Taxation is the lifeblood of the country; hence, taxes may be collected in a sovereign country even in

the absence of law conferring the authority. It is money for the government that must be used not for
their own benefit or to conceal it, but to produce employment, security, and meet the fundamental
requirements of their people. As a result, owning a home in the Philippines is a luxury as well as a
duty. It is a privilege because you have the ability to offer safety and security for yourself and your
family members. At the same time, it is a responsibility because you are obligated by the government
to pay taxes on your real estate here in the Philippines. Meanwhile, Bria Homes had been envisioning
to provide the Filipino people affordable house and lot. Check our website to know more.

Taxation is one of the major topics that should have been taught in schools. It is one of the most
difficult things for an adult to perform since no one teaches us how to do it, and we shun specialists
like accountants because we consider their services to be expensive. Now, to assist you with your tax
requirements, here are some facts regarding real estate taxes to help you comprehend this subject. As
a disclaimer, we are not tax specialists, thus this post is intended to provide general conceptual
assistance only. This essay is not intended to be an alternative tax opinion. It is nevertheless
recommended that you speak with tax professionals such as Certified Public Accountants, who
deliberately studied such matter.

Definition and Scope of Real Property in the Philippines

Now, how can you know if your personal property in the Philippines is considered “Real Property”?
The Philippine legislation specifies which properties are to be regarded “Real.” According to Civil
Code Article 415, the following are to be considered as “Real Property.”

Land, buildings, roads and constructions of all kinds adhered to the soil;
Trees, plants, and growing fruits, while they are attached to the land or form an integral part of an
immovable;

Everything attached to an immovable in a fixed manner, in such a way that it cannot be separated
therefrom without breaking the material or deterioration of the object;

Statues, reliefs, paintings or other objects for use or ornamentation, placed in buildings or on lands by
the owner of the immovable in such a manner that it reveals the intention to attach them permanently
to the tenements;

Machinery, receptacles, instruments or implements intended by the owner of the tenement for an
industry or works which may be carried on in a building or on a piece of land, and which tend
directly to meet the needs of the said industry or works;

Animal houses, pigeon-houses, beehives, fish ponds or breeding places of similar nature, in case their
owner has placed them or preserves them with the intention to have them permanently attached to the
land, and forming a permanent part of it; the animals in these places are included;

Fertilizer actually used on a piece of land;

Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and waters either
running or stagnant;

Docks and structures which, though floating, are intended by their nature and object to remain at a
fixed place on a river, lake, or coast;

Contracts for public works, and servitudes and other real rights over immovable property.

In addition, the Supreme Court ruled in the case of Benguet Corporation vs Central Board of
Assessment Appeals, 218 SCRA 271 that ‘real properties’ could also be under general principles
personal properties.

What is Real Property Taxes or “Amilyar” in the

Philippines?
Have your parents ever mentioned the word “Amilyar” to you? or have you ever been faced with
paying anything called “Amilyar” at your local municipal hall? Well, “Amilyar” is a Filipino term
used for Real Property Taxes here in the Philippines. It is a colloquial term for the Filipino phrase
“millaramiento,” which is derived from the Spanish word “amillaramiento.”

Republic Act No. 7160, generally known as the Local Government Code of the Philippines, Chapter
IV, Section 232 bestowed power upon a province, city, or municipality within Metropolitan Manila
to collect an annual ad valorem tax on the real properties of its population. Its purpose is to be able to
cater local government unit expenses for public use.

After understanding what Real Properties are, it is essential to understand that such properties are
subject to taxes. As a result, it is a person’s responsibility to pay such taxes; otherwise, penalties and
criminal consequences may be imposed upon the taxpayer.

Are There Types of Properties Exempted from Real Estate

Taxes?
Yes. Under Chapter IV Section 234 of Republic Act 7160 provides in its provision that the following
are properties shall be exempted from payment of the real property tax:

Real property owned by the Republic of the Philippines or any of its political subdivisions except
when the beneficial use thereof has been granted, for consideration or otherwise, to a taxable person;

Charitable institutions, churches, parsonages or convents appurtenant thereto, mosques, non-profit or

religious cemeteries and all lands, buildings, and improvements actually, directly, and exclusively
used for religious, charitable or educational purposes;
All machineries and equipment that are actually, directly and exclusively used by local water districts
and government-owned or -controlled corporations engaged in the supply and distribution of water
and/or generation and transmission of electric power;

All real property owned by duly registered cooperatives as provided for under R.A. No. 6938; and
Machinery and equipment used for pollution control and environmental protection.
When Do You Pay Real Property Taxes?

The government provided us with two options for paying our tax liabilities: full payment and
installment payments. Every January 1 of the year is the start of the accrual of tax liabilities for the
owner of real property. You can pay it in one time for the whole year or you can avail the installment
method. Here are the important dates to note for installment quarterly payments:

First quarter: On or before March 31, 2022

Second quarter: On or before June 30, 2022
Third quarter: On or before September 30, 2022
Fourth quarter: On or before December 31, 2022

In accordance with this, it is also important to know that there are reductions ranging from 10% to
20% for early tax payments, which vary for every local government unit.

How Do You Compute Real Property Taxes?

First, the local government must appraise the worth of your actual property, which may be done
using a variety of valuation methodologies. The property’s fair value is calculated, and an assessment
of that value should be considered. The value of real property is subject to a periodic appraisal by the
government. There are several elements that might raise the value of your home. One method is by
infrastructure development, which you may read about here: What increases your home’s value?
Furthermore, Bria Homes is one of the organizations that has continually benefited from
infrastructural developments that raise the value of real estate properties, which is detailed here:
Infrastructure developments to drive value appreciation in BRIA Home