Capital Gains Tax (Philippines): When Does the 30-Day Filing Deadline Start?

This explainer focuses on Philippine capital gains tax (CGT) filing timelines and the practical “start date” rules. It’s general information, not legal advice.

Quick answer

Real property (capital asset): The 30-day clock starts the day after the taxable transfer happens, which in ordinary sales is the date the deed is notarized (execution date).
Shares of stock not traded on the exchange: The 30-day clock starts the day after the sale/transfer date (the closing or transfer date in your documents/stock transfer book).

If the last day falls on a Saturday, Sunday, or legal holiday, the due date moves to the next business day.

Why 30 days? What return is due?

Real property (capital assets): Individuals (and estates/trusts) owe a final 6% CGT on the higher of the gross selling price (GSP) or the fair market value (FMV). You file BIR Form 1706 and pay within 30 days after each sale, exchange, or other transfer. This filing is typically a prerequisite to getting the eCAR (electronic Certificate Authorizing Registration) for title transfer.
Unlisted shares of stock (capital assets): Individuals and corporations pay CGT on the sale of shares not traded on the PSE by filing BIR Form 1707 within 30 days after each transaction. (Individuals also file a consolidated annual return for all such share sales for the calendar year.)

“Capital asset” here means property not used in business as inventory or held primarily for sale to customers, and not depreciable business property. Real property classified as ordinary asset follows a different regime (typically creditable withholding tax and income tax, not CGT).

What event starts the 30-day period?

Below are the most common scenarios and the event that starts counting Day 1 (always count from the day after the event):

1) Ordinary sale of real property (capital asset)

Trigger: Notarization of the Deed of Absolute Sale (or equivalent sale deed).
Why: Notarization fixes the date of execution and is the usual evidence of a completed transfer for tax purposes, even if title transfer at the Registry happens later.

2) Sale with suspensive conditions (e.g., “effective upon full payment” or upon issuance of a government clearance)

Trigger: Date the suspensive condition is fulfilled, because transfer is not complete until then.
Tip: Make the condition explicit in the deed. Keep documentary proof (e.g., final payment receipt, authority approval).

3) Sale with resolutory conditions (e.g., subject to future rescission)

Trigger: Date of notarization of the deed. A resolutory condition does not delay the initial transfer for tax purposes.

4) Installment sales of real property

Trigger: Date of notarization of the sale deed.
- Payment timing does not defer the 6% CGT—the BIR generally expects full CGT within 30 days based on the higher of GSP or FMV, regardless of when you collect installments.
- Exception to watch for: If the sale is genuinely subject to a suspensive condition (e.g., ownership transfers only after a specified milestone), the trigger may shift to the condition-fulfillment date (see #2).

5) Contract to sell / pre-selling

If the document is merely a contract to sell (ownership passes only upon a later deed), and no transfer is yet effected, the 30-day period generally hasn’t started.
The clock usually starts at the Deed of Absolute Sale or the date the suspensive condition is met.

6) Dación en pago (property given in payment of debt)

Trigger: Notarization of the Deed of Dación en Pago (this is a transfer for value).

7) Exchange / swap (property for property or for shares)

Trigger: Notarization of the Deed of Exchange.
Note: Certain tax-free exchanges (e.g., qualifying Section 40(C)(2) transfers to a corporation solely for shares with the required control immediately after) may be non-recognition events; if a true tax-free exchange applies, CGT does not arise at transfer.

8) Foreclosure of real property (capital asset)

Judicial/extra-judicial foreclosure: Practical rule of thumb—CGT typically attaches upon consolidation of ownership in the buyer (e.g., when the redemption period lapses and title consolidates), not on the auction date when the mortgagor still has the right to redeem.
If redeemed: No transfer is consummated; CGT typically does not apply. Keep the redemption documentation.

9) Pacto de retro (sale with right to repurchase)

If repurchased within the agreed period: Treated as no final transfer to the buyer; CGT generally not final.
If not repurchased and ownership consolidates: The 30-day clock for the buyer’s acquisition typically runs upon consolidation.

10) Expropriation / government acquisition

Trigger: The date the expropriation judgment or deed effectively vests ownership/compensation (case-by-case). CGT may still apply if a capital asset is transferred for value; document the vesting date carefully.

11) Unlisted shares of stock

Trigger: The sale/transfer date in your issuance/transfer documents (e.g., stock purchase agreement closing date, endorsement date, or date recorded in the corporate stock and transfer book).
Brokered vs. direct: For PSE-traded shares, CGT does not apply (stock transaction tax applies instead). For non-PSE trades, CGT with Form 1707 applies.

Counting the 30 days: practical rules

Day 1 is the day after the triggering event (e.g., notarization date).
If Day 30 is a weekend or legal holiday, file next business day.
File and pay at the RDO/LT office where the property is located (real property) or where the taxpayer is registered (shares), following the current BIR eFPS/eBIR guidelines that apply to you.
One sale = one 30-day deadline. Each deed/transaction has its own clock.

Documents the BIR typically looks for (real property)

BIR Form 1706 (signed)
Notarized deed (sale/dación/exchange/foreclosure documents, etc.)
Tax Identification Numbers (TINs) of seller and buyer
Title (TCT/OCT/CCT) and Tax Declarations (land & improvements)
Proof of FMV (zonal value printout and/or assessor’s schedule)
Real property tax (RPT) clearance / latest receipts
IDs, SPA/board resolution (if represented), corporate docs (if applicable)
Payment proofs (for CGT and Documentary Stamp Tax)
Other clearances if applicable (e.g., DAR for agricultural land)

After payment and validation, the BIR issues the eCAR for transfer at the Registry of Deeds. LGU Transfer Tax and DST are separate from CGT and have their own timelines (DST is generally due on or before the 5th day following the month of the taxable document).

Penalties for late filing

Surcharge: 25% of the tax due (50% in cases of willful neglect or false return)
Interest: Statutory interest per annum on unpaid amounts until fully paid
Compromise penalties: Per BIR schedules (administrative)

Penalties can compound quickly. If you’re close to Day 30 and documents are incomplete, file and pay based on the best available tax base (higher of GSP or FMV) to stop the clock, then supplement the file as instructed by the RDO.

Edge cases and how the 30-day rule applies

Earnest money / option money: Paying a deposit does not start the 30 days by itself. The deed (or fulfillment of a suspensive condition) does.
Rescission/voiding the sale after paying CGT: You may seek tax credit/refund subject to the strict rules and two-year prescriptive period (counted from payment). Keep rescission judgments/settlements and return of consideration proofs.
Partial transfers (e.g., undivided shares among heirs): Each deed triggers its own 30-day clock for the portion sold.
Estate settlements: Estate tax is different from CGT. Heirs selling inherited real property after estate settlement will trigger CGT (30-day rule) on their sale.
Related-party or below-market sales: CGT still uses the higher of GSP or FMV; low stated prices do not reduce the tax.
Hybrid forms (e.g., deed labeled “contract to sell” but notarized as a final sale): The substance controls. If the instrument and facts show a completed transfer, Day 1 runs from execution.

Checklist: deciding your Day 1

What is the asset?
- Real property (capital asset) → Form 1706
- Unlisted shares → Form 1707
What instrument consummates the transfer?
- Deed of sale / dación / exchange / consolidation document, etc.
- For shares: closing/endorsement date and stock & transfer book entry.
Is there a true suspensive condition?
- If yes → Day 1 is the day after condition is met.
- If no (ordinary/ resolutory) → Day 1 is the day after notarization.
Mark the deadline:
- Count 30 days; shift to next business day if it lands on a holiday/weekend.
Prepare the file:
- Identify FMV (zonal/assessor) and compare with GSP.
- Gather title/tax decs, IDs, RPT proof, deed, clearances.
- Pay CGT, then DST, then secure eCAR.

Frequently asked questions

Q: Our deed is dated earlier, but notarized a week later. Which date starts the clock? A: Notarization date is generally controlling for executed deeds, since it evidences the formal execution.

Q: Title hasn’t transferred yet—do we still file within 30 days? A: Yes. CGT is tied to the transfer event, not to the Registry’s processing.

Q: We’re selling on installments—can we pay CGT gradually? A: As a rule, no; the BIR expects full 6% within 30 days based on the higher of GSP or FMV. Only a genuine suspensive condition (ownership passes later) can shift the start date.

Q: We auction-foreclosed a property. When does the 30 days start? A: Generally when ownership consolidates (after redemption lapses) rather than the auction date.

Q: For unlisted shares, do we look at the contract date or delivery/endorsement date? A: Use the actual transfer date supported by your documents and stock & transfer book—that is the transaction date for the 30-day clock.

Practical tips

Date-stamp everything. Keep certified copies of notarized instruments and proof of when conditions were satisfied.
Screen the asset classification. If the seller is engaged in real estate business, the property might be an ordinary asset (no CGT; different taxes and deadlines).
Check FMV early. Zonal values and assessor’s values can push the tax base above the selling price.
Mind other taxes. DST and local transfer tax have separate filing/payment timelines.
When in doubt: file based on the conservative trigger (usually the deed date) to avoid 25% surcharge and interest; you can adjust later if warranted.

Bottom line

The 30-day filing deadline generally starts the day after the transfer is consummated—for real property, the deed’s notarization date; for unlisted shares, the documented transfer/closing date—unless a genuine suspensive condition delays the effectivity of the transfer. Align your paperwork to make the transfer date unambiguous, and file within 30 days to protect against penalties and delays in getting your eCAR (for real property) or completing share transfers.