Capital Gains Tax Calculator

CGT is a final 6% tax on the presumed gain from selling real property in the Philippines held as a capital asset (NIRC Sec 24(D)(1)). It is computed on the highest of the gross selling price, the BIR zonal value and the assessor's market value (Sec 6(E)), not on your actual profit. File BIR Form 1706 and pay within 30 days after the sale (Sec 51(C)(2)(b)).

The seller: an individual, estate or trust selling real property held as a capital asset (NIRC Sec 24(D)(1)). Residents and non-residents both pay it on Philippine property. Domestic corporations pay 6% on land and buildings held as capital assets (Sec 27(D)(5)). Property held as an ordinary asset, such as a developer's inventory, is taxed under the regular income tax instead.

For CGT the fair market value is the higher of the BIR zonal value and the value in the provincial or city assessor's schedule of market values (NIRC Sec 6(E)). Under RA 12001, the BIR keeps using zonal values, existing schedules or the documented price, whichever is higher, until updated schedules are adopted (RA 12001 Sec 29). Get the zonal value from the BIR and the assessor's value from your tax declaration.

The BIR uses the higher figure. If you sell for ₱3,000,000 but the zonal value is ₱3,500,000, CGT is 6% × ₱3,500,000 = ₱210,000 (NIRC Sec 24(D)(1) and Sec 6(E)).

File BIR Form 1706 within 30 days following the sale (NIRC Sec 51(C)(2)(b)) and pay when you file (Sec 56(A)(3)). Late payment adds a 25% surcharge and 12% a year interest, or 10% and 6% for micro and small taxpayers (Secs 248 and 249, as amended).

No. The 6% applies to the gross selling price or fair market value, whichever is higher (NIRC Sec 24(D)(1)). Broker commissions and other selling costs are not deducted. Selling expenses reduce the base only for shares not traded on an exchange, where the 15% applies to net gain.

Yes. Under NIRC §24(D)(2), the sale of your principal residence can be exempt from the 6% CGT if you meet all of these conditions, none of which is a minimum ownership period. (1) You fully use the proceeds to acquire or construct a new principal residence within 18 calendar months from the sale. (2) You avail of this exemption only once every 10 years. (3) You notify the BIR Commissioner of your intent to avail within 30 days of the sale. (4) The 6% CGT is meanwhile deposited in escrow with an authorized agent bank and released only on proof that the proceeds were utilized. If you use only part of the proceeds, the unutilized portion is taxed proportionately. Basis - NIRC §24(D)(2); RR 13-99 as amended by RR 14-2000.

BIR Form 1706, the notarized deed of sale, and proof of the values used for the tax base: the BIR zonal value and the tax declarations of the land and building. File and pay within 30 days after the sale.

You owe a 25% surcharge and interest of 12% a year on the unpaid tax; micro and small taxpayers pay 10% and 6% (NIRC Secs 248 and 249, as amended). The Register of Deeds also will not register the transfer until the BIR certifies that the tax was paid (Sec 58(E)).

No. It applies to real property held as a capital asset. Ordinary assets (inventory or property used in business) go into regular income tax. A principal residence sale can be exempt under NIRC Sec 24(D)(2). Donations and inheritance are not sales; they pay donor's tax or estate tax.

Yes. Calculate CGT separately for each property sold, using the higher of the selling price and FMV for each. Sum the individual CGT amounts to determine your total tax liability for the year.

No. The deed pays documentary stamp tax of ₱15 per ₱1,000 of the higher of price or market value (NIRC Sec 196), and the seller pays the local transfer tax of up to 0.5%, or 0.75% in a city, within 60 days (RA 7160 Secs 135 and 151). Note that the 6% CGT applies only when the property is a capital asset, and there is no holding-period rule. For an ordinary asset, the gain is taxed at regular income tax rates with creditable withholding, and VAT may apply (NIRC Sec 24(D)(1) and Sec 39).