Trying to sell my old lot in Laguna and a broker mentioned capital gains tax and DST anyone know the actual rates or who pays them?
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Oct 22, 2025 1:06 pm
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Oct 25, 2025 3:14 pm
Capital Gains Tax (CGT) in the Philippines is 6% of the higher amount between the selling price, fair market value, or zonal value of the property. This tax applies if the property is classified as a capital asset, meaning it’s not part of the seller’s regular business inventory. The seller usually shoulders the CGT, and it must be paid within 30 days from the notarization of the Deed of Sale.
Documentary Stamp Tax (DST) is 1.5% of the same base value — the higher of the selling price, fair market value, or zonal value. This is often paid by the buyer, but it can be shared or adjusted depending on the agreement between both parties. DST must generally be paid within 30 days after the sale or within 5 days after the end of the month when the document was signed.
For example, if a property is sold for ₱10,000,000 (and that’s the highest value among the bases), the CGT would be ₱600,000 (6%) and the DST would be ₱150,000 (1.5%), totaling ₱750,000 in national taxes.
Keep in mind that these are national taxes. Local fees such as transfer tax and registration fees still apply, and rates vary per city or municipality. In Metro Manila, the local transfer tax is usually around 0.5% to 0.75% of the property’s value.
If the property is part of a business (like a developer’s inventory), the sale may be subject to VAT and other business taxes instead of the 6% CGT. Always verify the current BIR zonal values and local tax ordinances to ensure accurate computation before finalizing any sale.
