What do you need to know about real estate taxes in the Philippines?
Rates of real property tax in the Philippines
Additional taxes for real estate properties
Deadline of real property tax payments
Where to pay real property tax payments
Consequences of failing to pay real property tax 카지노사이트
Purchasing a real estate property is often deemed a rewarding experience for many people. For those who want to establish their life comfortably, signing a deed of sale is defined as a pinnacle of success. However, everyone should know that buying a home also entails a series of responsibilities. For one, homebuyers have a civic duty to assess, declare, and pay their real estate taxes in the Philippines.
You should be knowledgeable about the taxes cornered in owning a property. According to Republic Act No. 7160 or RA 7160, the government shall administer, apprise, levy, and collect real property tax. Continue reading on to learn more about this.
What Is Real Property Tax?
If you are a homebuyer, you might be wondering about what exactly is real property tax. Local government units (LGU) are given the authority to collect their source of revenue to fund public expenditure. Real property tax (RPT) is a type of revenue source for the LGU. It is levied every year, and the property owner or administrator is responsible for the tax payment. 안전한카지노사이트
Rates Of Real Property Tax In The Philippines
Under Section 233 of the RA 7160, the rates of real property tax will depend on the respective location of the property and the assessed value of the property in the Philippines. The rate of real property tax within the Metropolitan Manila Area is 2% assessed value of the real property. In comparison, the rate for provincial areas is 1% of the assessed value of the real property. The assessment levels used to determine real property value are fixed according to ordinances.
To compute your property’s RPT, you need to multiply the RPT rate along with your property’s assessed value. You can refer to the assessment levels prescribed in Section 218 of the RA 7160.
For example, if you own residential land in Cagayan de Oro with a market price of P3,000,000.00. Multiply P3,000,000.00 with the corresponding assessment level (20%). Afterward, multiply this with the provincial RPT rate (2%). The real property tax you need to pay is P12,000.
Additional Taxes For Real Estate Properties
Apart from the real property tax, LGUs can collect additional taxes from you, accrued to the Special Education Fund. An additional 1% can be levied on top of the assessed value of the real property. This will be used as part of the budget of local schools.
Another additional tax that can be levied from real estate properties includes the ad valorem tax on properties that become idle. For this, the rate will not exceed 5% of the assessed value of the real property. This is why it is always ideal to put your property to good use instead of leaving it idle. If you want, you can always generate passive income from your residential properties. 카지노사이트 추천
Deadline of Real Property Tax Payments
As a property owner, you can choose to pay your real property tax in full for a whole year or through quarterly payments. The payment deadline will be on or before January 31 every year for those who choose to pay in full. However, if you choose to pay quarterly, the deadline dates are:
1st quarter: On or before March 31
2nd quarter: On or before June 30
3rd quarter: On or before September 30
4th quarter: On or before December 31
Where To Pay Real Property Tax Payments
Property owners can pay their real property tax at the Treasurer’s Office of the LGU in Land Tax. Keep in mind that you can always pay the tax in advance. In fact, some cities offer tax discounts for advance payments. Make sure to check with your local treasurer for more information about this.
Consequences of Failing To Pay Real Property Tax
You are responsible for the financial obligations that come with your property. If it so happens that you fail to pay your real property tax, there will be corresponding penalties to pay as well. Late payments are subject to a 2% interest per unpaid amount. This amount can reach up to a maximum of 72% if unpaid for three years.
Indeed, owning your dream home can be rewarding, but it is also a responsibility. As an owner, it is your civic obligation to pay your real property tax every year promptly. This article provides a comprehensive guide to real estate taxes in the Philippines to help you get started.