Who will pay taxes in buying a lot inside subd.

[zenon]

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!

[ChunkyLover]

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

[CVT]

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

14.4K:out:

[111prez]

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

[CVT]

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:

[_Qwerty_]

eh kasi mautak ang pinoy.. kung sa gains lang magbabayad.. eh di lahat nang bentahan palugi.. para walang CGT

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:

[shadow]

Typically buyer din nagbabayad ng CGT, lalo na pag direct buyer/seller

[111prez]

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

[shadow]

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...

[ChunkyLover]

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...

haha.. dumedepende nadin yan sa patigasan...
ang totoo kasi dyan most people who sell "needs the money"
and those who buy "needs the lot"

ang tanong nalang dyan who would throw in the towel and would accept paying....

[_Qwerty_]

kaya kalokohan yang zonal value.. bakit hindi nila ilagay yung totoong market value para mag reflect yung totoong value nang property..

biruin mo bibili ka nang lupa worth 5M.. tapos ang zonal value lang nasa 200T.. pag tinanong mo kung bakit ganon.. ang sasabihin sayo.. eh para po mababa lang bayaran nyong tax.. wtf.. bakit di nila i reflect na talagang 5M yung worth nung lupa..

[oliver1013]

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...

Kaya dapat alamin ng seller ang gusto niya i Neto, then from that value add the Taxes and any other expense as I have mentioned above. As for buyers when buying and haggling you must also consider all the add ons fron the price you are haggling. malaki laki rin yan.

[ab_initio]

The general rule is: the seller pays the capital gains tax, because:

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.

However, since CGT is in the nature of an indirect tax, the burden may be shifted to the buyer.

The tax shift is becoming to be more of the general rule rather than the exception because in most sale transactions involving real property, the buyer is always the party most interested, especially in the acquisition of a new Transfer Certificate of Title. Without paying the CGT, there is no way that a new TCT be issued. In the first place if there is no interested person that can match the offer of the seller, then there can be no sale transaction, unless of course the seller is in dire need of cash that he may even resort to pacto de retro sale.

One caveat in not declaring the true purchase price in the Deed of Sale. if it would turn out that the title is not clean or there are defects, like relatives may have a claim on the land, and the buyer wants the contract rescinded, how could the buyer go to court? Is he going to present the unnotarized deed reflecting the true purchase price he paid or the notarized deed which reflect the amount lower than what he paid for? Are you trying to tell the court that it is designed to evade payment of correct CGT? of course, not. The court will tell you: come to me with clean hands.