays the CGT as it is not his gain

    this is always for the sellers account

    but the parties can agreed to sell the property at a price that will cover the CGT para malinis ang makuha ng seller

    diskarte nalang yan sa selling price at kung defensible ito sa BIR

  10. Join Date
    Oct 2002
    Posts
    36,807
    #10
    Quote Originally Posted by 111prez

    buyer never pays the CGT as it is not his gain

    this is always for the sellers account

    but the parties can agreed to sell the property at a price that will cover the CGT para malinis ang makuha ng seller

    diskarte nalang yan sa selling price at kung defensible ito sa BIR
    Supposedly but based on experience typical pinoy seller doesnt want to have any cash out from the sale, basta pag nagbenta gusto wala ng lalabas na pera sa seller i.e. Taxes, notary, etc...

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Who will pay taxes in buying a lot inside subd.