TRANFER

DUTY
Transfer Duty

 Chargeable on the transfer of immovable property ( by

sales).

 Payable by the purchaser in whose name the property is

to be registered at registrar of deeds.

- Payable to the registrar of deeds who then remits to

BURS.
Exempt transfers

 Properties inherited by the hair of a deceased.

 Properties inherited by spouse from deceased estate and
transferred to the child or other descendant.
 Chargeable transfers to citizen waivered in writing by the
minister.
 First P1,000,000 of chargeable transfers to Citizens.
 Chargeable property on which VAT is payable.
 12% of chargeable agricultural land to non citizens on
which VAT is payable.
Exempt transfers
 Transfer of property from a trustee to the person entitled
to receive the property.
 Transfer of property portion not previously owned in a
joint ownership agreement.
 Transfer to the creditor of the property of an insolvent
used as collateral.
 Transfer made in correction of an error made in a
previous transfer.
 Properties of a deceased transferred to the surviving
spouse married in community of property.
 Transfer to each other’s names, of property of spouse
married in community of property.
Transfer Duty Rates
5 % for transfer of all property for citizens
 30% on transfer of all property for noncitizens

Citizens ; includes companies with citizens as

majority share holders.
Valuation of Property
 Where transfer is by purchase, value is the purchase price.
 Where payment is in kind, fair value is used,
 For inheritance and gifts, value is either based on local
council rate or valuation determined by competent value as
appointed by registrar of deeds.
 where registrar of deeds disputes validity of purchase
price, valuation is done by valuer appointed by him. If
value exceeds purchase price by 33.33%, value is used.
 Where in discrepancy, purchaser may appeal valuation in
court.
Payment of Transfer Duty
 Paid within 6 months after the date of contract
of sales or transfer.
 This is regardless of whether transfer hall be
determined by occurrence and non occurrence of
future events.
 12% annual interest is chargeable as penalty on
failure to pay transfer duty on time.
Allowable Expenses for Transfer Duty
 The following can be deducted from transfer value
before applying duty rate:
 Land survey costs Pre or post transfer.
 Auctioneers and broker commissions & fees up
to 2.5% of property value.
 Auction duties payable
 Agents fees
 Deed document fees.
 Any Other justifiable incidental cost of
acquisition.