Real Property Tax (RPT)in the Philippines is a fundamental component of the country’s taxation system, specifically designed to generate revenue for local government units.
“Amilyar”in the Philippines is a term commonly used to refer to property tax and it is a fundamental component of the country’s taxation system. It is a term used to refer to the property tax imposed on real estate and other types of properties. This tax is a crucial source of revenue for local government units and plays a significant role in funding essential public services and infrastructure development.
How is Real Property Tax or “Amilyar” calculated?
The formula to compute real estate tax isREAL ESTATE TAX = REAL ESTATE RATE X ASSESSED VALUE OF THE PROPERTY.The assessed value of the property is defined by its fair market value multiplied by the assessment level fixed through ordinances by the respective Sanggunian of the concerned city or municipality.
Example:
A residential property located in Muntinlupa, Metro Manila, owned by Jane Reyes, is said to have a market price of Php 25,000,000.00. The land portion of the property has a value of Php 15,000,000.00 while the structure of the house itself, also known as building or improvement, is valued at Php 10,000,000.00
Learning how to compute the real property tax starts with determining the total assessed value of the property. Do this by simply adding the assessed value of the residential land and the assessed value of the building.
(1) Assessed Value of Land:
Residential land (Php15,000,000) x Assessment Level (20%) =Php 3,000,000.00
(2) Assessed Value of the Building:
House (Php10,000,000) x Assessment Level (40%) = Php 4,000,000.00
(3) Total Assessed Value of the Property:
(1) + (2) = Php 7,000,000.00
Now that we have the total assessed value of the property, we can multiply it by the appropriate real property tax rate to determine the tax amount that must be paid.
Note assessment levels imposed upon the property varies as to the type of property, for example, an improvement will have a different assessment level from a lot.
(4) Real Property Tax:(3) x Metro Manila RPT rate (2%) = Php 1,400,000.00
The total basic real property tax to be paid by Jane Reyes is Php 1,400,000.00
Note: That the percentage for the computation of the real property tax (RPT) can range from 1% to 2% depending on the location of the property.
Are there any exemptions or discounts available for real property tax?
Exemptions or discounts may be available for certain properties like government-owned lands, religious institutions, or properties used for charitable purposes. Local laws and regulations will specify eligibility criteria.
SEC. 234 Exemptions from Real Property Tax
(a) Real property owned by the Republic of the Philippines or any of its political subdivisions except when the beneficial use thereof has been granted, for consideration or otherwise, to a taxable person;
(b) Charitable institutions, churches, parsonages or convents appurtenant thereto, mosques, nonprofit or religious cemeteries and all lands, buildings, and improvements actually, directly, and exclusively used for religious, charitable or educational purposes;
(c) All machineries and equipment that are actually, directly and exclusively used by local water districts and government-owned or -controlled corporations engaged in the supply and distribution of water and/or generation and transmission of electric power;
(d) All real property owned by duly registered cooperatives as provided for under R. A. No. 6938; and cralaw:red
(e) Machinery and equipment used for pollution control and environmental protection. Except as provided herein, any exemption from payment of real property tax previously granted to, or presently enjoyed by, all persons, whether natural or juridical, including all government-owned or -controlled corporations are hereby withdrawn upon the effectivity of this Code.
Note:UnderSection 206 of the Local Government Code, taxpayers must claim exemption from real property tax with their local government within 30 days.
When can I pay my real Property Tax Online?
Property owners can pay real estate taxes either in full or through quarterly installments at the city or municipal treasurer’s office.
Those who wish to pay in full must do so by January 31 of each year, while those who wish to pay quarterly have the following deadlines:
First Quarter: On or before March 31
Second Quarter: On or before June 30
Third Quarter: On or before September 30
Fourth Quarter: On or before December 31
When is the Deadline for Amilyar?
Real property owners must pay their amilyars on or before January 31 of every year.
Note:Failure to pay on time will result in 2% interest/penalty of the unpaid amilyar amount per month with a maximum of 72% for 3 years (36 months). After 3 years, the LGU may auction your property. In extreme cases, it could lead to foreclosure or seizure of the property by the government.
On the other hand if you pay early or in advance, the concerned local government may give you a 5 to 20% discount on the amilyar.
Where can I pay my Real Property Tax?
There are two ways you can use to pay your amilyar:in-personandonline.
To payin person, you can visit your LGU’s Treasurer’s Office or through their designated centers.
Many local governments now offeronline paymentoptions for real property taxes to provide convenience to taxpayers.
Caloocan:Caloocan City Web Portal
Makati:MakatiOnline Payments
Mandaluyong:Mandaluyong City Online Services
Manila:Go Manila
Muntinlupa:Muntinlupa Online Real Property Payment System
Pasig:Pasig City’s Online Services
Quezon City:QC E-Services
San Juan:Makabagong San Juan
Valenzuela:Valenzuela City Online Services
Real Property Taxor“Amilyar”is an essential revenue source for local governments and plays a crucial role in funding public services and infrastructure development.
Moreover, real property tax serves as an incentive for property owners to properly maintain their properties and contribute to the overall economic growth of their communities. It is important for property owners to understand the importance of paying their amilyar obligations on time and accurately to ensure that local governments can continue providing essential services.
Should you need help or assistance in the payment of theReal Property Tax or “Amilyar”. Talk to our team at FILEDOCSPHIL. Call us today at (+632) 8478 5826 or send an email to info@filedocsphil.com for more information.
According to the Bureau of Internal Revenue, the eCAR is “an electronically generated Certificate Authorizing Registration issued by the Commissioner or his duly authorized representative attesting that the transfer and conveyance of land, buildings/improvements or shares of stock arising from sale, barter or exchange have been reported and the taxes due inclusive of the documentary stamp tax, have been fully paid.”
The Bureau of Internal Revenue also defines the Electronic Certificate Authorizing Registration System (eCAR System) as “a stand-alone system developed and owned by the BIR for the automated creation of eCAR which is the basis for transferring the real and personal properties from the transferor to the transferee after payment of the correct taxes and other dues that allows monitoring through audit trails and generated reports.”
The implementation of the eCAR and eCAR System is in accordance with BIR Revenue Memorandum Circular No. 40-2014 and BIR Revenue Regulations No. 3-2019, respectively.
We have discussed the importance of a BIR CAR in this blog.
Shares of stock are personal properties which are covered by the above BIR regulation. While the shares of stock may be transferred, the Revised Corporation Code specifically states that the transfer should be recorded in the books (or stock and transfer book) of the corporation. The revised corporation code state:
“SEC. 62.Certificate of Stock and Transfer of Shares.– The capital stock of corporations shall be divided into shares for which certificates signed by the president or vice president, countersigned by the secretary or assistant secretary, and sealed with the seal of the corporation shall be issued in accordance with the bylaws.
Shares of stock so issued are personal property and may be transferred by delivery of the certificate or certificates endorsed by the owner, his attorney in-fact, or any other person legally authorized to make the transfer. </span No transfer, however, shall be valid, except as between the parties, until the transfer is recorded in the books of the corporation showing the names of the parties to the transaction, the date of the transfer, the number of the certificate or certificates, and the number of shares transferred.
There is, however, an additional task imposed upon the corporate secretary before any recording in the stock and transfer book is made. This is following BIR RR 06-08 and RMC 37-2012, which states that “In order to transfer ownership of shares of stock not traded in the Stock Exchange, it is necessary to secure a CAR pursuant to the process laid down in RMO No. 15-03. The receipts of the payment of the tax should also be filed with and recorded by the secretary of the corporation pursuant to Section 11 of RR No. 06-08.”
By analogy, since CAR is now replaced by the eCAR, to be able to transfer shares of stock, one must then secure an eCAR.
Need further information and assistance regarding the importance of E-CAR shares of stock in the Philippines? Talk to our team at FILEDOCSPHIL to know more about the requirements and process. Call us today at (+632) 8478 5826 or send an email to info@filedocsphil.com for more information.
