Publications


Tax Digest
Volume 10,
Series 60
Basis of Tax Imposition on the Sale, Exchange or Other Disposition of Real Property

Real property whether capital or ordinary asset when transferred to one person to another shall be subject to tax, with certain exceptions, which tax base are based from fair market value of either the CIR or Provincial and City Assessors, whichever is higher. The bureau recently released a circular reiterating the basis of the power of the commissioner in determining the tax base of the real properties to be transferred. The prevailing provision under the National Internal Revenue Code of 1997, as amended, is Section 6 (E), and was further regulated by Revenue Regulation Nos. 2-98 and 7-2003.

It was ordered to the BIR officials or employees that there will be no other basis for imposition of capital gains tax, income tax, or withholding tax except that was provided by the law.

Revenue Memorandum Circular No. 27-2017
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