Author Topic: Capital Gains Tax on Assume Balance deal  (Read 8029 times)

Offline andrei

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Capital Gains Tax on Assume Balance deal
« on: February 25, 2015, 12:08:04 AM »
Hi experts! hope you can help me :)

here's the situation

seller is selling me his property in consideration for
  1. assume mortgage. let's place remaining value of mortgage at 2M
  2. reimburse money already paid on property (ie downpayment/equity, previous mortgage payments) totaling to let's say 1M

Question is how much capital gains tax does the seller need to pay?  will it be based on 3M or 1M? also, when should capital gains tax be paid? upon mortgage assumption by me as the buyer?

any help would be greatly appreciated! hope to get answers soon .. sayang kasi yung deal hehe :)

thanks ulit

Online Administrator

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Re: Capital Gains Tax on Assume Balance deal
« Reply #1 on: February 27, 2015, 11:45:53 AM »


Capital Gains Tax is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sale.

[return to index]

Final Capital Gains Tax for Onerous Transfer of Real Property Classified as Capital Assets (Taxable and Exempt)

Tax Form

BIR Form 1706 – Final Capital Gains Tax Return (For Onerous Transfer of Real Property Classified as Capital Assets -Taxable and Exempt)

Documentary Requirements

1) One original copy and one photocopy of the Notarized Deed of Sale or Exchange

2) Photocopy of the Original Certificate of Title; Transfer Certificate of Title; or Condominium Certificate of Title in case of a condo unit

3) Certified True Copy of the tax declaration on the lot and/or improvement during nearest time of sale

4) “Certificate of No Improvement” issued by the Assessor’s office where the property has no declared improvement, if applicable or Sworn Declaration/Affidavit of No Improvement by at least one (1) of the transferees

5) Copy of BIR Ruling for tax exemption confirmed by BIR, if applicable

6) Duly approved Tax Debit Memo, if applicable

7) “Sworn Declaration of Intent” as prescribed under Revenue Regulations 13-99, if the transaction is tax-exempt

8) Documents supporting the exemption

Additional requirements may be requested for presentation during audit of the tax case depending upon existing audit procedures.


File the Capital Gains Tax return in triplicate (two copies for the BIR and one copy for the taxpayer) with the Authorized Agent Bank (AAB) in the Revenue District where the property is located. In places where there are no AAB, the return will be filed directly with the Revenue Collection Officer or Authorized City or Municipal Treasurer.

One-Time Transaction (ONETT) taxpayers shall mandatorily use the eBIRForms in filing all of their tax returns. They may opt to submit their tax returns manually using the eBIRForms Offline Package in the RDO where the property is located or electronically through the use of the Online eBIRForms System. (Sec. 3(2) RR No. 6-2014)

Tax Rates

For real property - 6%.


Within 30 days after each sale, exchange, transfer or other disposition of real property.

Offline jana2016

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Re: Capital Gains Tax on Assume Balance deal
« Reply #2 on: July 21, 2016, 12:11:19 PM »
I am looking for buyer to assume balance of my pre-selling 1-bedroom unit with balcony at Victoria Station 2 located beside GMA MRT - Kamuning Station
Asking price: Php250K
Remaining balance of Php1.1M to be assumed by buyer.
Feel free to PM me or contact 09771040320. Thanks!
« Last Edit: July 21, 2016, 01:39:30 PM by jana2016 »