Transfer Tax and Other Fees for Transferring a Condominium Certificate of Title in Quezon City (Philippines)
Everything you need to know, from tax rates and deadlines to documentary requirements, legal bases, and practical tips.
1. Legal Foundations
| Levy / Office | Governing Law / Rule | Core Provision |
|---|---|---|
| Transfer Tax (Local) | Local Government Code (RA 7160), § 135; Quezon City Revenue Code | Cities may levy up to 0.50 % of the higher of (a) consideration or (b) fair market value (FMV). QC’s ordinance adopts the max 0.50 % rate for all transfers, payable within 60 days of the notarised Deed. |
| Documentary Stamp Tax (DST) | National Internal Revenue Code (NIRC), § 196 | ₱15 for the first ₱1 000 of consideration/FMV + ₱15 for every additional ₱1 000 → 1.5 % in effect. Pay through BIR Form 2000-OT within 5 days after the month when the deed was signed (BIR allows concurrent filing with CGT). |
| Capital Gains Tax (CGT) (individual/corp. not habitually engaged in real-estate) | NIRC § 24(D) (individuals), § 27(D)(5) (domestic corps.) | 6 % of gross selling price or zonal/FMV—whichever is higher. File BIR Form 1706 and pay within 30 days of notarisation. |
| Creditable Withholding Tax (CWT) (if seller is engaged in business; replaces CGT) | NIRC § 57(B); RR 2-98 | Graduated 1 %–6 % schedule (most condo sales by developers taxed at 6 %). |
| Value-Added Tax (VAT) | NIRC § 106; RR 16-05 | 12 % VAT applies instead of CGT/CWT if the seller is VAT-registered and the unit is an “ordinary asset”. (Common for preselling/new units.) |
| Registration Fee | 2021 LRA Schedule of Fees | Payable to Register of Deeds (RD-QC); starts at ₱60 for first ₱20 000 + ₱90 per additional ₱100 000 (≈0.09 %); minimum ₱1 090 for condo transfers worth ≥₱3 M. |
| IT Fee & Misc. | LRA Memo Circulars | ₱330 per title issued, plus ₱30 certification fee per page. |
| Real-Property Tax (RPT) | RA 7160, §§ 197-220 | Must be fully paid for the current year before QC issues tax clearances needed for CAR & title transfer. |
2. Key Government Offices Involved
- Bureau of Internal Revenue (RDO 28 – East QC)
- Quezon City Treasurer’s Office (Transfer Tax Division)
- Quezon City Assessor’s Office (Tax Declaration update)
- Register of Deeds – Quezon City (LRA)
3. Documentary Requirements
(All copies must be legible, A4-short bond, with original & two photocopies unless noted.)
| For BIR eCAR | For Transfer Tax (QC) | For RD Title Transfer |
|---|---|---|
| • Notarised Deed of Absolute Sale (DAS) or Deed of Donation│• TIN of both parties│• Latest RPT receipt│• Tax Clearance (QC)│• Existing CCT (owner’s duplicate)│• BIR-issued eCAR│• Cert. of No Improvement (if applicable)│• Vicinity map / locator plan if zonal value disputed | • eCAR (original)│• DAS (certified true copy)│• RPT tax clearance│• Transfer Tax payment form (QC Treasury) | • Owner’s duplicate CCT│• DAS (notarised)│• eCAR & DST/CGT/CWT receipts│• QC Transfer-Tax receipt│• Condo Corp. Certificate (clearance for unpaid dues)│• Valid IDs & SPA if via representative |
Tip: Bring loose documentary stamps, three (3) passport-size pictures of buyer & seller (rarely required but some assessing clerks still ask), and at least two extra photocopies of every page.
4. Step-by-Step Process & Timeline
| Step | What Happens | Deadline / Turnaround |
|---|---|---|
| 1. Compute & Pay CGT/CWT and DST | File BIR 1706/1606 & 2000-OT, pay taxes at AAB or ePayment. | CGT/CWT: 30 days DST: 5 days after month-end |
| 2. Secure Electronic CAR | Submit docs to BIR RDO 28; wait for evaluation, signing, & release. | 5-15 working days (typ.) |
| 3. Pay QC Transfer Tax | Present eCAR, DAS, RPT clearance, etc. at QC Treasurer; pay 0.5 %. | Must be within 60 days of notarisation. Late: 25 % surcharge + 2 %/mo interest (max 72 %). |
| 4. Register with QC RD | Lodge complete packet, pay registration/IT fees; get claim stub. | 3-7 weeks (depends on RD backlog). |
| 5. Pick up new CCT & Annotation | New CCT in buyer’s name + annotated seller’s copy. | Same as step 4 release date. |
| 6. Transfer Tax Declaration (Assessor) | Present new CCT, eCAR, etc. QC Assessor issues updated TD. | 2-3 hours to 1 day. |
5. Computation Worksheet (Illustrative)
Condo unit sold for ₱6 500 000; BIR zonal value ₱6 800 000 → FMV = ₱6 800 000.
| Item | Basis | Rate / Schedule | Amount |
|---|---|---|---|
| CGT | ₱6 800 000 | 6 % | ₱408 000 |
| DST | ₱6 800 000 | 1.5 % | ₱102 000 |
| QC Transfer Tax | ₱6 800 000 | 0.5 % | ₱34 000 |
| Registration Fee (RD) | LRA Table | ~0.09 % | ₱6 120 |
| IT & Misc. Fees | Fixed | ₱330 + cert. pages | ₱450 (est.) |
| Notarial Fee | Market | 0.75 %–1 % | ₱50 000 (negotiated) |
| TOTAL GOV’T OUTLAY | ≈ ₱550 570 |
(Excludes VAT/CWT, condo-corp. dues clearance, broker’s commission.)
6. Deadlines & Penalties Recap
| Levy | Surcharge | Interest |
|---|---|---|
| CGT/CWT | 25 % of tax due | 12 % p.a. (1 %/mo) |
| DST | 25 % | 12 % p.a. |
| Transfer Tax (QC) | 25 % | 2 % per month (max 36 mos / 72 %) |
| Registration (RD) | 50 % filing surcharge if lodged > 1 yr late | NA |
7. Special Situations
| Scenario | Tax Treatment / Note |
|---|---|
| Inheritance (Extrajudicial Settlement) | Pay Estate Tax (6 % of net estate). No CGT/DST; there is DST on settlement agreement (₱15 per ₱1 000) and Transfer Tax. |
| Donation | Donor’s Tax (graduated 0 %–15 %) + DST (fixed ₱15) + Transfer Tax. |
| Installment Sale | CGT is still on full FMV upfront; DST may be pro-rated per RR 13-99. |
| VAT-able Sale | VAT (12 %) on selling price, plus DST 1.5 %, no CGT. |
| Foreclosure / Dacion en Pago | Creditable withholding tax or CGT depends on asset class; DST still payable. |
| Sale to Government | May avail of tax-free exchange under NIRC § 40(C)(2); otherwise regular CGT + DST. |
8. Practical Tips & Common Pitfalls
- Always check BIR Zonal Values before setting the selling price; the higher of zonal or actual price is the tax base.
- Pay RPT up-to-date; QC will refuse to issue clearance if even Q1‐Q3 of the current year are unpaid.
- Chronological order matters: eCAR → Transfer Tax → RD registration. Reversing them is impossible.
- Photocopy everything—the RD keeps originals of eCAR, DAS, and CCT.
- Use BIR-accredited payment channels (ePay, G-Cash, LandBank). Receipts must be image-clear for RD scanning.
- Name consistency: Middle initials, “Jr./Sr.”, and even minor typos trigger BIR “One-Time Transaction” holds.
- **If seller is a corporation, SEC-issued Board Resolution & Secretary’s Certificate are mandatory at BIR/RD.
- Condo Corp. Clearance (duly-signed statement of no arrears) speeds up RD processing—QC RD sometimes refuses to accept without it even though not in LRA checklist.
- Keep the Claim Stub—nobody else can release the new CCT without it. Lost stub = affidavit + ₱500.
- Plan for 6–8 weeks from notarisation to release of the new title if documents are complete and no tax deficiencies.
9. Frequently Asked Questions
| Q | A |
|---|---|
| Is the 0.5 % Transfer Tax negotiable? | No. QC imposes the statutory maximum. Some smaller municipalities charge 0.25 %. |
| Can I pay Transfer Tax before eCAR is released? | Quezon City requires the original eCAR to compute the tax base; premature payment risks recomputation & penalties. |
| What if seller is an OFW abroad? | Seller can execute a Special Power of Attorney (authenticated by PH Consulate) appointing an attorney-in-fact to sign the deed and tax forms. |
| Can the buyer shoulder CGT/DST? | Yes, tax allocation is contractual, but BIR always treats the liability as the seller’s (CGT) and transactional (DST). Parties must file nonetheless. |
10. Bottom Line
Transferring a condominium title in Quezon City involves four main taxes—CGT/CWT, DST, QC Transfer Tax, and RD Registration Fees—plus supporting costs. Missing the statutory 30-day (BIR) and 60-day (QC) windows leads to steep surcharges and interest, so timeline discipline and complete documentation are crucial. Always verify the latest QC ordinances and BIR revenue regulations before filing, as rates and procedures are periodically updated. When in doubt, engage a licensed real-estate lawyer or tax specialist to avoid costly delays.
Disclaimer: This article is for general informational purposes and is not legal advice. Tax laws and local ordinances change; consult the Quezon City Treasurer’s Office, BIR RDO 28, or legal counsel for the most current rules.