TYPE OF TAX

1) TAX ON TRANSFER OF
REAL PROPERTY OWNERSHIP .THE POWER SCOPE OF The province may impose a tax on the sale, donation, barter, or on any other mode of transferring ownership or title of real property. In LTT, what is subject to tax is actually the transfer, regardless of who the owner is. Its a privilege of transferring the RP ownership to another person.

RATES Not more than 50% of the 1% of the total consideration or of the TO TAX: PROVINCE fair market value, whichever is higher When to pay? 1) within 60 days from the: date of the execution of the deed or date of the decedent's death.

EXCEPTION Sale, transfer or other disposition of real property pursuant to R.A. No. 6657 (CARL).

OTHER NOTES Who is liable to pay? seller, donor, transferor or

Real Property Tax is not the same as Local Transfer Tax - RPT is a property tax directed on the property itself - LTT is an excise tax. Its a tax on the privilege of transferring RP ownership

2)

PUBLIC AUCTION SALE: from the date of the execution of the final deed of sale

Capital Gains Tax can be imposed together with LTT because of the different taxing authorities. - CGT is based on the 6% gross selling price or FMV, whichever is higher. - LTT is based on of 1% of the consideration or FMV whichever is higher. 3 Persons Instrumental in the Collection of LTT: 1) RD 2) Local Treasurer 3) Notary Public (he should inform the local treasurer within 30 days from notarization in order to put into record that theres a collectible in favor of the government)

3)

ORDINA RY SALE: automatically within 60 days from the deed of sale or notarization

2) TAX ON BUSINESS OF Not exceeding 50% of 1%

PRINTING AND PUBLICATION. The province may impose a tax on the business of persons engaged in the printing and/or publication of books, cards, posters, leaflets, handbills, certificates, receipts, pamphlets, and others of similar nature. Its the tax imposed on printing and publishing books, NOT on the business of selling printed books and published books. TYPE OF TAX 3) FRANCHISE Notwithstanding RATES Not exceeding 50% of 1% of the gross annual

of the gross annual receipts for the preceding calendar year.

BUSINESS, the tax shall not exceed 1/20 of 1% of the capital investment. you can only avail of this once and that is only in the year that you incorporated your business

NEWLY STARTED

The computation of the rate is based on the previous years operation. NO OPERATION (previous year), NO TAX

SCHOOL TEXTS OR
REFERENCES, PRESCRIBED BY THE DECS shall be exempt from the tax.

TAX. any

EXCEPTION Newly started business, the tax shall not exceed 1/20 of

OTHER NOTES

What are covered are those