Deadline for Capital Gains Tax (CGT) and Documentary Stamp Tax (DST) on a Deed of Sale in the Philippines (comprehensive legal-practitioner overview, updated to 26 June 2025)
Snapshot of the critical dates
| Tax | Trigger date | Standard deadline (calendar-day count)* | Governing BIR form |
|---|---|---|---|
| Capital Gains Tax – real property (6 %) | Date the Deed of Absolute Sale is notarised | 30 days after the date of notarisation | BIR Form 1706 |
| Capital Gains Tax – unlisted domestic shares (15 % or 5 %/10 %) | Date of execution/endorsement of the stock transfer | 30 days after execution | BIR Form 1707-A (individuals) / 1707 (corporations) |
| Documentary Stamp Tax – conveyance of real property (₱15 per ₱1 000 of value) | Date the Deed is signed/accepted (practically the notarisation date) | On or before the 5th day following the end of the month in which the document was executed | BIR Form 2000-OT |
| Documentary Stamp Tax – sale/transfer of shares (₱1.50 per ₱200 par or FMV, whichever is higher) | Same as above | Same DST deadline | BIR Form 2000 (main) |
* Deadlines are statutory and unaffected by the separate, later steps of securing the electronic Certificate Authorising Registration (eCAR) or registering the title with the Registry of Deeds/LGU.
1. Statutory framework
| Statute / rule | Key provisions relevant to deadlines |
|---|---|
| National Internal Revenue Code (NIRC) of 1997, as amended | • § 24(C) & (D) – CGT on individuals (shares & real property) • § 27(D)(2) & (5) – CGT on domestic corporations • § 196 – DST on deeds of sale of real property • § 175 – DST on sale/transfer of shares • § 248-255 – Surcharge, interest (now 12 % p.a.), civil/criminal penalties |
| Revenue Regulations (RR) No. 7-2003 (consolidated under RR 6-2013) | Prescribes the 30-day filing and payment rules for CGT on real property |
| RR No. 9-2021 & RMC No. 24-2022 | Modern eCAR system; mandates electronic processing timelines |
| Local Government Code (LGC) § 135 | 2 % LGU transfer tax (payable within 60 days of deed) – often overlooked but separate from CGT/DST |
2. Capital Gains Tax (CGT)
2.1 Concept and scope
CGT is a final tax on presumed gain from a disposition of:
- Real property located in the Philippines and classified as a capital asset (i.e., not inventory or held for sale in the ordinary course of trade or business).
- Shares of stock in a domestic corporation not traded through the stock exchange.
Transfers by succession or donation are not CGT-able; they fall under estate or donor’s tax.
2.2 Tax base and rates
| Asset sold | Tax base | Rate |
|---|---|---|
| Real property | Higher of (a) gross selling price, or (b) zonal / fair market value per latest BIR schedule | 6 % |
| Unlisted domestic shares – individual seller | Net capital gain (selling price – cost) | Graduated: 5 % on first ₱100 000; 10 % on excess |
| Unlisted domestic shares – corporate seller | Net capital gain | 15 % |
Principal-residence rollover (Sec. 24(D)(2)) – an individual who sells his/her principal residence may apply for CGT exemption if the entire proceeds are fully invested in a new principal residence within 18 months and a sworn undertaking is filed with the CGT return. A provisional CGT return is still filed within 30 days, but payment is deferred.
2.3 Filing and payment deadline
Thirty (30) days after the date of notarisation/execution. No extensions are available administratively; only formal BIR requests for compromise / abatement may be entertained.
2.4 How to file
- Prepare BIR Form 1706 (real property) or 1707-A/1707 (shares).
- Attach notarised Deed of Sale, certified true copy of title/stock certificates, tax declaration, zonal valuation print-out, and valid IDs.
- File and pay electronically (eBIRForms + eFPS, GCash, LandBank Link.Biz, etc.) or over-the-counter at an AAB (authorised agent bank) of the RDO where the property is located (realty) or where seller is registered (shares).
- Secure tax payment confirmation (eFPS) or stamped Form to proceed to eCAR processing.
2.5 Penalties for late CGT filing
| Delay | Surcharge | Interest | Compromise* |
|---|---|---|---|
| Any late filing/payment | 25 % of basic tax | 12 % p.a. (rate adjusted by the BSP from July 2023) | ₱1 000 – ₱30 000 depending on basic tax |
* Fixed compromise amounts per BIR RMO 7-2015.
3. Documentary Stamp Tax (DST)
3.1 Nature
DST is a tax on documents, instruments, loan agreements, and papers evidencing the acceptance, assignment, sale, or transfer of an obligation, right, or property.
3.2 Applicable DST for a deed of sale
| Transaction | DST base | Rate |
|---|---|---|
| Conveyance of real property (Sec. 196) | Higher of (a) consideration or (b) FMV | ₱15 for every ₱1 000 (or fraction) |
| Conveyance of shares of stock (Sec. 175) | Par / FMV whichever is higher | ₱1.50 for every ₱200 (or fraction) |
3.3 Filing and payment deadline
DST is reported through BIR Form 2000-OT (one-time) or 2000 (for shares) and must be filed and paid on or before the 5th day following the end of the month in which the deed or document was made, signed, accepted, or transferred.
Illustration
- Deed notarised: 10 April 2025
- DST filing deadline: 5 May 2025
3.4 eDST system
Large taxpayers and those enrolled in eDST affix system-generated “purple stamps” instead of manual documentary stamps. RR Nos. 13-2005 & 11-2020 govern enrolment and crediting of eDST payment.
3.5 Penalties for late DST
Same surcharge/interest regime as CGT (25 % + 12 % p.a.) plus compromise fines (₱1 000 – ₱30 000).
4. Procedural flow for a standard real-property sale
- Draft & notarise Deed of Absolute Sale.
- Within 30 days: file CGT return (1706) and pay 6 % tax.
- Within statutory DST window: file Form 2000-OT and pay DST.
- Submit documents to the BIR – One-Time Transactions (ONETT) team to secure the electronic Certificate Authorising Registration (eCAR). Under RR 9-2021 the BIR must issue the eCAR within 5 working days of complete submission.
- Within 60 days of notarisation: pay 2 % local transfer tax at the City/Municipal Treasurer.
- Present eCAR, Original Tax Declaration, new Transfer Tax receipt, Deed of Sale to the Registry of Deeds for transfer of title (TCT/CCT).
- Update tax declaration at the Assessor’s Office.
5. CGT & DST on unlisted shares of stock
| Particular | Capital Gains Tax | Documentary Stamp Tax |
|---|---|---|
| Rate | 15 % (corporate seller) or 5 %/10 % graduated (individual) | ₱1.50 per ₱200 par/FMV |
| Base | Net gain (SP – cost) | Par or FMV, whichever higher |
| Form | 1707 (corp) / 1707-A (indiv) | 2000 |
| Deadline | 30 days from execution | DST: same monthly rule as realty |
Listed shares are instead subject to FDA (stock transaction tax) collected by the Philippine Stock Exchange/PCD & DST of ₱0.75/₱200 on the original issuance only.
6. Exemptions & special situations
| Exemption | CGT impact | DST impact | Key requirements |
|---|---|---|---|
| Sale to Government under expropriation | CGT-exempt (Sec. 24(D)(1)) | DST still due | Proof of government acquisition |
| Tax-free exchange under Sec. 40(C)(2) | CGT-deferred | DST exempt (Sec. 199(o)) if accorded by BIR ruling | Prior BIR confirmatory ruling |
| Sale of principal residence | CGT-exempt if 100 % proceeds reinvested within 18 mo. | DST still due | Sworn undertaking & escrow if partial reinvestment |
| Low-cost & socialised housing by NHMFC / Pag-IBIG | CGT & DST exempt per RA 7279 and RA 7835 | Appropriate endorsement from HUDCC/DHSUD |
7. Electronic filing, payment and eCAR best practices (2023-2025 roll-outs)
- eBIRForms v7.10 (released 2024) automatically validates zonal values for 1706 filings.
- Link.BizPortal 2.0 now accepts GCash, Maya, UnionBank, LandBank iAccess for CGT/DST.
- ONETT-TMC (Tax Mapping & Compliance) dashboard allows taxpayers to track eCAR status in real time.
- RMC 82-2024 reminds ONETT officers that eCAR delays beyond 5 working days constitute service lapse subject to administrative sanctions.
8. Penalties recap and voluntary disclosure
| Irregularity | Statutory addition | Practical note |
|---|---|---|
| Late filing/payment | 25 % surcharge + 12 % interest p.a. | Interest computed on a per-annum basis, fraction of a year prorated |
| Willful neglect/fraud | 50 % surcharge | Criminal prosecution possible under § 254 |
| Failure to stamp document (DST) | Same penalties; document inadmissible in court until stamped | Courts routinely dismiss ejectment/foreclosure cases if unstamped |
| Unregistered deed with Registry of Deeds | No BIR penalty, but title transfer barred; buyer exposed to sellers’ creditors | Prescriptive period for actions remains with name on title |
| Voluntary Assessment & Payment Program (VAPP) | Periodically reopened (latest: RR 21-2023 for TY 2022) | May allow compromise of up to 40 % of basic tax in lieu of audit |
9. Common pitfalls and how to avoid them
- Using the signing date instead of notarisation date – the BIR counts the latter for CGT.
- Paying CGT but forgetting DST – eCAR cannot be issued if any of the two is missing.
- Paying LGU transfer tax first – LGUs will not accept payment without BIR eCAR in many cities.
- Understating zonal value – high audit‐risk; BIR re-computes and surcharges both CGT and DST.
- Missing DST on intra-family deeds of sale – even “nominal” transfers at ₱1.00 still pay DST based on FMV unless treated as donation (which triggers donor’s tax).
10. Practical compliance timetable (real-property sale)
| Day | Action item |
|---|---|
| D-0 | Draft, review, and notarise Deed of Absolute Sale. |
| D + 1 – 25 | Gather docs, secure copies of TCT/CCT, tax declaration, latest real-property tax clearance. |
| D + 30 | Last day to file/pay CGT (Form 1706). |
| End of month containing D › 5th day of next month | Last day to file/pay DST (Form 2000-OT). |
| After CGT & DST paid | Submit ONETT packet; follow-up eCAR (target release in 5 working days). |
| Within 60 days of D | Pay LGU transfer tax and register with Registry of Deeds. |
11. Conclusion
Meeting the 30-day CGT deadline and the monthly DST deadline is crucial: both taxes must be fully settled before the Bureau of Internal Revenue will issue an eCAR, the indispensable passport for transferring the title or shares. Failure to heed the deadlines immediately adds a 25 % surcharge and steadily accruing 12 % annual interest, besides jeopardising the buyer’s ownership.
Taxpayers and counsel should diarise the dates from the very moment a deed is notarised. With the BIR’s 2023-2025 shift to end-to-end electronic filing and eCAR issuance, prompt compliance has become easier—yet penalties for delay remain steep and non-negotiable.
Disclaimer: This article is for general information only and does not constitute legal advice. Specific transactions should be reviewed in light of the latest BIR issuances and the parties’ particular circumstances.