Tax Resources PH icon

TAX RESOURCES PH

Tax resources for Filipinos

RMC No. 27-2017: Clarifies the basis for the imposition of tax on the sale, exchange or other disposition or real property

Files
Download this file

Summary

RMC No. 27-2017 clarifies the tax base for the sale, exchange or other disposition of real property, whether a capital or ordinary asset.

CollapseExpand

Key points

  1. Tax base. The tax is based on the gross selling price or the current fair market value as determined under Section 6(E) of the Tax Code, whichever is higher.
  2. No other basis. Nothing in the Tax Code or its implementing guidelines provides for a comparative sale or any other tax base. Revenue officials and employees may not apply any other basis for Capital Gains Tax, Income Tax or Withholding Tax on such transactions, as it has no legal basis.

Who is affected

  • Revenue officials and employees
  • Sellers of real property

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.