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Moderate taxes for foreigners
engaged in trade or business


Rental Income: Nonresident foreigners who are engaged in trade or business are taxed at progressive rates (5% to 32%) on their net income. Rents above PHP10,000 (US$231) per month are also liable to VAT at 12% of gross rent.

Capital Gains: Capital gains realized by nonresident foreigners considered to be engaged in trade or business for tax purposes are taxed at the standard progressive income tax rates (5% to 32%). Taxable gains are the difference between selling price and acquisition cost of the property.

Inheritance: Non-resident foreigners pay estate tax only on property located in the Philippines at rates from 5% to 20%.

Residents: Resident citizens are taxed on their worldwide income at progressive rates, from 5% to 32%. Resident foreigners and nonresident citizens are taxed on Philippine-sourced income at progressive rates.

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Comments

#1 PORTER SMITH | April 03, 2010

In 2006 my wife and I purchased one house and lot for 1,200,000 and another house and lot for 610,000. These properties are both located in the Eastwood Greenview Project in Montalban, Rodrigues, Rizal. We have not received any property tax bills and have no idea if we owe taxes or if the tax is included in the monthly subdivision dues we pay each month. How do we find out or who do we contact to determine our tax situation?

#2 RYAN | May 09, 2010

We got a house and lot at a subdivision in cavite. we are still on our 12 month paying the equity when we are advised to pay for real property tax already. Is it legal for the real estate owner/developer to collect real property tax charges when the lot has not been transferred to our name yet.
The real estate/developer is collecting the real property tax.
please advise if this is valid.

#3 PAT | June 13, 2010

Similiar to question asked by Porter Smith (#3). Where do the answers to questions get posted? My wife and I also purchased a house in San Jose, Rodriguez, Rizal and have not received any tax bills and do not know where, how or who to contact to find out if taxes are due and who to pay them to.

#4 JASMIN B. CANUEL | June 28, 2010

"Property owners are required to file a sworn statement declaring the true (current and fair market value) of their property once every three years. The filing period is from 01 January to 30 June annually."

Where will I file ?? who will help me assess my current and fair market value?

#5 THERESE | July 08, 2010

@porter smith and pat- once you have the title to the property you should present this to to the local(municipal or city)assessor and he/she will issue a tax declaration in your name which makes you liable to the annual real property tax. very few local govts. send tax bills so you have to go to the assessor to get your tax assessments which you will present to the municipal treasurer to pay for the tax.

#6 MARGIE | July 18, 2010

I have a certified copy of a Title that my sister sold the land in K-1st Kamuning for 2.6 on 5/28/2008. How do I get a copy of the settlement costs? The contract to sell indicated that she was receiving payments in installment basis from 12/2007 to May, 2009. FYI, our parents died yet my younger sister sold the land without a waiver from 9 other surviving children. My mother has a pending probate case finalizing on 8/5/2010. She did not include the sale of the land on the final accounting of the probate. Also, she stated that she paid $4925 for property tax. how do I get a copy of the payment on property tax?

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