Section 66 – This section provides that deeds of transfer of 0 – 500 = 21
ownership too agrarian reform beneficiaries, individual
land owners or by corporation, whether voluntary or + 500 = 30 compulsory are exempted from capital gains tax and other 1,680,000.00 - P1,700,000 = 8,796.00 applicable taxes or fees necessary for such conveyance. And for every P20,000,00. or fraction thereof; In excess of Capital Tax gains P1,700,000.00, 90 pesos Taxes that are imposed on earnings the seller has gained addition to the fee of 8,796.00 90.00 from the sale of capital assets. Section 68 Capital assets- Defined as those properties that are not used in trade or in business involving the sale of real Since they have primary and exclusive jurisdiction over properties. such cases the provision under Section 68 of CARL granting the Government Agencies Immunity from undue “The six percent (6%) CGT (capital gains tax) is based on interference in the implementation of the program, is the gross selling price or fair market value or zonal value of applicable. the subject property, whichever is higher,” the BIR said in a statement, referring to memorandum circular 35-2017 issued earlier.
“The foregoing implies that in order to be liable for the
payment of CGT, there must be presumed gain from the sale, exchange or disposition of real property. The mere issuance of tax declaration without any sale, exchange, or disposition is not subject to CGT. Likewise, there must be transfer of ownership that resulted from the sale, disposition or conveyance of the real property,” the BIR said.
It added that the payment of capital gains tax is a direct
consequence of the sale, meaning a mere issuance of tax declaration in the absence of any sale, exchange, or other forms of conveyance is not subject to the CGT.
Kinds of taxes and fees pertaining to the transfer of
ownership of land
The following are some examples of taxes which the land
owners are exempted from, for the purposes of this act.
Witholding taxes is a type of income tax which applies only
when the seller is a corporation
Documentary Stamp Tax - are excise tax levied upon
documents – for the purposes of transferring the ownership of lands it is commonly set to 1.5 percent of the selling price of the land, or the zonal value or fair market value
Section 67. Free Registration of Patents and Titles.
In accordance with the preceding provision Section