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.