According to the Local Government Code, a Tax Declaration is a document that details the value of the real property (land, buildings/improvements, or machinery) for real property tax purposes and is levied against the owner/taxable person or business (RA 7160).
The Owner’s Copy of a Tax Declaration is sent out following registration of a real estate transfer from one owner to another or upon declaration of a new structure, improvement, or piece of equipment. As required by law, anyone purchasing property must register it with the city assessor’s office within sixty (60) days of receiving a Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT).
The local assessor’s office in your town or city must issue the CTD. You must submit it when you register your property, sell it, or give it to someone else. It includes crucial details about your property, such as its location, size, and value. Additionally, it is a crucial document that may enable you to reduce your tax liability. Keep it secure and up to date.
One of the first steps you must take when purchasing real estate in the Philippines is to obtain a Tax Declaration Certificate. It is necessary to have this document to connect utilities and transfer ownership of property, among other things.
It’s critical to have an accurate tax declaration because real estate taxes in the Philippines are calculated based on the value of your property. Having it can also be helpful if you intend to sell your house in the future. This can assist potential buyers in understanding how much the house is worth. Overall, having one is crucial if you own property in the Philippines.
It is acquired from the municipality’s or city’s local assessor’s office in the area where the property is situated. The property owner or their designated agent must make the request.
You will need to provide the following paperwork to obtain it:
An inspector from the assessor’s office will visit the property to verify the information on the tax declaration application after the paperwork has been submitted.
You will receive the official value of your property after the examination. This paperwork must be kept updated because your property’s value may fluctuate over time.
The assessor’s office will issue it upon approval. The property owner or their designated agent must then sign it.
The tax declaration must be signed as proof that you have received it after you get it. You need to be kept safe because it’s a crucial document.
You must update your Tax Declaration Certificate whenever you make any modifications to your property, such as adding features or renovating it. You must deliver a new application form and supporting materials to the assessor’s office to accomplish this.
Every three years, or whenever the value of the property changes, it must be revised. You will be required to pay the amended real estate tax after it has been updated.
The location, whether in a city or a province, affects the tax rates. Each municipality, city, and province should impose a uniform real property tax rate. The deadline for Real Property Tax in 2024 varies depending on the local government unit (LGU) where the property is located. If you are looking for a property in a specific location, it is important to know its tax rates to estimate the real property tax of your dream property.
Notably, the real property tax rate in Manila and other cities should be not less than half (1/2) of one percent (1%) but not more than two percent (2%) on the real property’s assessed value.
Provinces should set their tax rates at not less than one-fourth (1/4) of one percent (1%) and not more than one-half (1/2%) of one percent (1%) of the assessed value of the real estate.
On real estate, there are additional specific levies, such as the following:
Real property taxes do not apply to all real estate transactions. These are some of the homes that are exempt from this tax based on Real Estate Taxation Chapter IV.
