In the Philippine jurisdiction, the taxation of real property transfers is primarily governed by the National Internal Revenue Code (NIRC) of 1997, as amended by subsequent laws such as the TRAIN Law (Republic Act No. 10963). When dealing with agricultural land, the tax implications depend significantly on the classification of the asset and the nature of the seller.

1. Classification of the Property

Before determining the tax, one must distinguish whether the agricultural land is a Capital Asset or an Ordinary Asset.

Capital Asset: These are properties held by the taxpayer that are not used in trade or business. For most individual landowners who are not engaged in the real estate business, agricultural land is treated as a capital asset.
Ordinary Asset: These are properties held by real estate developers, or land used primarily in a registered business (e.g., a commercial plantation owned by a corporation). These are subject to Income Tax and Creditable Withholding Tax (CWT) rather than Capital Gains Tax.

2. The Capital Gains Tax (CGT) Rate

For individuals and domestic corporations selling agricultural land classified as a capital asset, a final tax of six percent (6%) is imposed on the gain presumed to have been realized on the sale, exchange, or disposition of real property.

The Tax Base

The 6% tax is not necessarily based on the actual profit. It is based on the Gross Selling Price or the Fair Market Value, whichever is higher. The Fair Market Value is determined by:

Zonal Value: As prescribed by the Commissioner of Internal Revenue; or
Assessed Value: As shown in the schedule of values of the Provincial and City Assessors.

3. Documentary Stamp Tax (DST)

In addition to CGT, the sale of agricultural land attracts a Documentary Stamp Tax. Under the TRAIN Law, the rate is 1.5% of the actual consideration (selling price) or the theoretical value (zonal/assessed), whichever is higher.

While the law generally holds the seller liable for the CGT and the buyer for the DST, these responsibilities are often subject to the private agreement (Deed of Absolute Sale) between the parties.

4. Exemptions and Special Cases

Comprehensive Agrarian Reform Program (CARP)

Agricultural lands covered by the Comprehensive Agrarian Reform Law (RA 6657) enjoy specific tax treatments. If the land is being transferred to the government through the Department of Agrarian Reform (DAR) for distribution to farmer-beneficiaries, the sale may be exempt from Capital Gains Tax under certain conditions to encourage agrarian reform.

Expropriation Proceedings

If the agricultural land is sold to the government under the exercise of eminent domain (expropriation) for public use, the individual seller has the option to:

Pay the 6% CGT; or
Be taxed under the relevant income tax rates for individuals, which may be beneficial if the seller is in a lower tax bracket.

5. Compliance and Deadlines

The Bureau of Internal Revenue (BIR) maintains strict timelines for the filing and payment of these taxes. Failure to comply results in surcharges (25% to 50%) and annual interest.

CGT (BIR Form 1706): Must be filed and paid within thirty (30) days from the date of notarization of the Deed of Absolute Sale.
DST (BIR Form 2000-OT): Must be filed and paid within five (5) days following the close of the month when the taxable document was signed/notarized.

6. Mandatory Requirements for Transfer

To process the Certificate Authorizing Registration (CAR)—the document required by the Register of Deeds to issue a new title—the following must typically be submitted to the BIR:

Original and photocopy of the Deed of Absolute Sale.
Certified True Copy of the Transfer Certificate of Title (TCT).
Certified True Copy of the latest Tax Declaration.
Sworn Declaration of No Improvement (if the land is strictly agricultural and vacant).
DAR Clearance (to prove the sale does not violate agrarian reform limits).
Proof of payment of CGT and DST (BIR payment confirmation).

7. Summary Table of Costs

Tax Type	Rate	Tax Base
Capital Gains Tax	6%	Highest of Selling Price, Zonal Value, or Assessed Value
Documentary Stamp Tax	1.5%	Highest of Selling Price, Zonal Value, or Assessed Value
Transfer Tax	0.5% - 0.75%	Paid to the Local Government Unit (Provincial/City Treasurer)
Registration Fees	Graduated	Based on the BIR Table of Fees (paid to Register of Deeds)