Tax Payment Deadlines After a Property Sale in the Philippines – A Complete Legal Guide (2025 Edition)
Scope. This article explains all major Philippine tax obligations triggered by the sale or transfer of real property, focusing on when each tax must be paid, to which government office, and the consequences of missing a deadline. Citations refer to the National Internal Revenue Code (NIRC, as last amended by the TRAIN Law) and the Local Government Code (LGC). Note. Rules are current to July 29 2025. Always confirm with the BIR or local treasurer because issuances change frequently.
1. Snapshot of Taxes & Deadlines
| Tax | Who Pays | Statutory Deadline |
|---|---|---|
| Capital Gains Tax (CGT) – 6 % | Seller of capital assets | Within 30 days from the date of notarized Deed of Sale (NIRC §24 (D); BIR Form 1706) |
| Creditable/Expanded Withholding Tax (CWT/EWT) on ordinary assets | Buyer–withholding agent | On or before the 10th day of the month following the month of payment (15th for eFPS filers) (NIRC §57; Form 1606) |
| Value‑Added Tax (VAT) – 12 % (if applicable) | VAT‑registered seller of ordinary assets | Monthly VAT: 20th day of following month (Form 2550M); Quarterly VAT: 25th day after quarter (Form 2550Q) |
| Documentary Stamp Tax (DST) – 1.5 % | Usually the buyer (may be shifted by contract) | On or before the 5th day after the close of the month in which the Deed was signed (NIRC §200; Form 2000/2000‑OT) |
| Local Transfer Tax (LTT) – ≤ 0.5 % provinces / ≤ 0.75 % cities | Buyer or seller, per contract | Within 60 days from execution of Deed (LGC §135) |
| Real Property Tax (RPT) arrears | Normally seller clears; buyer liable going forward | Annual RPT is due Jan 1 but may be paid quarterly (Mar 31/Jun 30/Sep 30/Dec 31) (LGC §232) |
The Certificate Authorizing Registration (CAR) will not be released by the BIR until CGT and DST (or CWT/VAT, where applicable) are fully paid.
2. National Taxes Administered by the BIR
2.1 Capital Gains Tax (CGT) – 6 %
| Item | Details |
|---|---|
| When imposed | Sale, barter, exchange, or other disposition of real property located in the Philippines classified as a “capital asset.” |
| Tax base | Higher of (a) gross selling price, or (b) fair market value (FMV) per BIR zonal value or provincial/city assessor. |
| Deadline | 30 days from date of notarization or date of actual transfer, whichever is earlier. Pay via BIR Form 1706 at any Authorized Agent Bank (AAB) or e‑pay facility. |
| Installment sales | CGT is due 30 days after each installment in proportion to the amount actually received (RR 13‑99). |
| Penalties for late payment | 25 % surcharge (50 % if wilful neglect/fraud) + 12 % annual interest on unpaid tax + compromise penalty. |
2.2 Ordinary‑Asset Sales: Creditable Withholding & VAT
If the real property is held for sale in the ordinary course of trade or business, it is an ordinary asset; the seller recognizes ordinary business income, not CGT.
a) Creditable / Expanded Withholding Tax (CWT/EWT)
Rates: 1.5 % (individual seller) or 1.0 % (corporate seller) of gross selling price/FMV (RR 11‑2018).
Who files: The buyer (as withholding agent).
Deadline:
- Manual filers: 10th day of the month following the month of payment.
- eFPS filers: 15th day of the following month.
- Annual information return (Form 1606‑S): March 1 (of the year following the sale).
b) Value‑Added Tax (VAT)
When applicable: Seller is VAT‑registered and property is an ordinary asset and gross selling price exceeds ₱3.0 million (VAT threshold) or seller did not opt out under Sec. 109(2).
Rate: 12 % of gross selling price/ FMV.
Deadlines:
- **Form 2550M (monthly)—**20th day of the succeeding month for manual; 21st–25th for eFPS (depending on group).
- **Form 2550Q (quarterly)—**25th day after the close of each quarter.
2.3 Documentary Stamp Tax (DST) – 1.5 %
- Tax base: Same “higher of selling price or FMV.”
- Form: BIR Form 2000 (single transaction) or 2000‑OT.
- Deadline: On or before the 5th day after the close of the month when the deed/instrument was signed or accepted. (Example: Deed notarized 15 April → DST due 5 May.)
Tip. Pay CGT and DST together; most RDOs examine both computations before issuing the CAR.
3. Local Taxes & Fees
3.1 Local Transfer Tax (LTT)
Authority: LGC §135.
Rate caps:
- Provinces: ≤ 0.5 % of selling price/FMV, whichever is higher.
- Cities & Metro Manila: ≤ 0.75 %.
Deadline: Within 60 days of deed execution; paid to the Office of the Provincial/City Treasurer where the property is located.
Requirement for registration: Registry of Deeds will not annotate the transfer unless the Treasurer issues an LTT payment receipt.
3.2 Real Property Tax (RPT) Clearance
- The seller must present an RPT Tax Clearance (all dues paid up to the quarter of sale).
- Deadlines: Annual RPT is due January 1; discounts are granted for advance payment. Quarterly installments are due last day of each quarter.
4. Procedural Timeline — Typical Metro‑Manila Sale of a Residential Lot
- Day 0 – Notarization of Deed of Absolute Sale (DOAS).
- Within 30 days: Seller pays CGT and files Form 1706; Buyer pays DST using Form 2000.
- Same visit: Submit documentary requirements to the BIR; secure CAR (+ tax clearance).
- Within 60 days: Pay LTT at City Treasurer.
- After CAR & LTT receipts issued (≈ 2–6 weeks): Register deed + CAR with the Registry of Deeds; secure new Transfer Certificate of Title (TCT).
- Immediately after transfer: Update tax declaration at Assessor’s Office; future RPT bills go to the new owner.
5. Penalties & Legal Consequences
| Lapse | Financial Penalties | Practical Effect |
|---|---|---|
| Late CGT/DST | 25 %–50 % surcharge + 12 % p.a. interest | BIR will not issue CAR; title cannot be transferred. |
| Late LTT | Surcharge/interest per local tax ordinance | Registry of Deeds will refuse registration without LTT receipt. |
| Unpaid CWT/VAT | Same national penalties; BIR audit risk | VAT‑registered seller may lose input‑tax credits; buyer may be solidarily liable. |
| Unpaid RPT | 2 % interest per month up to 36 months + auction risk | Local government may levy and auction the property after 1 year of delinquency. |
6. Special Situations & Frequently‑Asked Questions
- Installment Sales: Pay CGT proportionately within 30 days of each installment (RR 13‑99).
- Sale to Government: Seller may opt for either 6 % CGT on FMV or graduated income‑tax rates on net gain (NIRC §24(D)(1)).
- Expropriation / Involuntary Sale: Same deadlines; “date of taking” for expropriation is treated as date of sale.
- Tax‑Free Exchanges (Sec. 40(C)(2)): No CGT; instead, submit Sworn Tax‑Free Exchange Certificate within the 30‑day window.
- Donations or Estate Transfers: Donor’s Tax (due within 30 days) or Estate Tax (due within 1 year), not CGT/DST.
- Foreclosure Sales: CGT based on bid price, still due 30 days from auction date; DST based on bid price/FMV.
- CAR Validity: A CAR does not expire, but most RDOs re‑validate if registration is delayed beyond 1 year.
7. Compliance Checklist (Seller & Buyer)
- Compute tax bases (use BIR zonal values + assessor’s FMV).
- Prepare BIR forms (1706, 2000, 1606/2550 if applicable).
- Pay within statutory deadlines (CGT 30 days, DST monthly‑5th, CWT/VAT 10th–25th, LTT 60 days).
- File documentary bundle for CAR (certified TCT, tax clearances, IDs, receipts).
- Monitor CAR release; immediately proceed to Registry of Deeds.
- Update tax declaration & RPT records.
8. Practical Tips
- File early. RDOs impose cut‑off times long before the statutory deadline for CGT/DST.
- Use e‑Payment channels (LANDBANK Link.Biz, GCASH, Maya) to avoid queues; attach e‑receipts.
- Keep certified copies of receipts and CAR—lost originals cause costly revalidation.
- Penalties compound quickly. A 12 % interest is computed daily; a 3‑month delay adds ≈ 3 % to the basic tax plus surcharge.
- Check both zonal value and assessor’s FMV; undervaluation is a common audit trigger.
9. Conclusion
Meeting tax deadlines after a Philippine property sale is crucial for a legally effective transfer. The seller (or the buyer in ordinary‑asset deals) must settle national taxes first—CGT or CWT/VAT and DST—then the local transfer tax, all within strict, short time frames. Failure to do so stalls title registration and exposes both parties to surcharges, interest, and even public auction for unpaid local taxes. Careful calendaring, prompt payment, and attentive documentary preparation ensure a smooth conveyance and peace of mind.
This article is for general information only and is not a substitute for personalized legal or tax advice.