RR No. 08-98: Amends pertinent portions of RR Nos. 11-96 to 2-98 relative to the tax treatment of the sale, transfer or exchange of real property

Summary

RR No. 08-98 amends portions of RR Nos. 11-96 and 2-98 on the tax treatment of the sale, transfer or exchange of real property.

Key points

1. Capital Gains Tax return. The seller files the Capital Gains Tax (CGT) Return within 30 days following each sale or disposition of real property.
2. Where CGT is paid. Payment is made to an Authorized Agent Bank (AAB) located within the Revenue District Office (RDO) having jurisdiction over where the property is located.
3. Creditable withholding tax on ordinary assets. For real property classified as ordinary asset, the withholding agent/buyer pays the creditable withholding taxes upon filing the return with the AAB in the same RDO. Payment is made within 10 days following the end of the month of the transaction.
4. December exception. Taxes withheld in December are filed on or before January 25 of the following year.

Who is affected

• Sellers of real property
• Withholding agents/buyers of real property classified as ordinary asset

Deadlines and effectivity

• CGT Return: within 30 days following each sale or disposition
• Creditable withholding taxes: within 10 days following the end of the month of the transaction
• Taxes withheld in December: on or before January 25 of the following year

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