Philippines Tax Agency Issues Ruling on Taxation of Capital Gains, Document Recording Taxes for Property Reconveyance

The Philippine Bureau of Internal Revenue July 3 issued BIR Ruling No. 371-2020, explaining the capital gains and document recording taxation for a land transfer through a reconveyance deed arising out of a court order based on a compromise agreement. The tax agency explained that: 1) capital gains tax does not apply to the transaction as the reconveyance deed was executed without any consideration; and 2) a stamp tax does apply for the notarial acknowledgment of the transaction. [Philippines, Bureau of Internal Revenue, 07/03/20]

Reference:
View Ruling No. OT-0371-2020. View Index.