Capital Gains Tax Calculator (Philippines)
Capital Gains Tax in the Philippines is a 6% final tax on the sale of real property classified as a capital asset. The Bureau of Internal Revenue (BIR) computes the tax on the highest of three values: the gross selling price, the BIR Zonal Value, or the Provincial / City Assessor's fair market value. The seller pays CGT within 30 days of sale via BIR Form 1706.
Source: BIR National Internal Revenue Code Section 24(D); RA 8424.
CGT must be paid within 30 days of sale. The Bureau of Internal Revenue (BIR) uses the highest of the three values as the tax base under NIRC Section 24(D).
Frequently asked questions
What is Capital Gains Tax in the Philippines?
Capital Gains Tax (CGT) is a 6% tax on the sale, exchange, or disposition of real property classified as a capital asset. It is paid by the seller within 30 days of the sale.
What value does BIR use to compute CGT?
The Bureau of Internal Revenue uses the highest of three values as the tax base: the selling price (gross), the BIR Zonal Value, or the Provincial / City Assessor's fair market value.
Is CGT the same as Income Tax?
No. CGT is a final tax on the disposition of real property under NIRC Section 24(D). It is separate from regular income tax. Once CGT is paid, the gain is no longer subject to income tax.
Are there exemptions to CGT?
Yes. Sale of a principal residence is exempt if the proceeds are fully utilized to acquire or construct a new principal residence within 18 months and the BIR is notified within 30 days. The exemption can only be availed once every 10 years.
When is CGT due?
CGT must be paid within 30 days of the date of sale, using BIR Form 1706. Late payment incurs a 25% surcharge plus 12% annual interest.
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