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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