Real Estate Taxes

Withholding Tax

Revenue regulations no. 6-85 updated June 27, 1994, known as expanded withholding tax to wit:

Real Property, other than capital asset, by an individual, estate trust, trust fund or pension fund or real property, whether held as capital or ordinary asset, by a corporation (a) not registered with the HLURB as engaged in Socialized Housing projects under RA 7279; (b) the seller/ transferor is habitually engaged in real estate and the selling price of the house and lot or lot only is:

Price of Lot or House & Lot

Not over P 500,00 /Withholding tax: 1.5%

Over P 500, 000 but not over P 2, 000, 000 /Withholding tax: 3.0%

Over P 2, 000, 000 /Withholding tax: 5.0%

Vendor not habitually engaged In real estate business /Withholding tax: 7.5%

When the vendor is registered with HLURB as engaged in socialized housing R.A. 7279, the withholding tax rate is 0%.