Definition
A 6% tax withheld by the buyer from the payment to the seller when the seller is a corporation or is habitually engaged in real estate business. This replaces the CGT for such sellers. The buyer remits this to the BIR on behalf of the seller.
Examples
- •When buying from a developer, the buyer withholds 6% for BIR
- •Individual sellers pay CGT instead of withholding tax
Tips & Best Practices
- ✓Get the withholding tax certificate from the developer
- ✓This is different from CGT - they don't stack
- ✓Proper documentation is crucial for compliance
Related Terms
More in Taxes & Fees
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