Below is a comprehensive discussion of the topic “Correct BIR Form for Real Property Taxes” in the Philippine context. It is important to clarify at the outset that “Real Property Tax” (sometimes called “amilyar”) is a local tax administered by cities or municipalities, not by the Bureau of Internal Revenue (BIR). Hence, there is actually no designated “BIR Form” to pay real property tax itself. Instead, what the BIR handles are the national taxes that arise from real property transactions (e.g., capital gains tax, withholding tax, documentary stamp tax, donor’s tax, estate tax).

Nevertheless, confusion sometimes arises because when people hear “taxes on real property,” they may think everything is handled by the BIR. In reality, local governments collect Real Property Tax, while the BIR collects and administers the national taxes related to real-property transfers. Below is everything you need to know, structured clearly:

1. Real Property Tax (RPT) vs. BIR-Administered Taxes

Real Property Tax (RPT)

A local tax imposed on the ownership of real property (e.g., land, building, improvements).
Assessed and collected by the Local Government Unit (LGU)—the city, municipal, or provincial government where the property is located.
Paid using forms or notices issued by the LGU’s Treasurer’s Office (not the BIR).

BIR-Administered Taxes on Real Property Transactions

Capital Gains Tax (CGT) if the property is a capital asset.
Creditable Withholding Tax if the property is classified as an ordinary asset.
Documentary Stamp Tax (DST) whenever there is a deed of sale, donation, or other instrument that transfers real property.
Donor’s Tax if the property is donated.
Estate Tax if the property is transferred by reason of death.

These national taxes use BIR forms. Each tax type has a separate form and a different process.

2. Why There Is No “BIR Form” for Real Property Tax (RPT)

Because real property tax is a local tax under the Local Government Code (Republic Act No. 7160), its administration belongs to local government offices. The BIR has no official form dedicated to collecting real property tax. Instead, property owners must secure and accomplish the Real Property Tax Declaration and Billing Statement (or similar official forms) from the local Treasurer’s Office annually or quarterly (depending on local ordinances).

Hence, if the question is: “Which BIR form do I use to pay my real property tax?” the answer is: none. You must go to your city or municipal hall (or provincial capitol) to pay real property tax, using LGU-provided forms.

3. Common BIR Forms Used for Taxes Related to Real Property Transactions

Even though there is no BIR form specifically for real property tax, the BIR does provide various forms that you must file whenever certain transactions involving real property arise. Knowing these forms is crucial for full compliance:

a. BIR Form No. 1706 (Capital Gains Tax Return)

Used when selling or transferring real property classified as a capital asset (commonly, personal real estate not held in the ordinary course of business).
Due within 30 days from the date of the sale or exchange of the property.
The capital gains tax rate is usually 6% of the property’s gross selling price or fair market value, whichever is higher.

b. BIR Form No. 1606 (Withholding Tax Remittance Return for Onerous Transfer of Real Property Other Than Capital Asset)

Used if the property is classified as an ordinary asset (e.g., real property of dealers in real estate, or used in trade or business).
The buyer (if a withholding agent) is required to withhold a certain percentage.
The filing and payment deadlines follow the specific withholding tax rules, often also within 30 days of the sale or transfer.

c. BIR Form No. 2000-OT (Documentary Stamp Tax Declaration/Return – One Time Transactions)

Used for the payment of documentary stamp tax on the transfer of real property.
Due on or before the 5th day of the month following the notarization of the Deed of Sale or other transfer document (if not filed under the one-time transaction system within 30 days from the sale, depending on the relevant BIR regulations).

d. BIR Form No. 1800 (Donor’s Tax Return)

Used if the real property is donated.
Must be filed within 30 days after the date the gift (donation) is made.
The applicable donor’s tax rates depend on whether the donee is a relative or a stranger, and on the amount of net gifts over the calendar year.

e. BIR Form No. 1801 (Estate Tax Return)

Used if the real property passes to heirs upon the owner’s death.
Filing deadline is generally within one (1) year from the date of death, subject to possible extensions.
The estate tax rate is now 6% on the net estate value above the allowable deductions.

4. Process Flow for a Typical Real Property Sale or Transfer

To understand how real property taxes (both local and national) come into play, consider the usual steps in a standard real property sale:

Execution/Notarization of the Deed of Sale
- Buyer and Seller sign a Deed of Sale before a notary public.
Payment of the National Taxes to the BIR
- If the property is a capital asset, seller files BIR Form 1706 (CGT) and pays 6% capital gains tax.
- Buyer (or Seller, if agreed) files BIR Form 2000-OT to pay documentary stamp tax.
- If the property is an ordinary asset, the buyer (as withholding agent) remits the withheld tax using BIR Form 1606, plus DST.
Issuance of Certificate Authorizing Registration (CAR) or eCAR
- Once taxes are paid, the BIR issues a CAR/eCAR, signifying the seller or donor or estate has settled all necessary national taxes for the property transfer.
Payment of Transfer Tax to the Local Government
- Buyer goes to the provincial or city Treasurer’s Office to pay the local Transfer Tax (commonly 0.5% to 0.75% of the property value, depending on the LGU’s rules). This is not a BIR tax.
Registration with the Registry of Deeds
- The buyer then presents the notarized deed, the CAR/eCAR, proof of payment of transfer tax, and other documents to the Registry of Deeds for issuance of a new Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT).
Update Real Property Tax Declaration
- Finally, the buyer goes to the local assessor’s office to update the tax declaration in their name. Real property taxes are assessed based on these updated records.

Throughout these steps, note that the standard “real property tax” (annual or quarterly amilyar) remains payable to the LGU, not to the BIR.

5. Key Legal References

Local Government Code of 1991 (R.A. No. 7160) – Governs the imposition of real property taxes by local government units, how they are assessed, and how they are collected.
National Internal Revenue Code (NIRC), as amended – Governs taxes administered by the BIR (capital gains tax, withholding tax, documentary stamp tax, donor’s tax, estate tax).
BIR Revenue Regulations and Issuances – Clarify deadlines, forms, filing requirements, and penalties for non-compliance with national taxes.

6. Frequently Asked Questions

1. Is there a BIR Form for Real Property Taxes (amilyar)?
No. Real property tax is a local tax, collected by your city/municipality. The BIR only has forms for national taxes on real property transactions (e.g., CGT, DST).

2. Which BIR Form should I use if I sold my house?
If you sold a capital asset (e.g., your personal home), you typically file BIR Form 1706 (Capital Gains Tax Return) and BIR Form 2000-OT (Documentary Stamp Tax), unless it’s an exempt transaction (e.g., under certain conditions in R.A. No. 10963’s TRAIN Law for a principal residence). Always verify the classification of your property and consult a tax professional.

3. Do I still have to pay local real property taxes (amilyar) if I’ve already paid the BIR capital gains tax and DST?
Yes. LGU real property taxes are different and must be paid separately to the local Treasurer’s Office, usually on an annual or quarterly basis.

4. How do I confirm the correct form for my situation?
Check the classification of the property (capital or ordinary asset), the nature of the transfer (sale, donation, inheritance), and refer to the relevant BIR Revenue Regulations. If still unsure, consult a tax attorney or a BIR representative.

5. What happens if I fail to pay the local real property tax?
Unpaid RPT can result in penalties, interest charges, or even the property being sold at public auction by the LGU for tax delinquency. This is enforced by local government regulations, independent of any BIR actions.

7. Practical Tips

Double-Check the Property Classification
- Identify whether the property is a capital asset or an ordinary asset. This determines whether you file BIR Form 1706 (CGT) or BIR Form 1606 (withholding tax).
Pay the LGU Transfer Taxes Promptly
- After settling national taxes at the BIR, do not forget to pay the local transfer tax at the city/municipal/provincial Treasurer’s Office.
Comply With Deadlines
- National tax returns (e.g., CGT, DST) must be filed and paid typically within 30 days from notarization of the deed.
Gather All Required Documents
- Notarized Deed of Sale, old Certificate of Title, tax declaration, proof of payment of RPT (to show no delinquencies), valid IDs, and other supporting documents.
Keep Official Receipts
- Safeguard both BIR payment receipts and LGU payment receipts for future reference or possible audits.

8. Conclusion

In summary, there is no specific BIR form for paying real property taxes (amilyar) because real property tax is a local imposition collected by local governments. What the Bureau of Internal Revenue does require, however, are specific national tax returns (capital gains tax, withholding tax, documentary stamp tax, donor’s tax, or estate tax) whenever real property is sold, donated, or transmitted. Each of these taxes uses a distinct BIR form, and failing to file and pay the corresponding tax on time can lead to penalties.

For compliance purposes:

Pay real property tax (RPT) to the local government using LGU-provided forms and procedures.
Use the correct BIR forms for national taxes on real property transactions (e.g., BIR Form 1706 for CGT, 1606 for withholding tax, 2000-OT for DST, etc.).

Being mindful of the distinction between local and national taxes—and filing the correct forms with the correct agency—will ensure that all legal requirements relating to real property ownership and transfer are properly satisfied in the Philippines.

Disclaimer

This write-up provides general legal and tax information and does not substitute for professional advice. Philippine tax rules can change over time, and local ordinances may vary from one LGU to another. Always verify the most recent BIR issuances, LGU regulations, and, if necessary, consult a tax lawyer or certified public accountant for personalized guidance.