As the fruit of your hard work, you are now able to buy property for yourself and your family. Building and moving into your dream property was once something that you only thought would never happen. But now that you have achieved the property that you have worked hard for, comes the duties and responsibilities that come with being a property owner.
One of which is the payment of real property tax, colloquially known asamilyar.
The Bureau of Internal Revenue defines real property as having the “same meaning attributed to that term under Article 415 of Republic Act No. 386, otherwise known as the Civil Code of the Philippines”, as mentioned in Section 2 of the BIR Revenue Regulations No. 7-2003.
Article 415 of the Civil Code enumerates those that fall under immovable property. For the purpose of real property taxation, there are instances where personal property shall also be considered taxable under real property tax. Improvements are also subject to real property tax.
Section 233 of the Local Government Code states the rates of levy for the imposition of real property taxes. For provinces, the rate shall not exceed one percent (1%) of the assessed value of real property, however, if it is a city or a municipality within the Metropolitan Manila Area, the rate shall not exceed two percent (2%) of the assessed value of real property.
As to the collection of real property tax, Section 246 of the Local Government Code states that RPT shall accrue on the 1st day of January and since that date shall constitute as a lien that is superior in nature. The lien shall only be extinguished once the delinquent tax has been paid.
Section 247 provides that the city or municipal treasurer shall be responsible for the collection of the RPT. A barangay treasurer may collect RPT if duly deputized and whose bond is paid for by the corresponding city or municipal government.
Section 250 of the Local Government Code states that payment may be done in four equal installments, on or before the following dates: March 31, June 30, September 30, and December 31. If payments were made in advance, the sanggunian may grant a discount, amount of which shall not exceed twenty percent (20%) of the annual tax code, as mentioned in Section 251 thereof. If you, however, fail to pay RPT, Section 255 states that you must pay interest at the rate of two percent (2%) per month on the unpaid amount or a fraction of which, until you have fully paid the amount due. This is provided that the total interest of the unpaid tax or portion does not exceed thirty-six (36) months.
For the actual payment of the real property tax, you need to submit the following at the municipal treasurer’s office if you are a first-time taxpayer: (a) Original certificate of title, condominium title, or transfer certificate of title, and (b) tax declaration number.
However, if you have paid for real property tax prior, you need only to submit the previously issued Property Tax Official Receipt. Once these documents have been given and a corresponding assessment has been issued, you may now pay for the real property tax at the cashier.
Need further information and assistance regarding real property tax payment 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 firstname.lastname@example.org for more information.