TAXATION ON REAL ESTATE

TRANSACTIONS
Executive Diploma Program in Real Estate Management (EDPREM)
Chamber of Real Estate & Builder’s Associations, Inc. (CREBA)
De La Salle – College of Saint Benilde School of Professional and Continuing Education (DLS-CSB SPACE)
October 30, 2021

BY: ATTY. BEVERLY S. MILO

DIRECTOR II/ HEAD REVENUE EXECUTIVE ASSISTANT
LARGE TAXPAYERS SERVICE (LTS) – EXCISE GROUP
BUREAU OF INTERNAL REVENUE (BIR)
 A. BACKGROUND - BIR BUSINESS PROCESS

1. Registration – inclusion of the taxpayer in the BIR database.

A. Taxpayer Type as:
a. Individual
b. Non-Individual – corporation, partnership and other juridical entity.
B. Stages of Registration
a. Primary – Taxpayer Identification Number (TIN) and/or Certificate of Registration (COR)
 BIR Forms 1901, 1903 and 1904
 Tax Types, Form Types.
 Identify taxpayer’s line of business thru Philippine Standard Industry Code (PSIC).
 PSIC for Real Estate Activities are as follows:
PSIC INDUSTRY
7011 BUYING, SELLING, RENTING, LEASING, OPERATION OF DWELLINGS
7012 REAL ESTATE BUYING, DEVELOPING, SUBDIVIDING, SELLING
7013 CEMETERY DEVELOPMENT, SALE
7019 OTHER REAL ESTATE ACTIVITIES WITH OWN OR LEASED PROPERTY
7020 REAL ESTATE ACTIVITIES ON A FEE OR CONTRACT BASIS

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 A. BACKGROUND - BIR BUSINESS PROCESS

b. Secondary – Authority to Print (ATP), Books of Accounts (BOA), Application for Permit and Branch Registration
i. Principal Invoice/Commercial Documents
 Sales Invoice and Official Receipts
ii. Supplementary Commercial Documents/Invoice
 Acknowledgment Receipts, Statement of Account, Delivery Receipt, etc.
 The use of receipts/invoices that expired during ECQ/MECQ were extended for 30 calendar days and in the
absence of receipts/invoices during the period ECQ/MECQ. The following may be used:
1. BIR Printed Receipts/Invoices; or
2. Scanned copy of receipt/invoice with ATP; or
3. Computer-aided Receipt/Invoice in Excel format without ATP; or
4. Supplementary Receipts/Invoices were issued in lieu of the Principal Receipts/Invoices; or
5. Receipt/Invoice using the existing CAS or its Components with approved Permit to use (PTU) or
Acknowledgment Certificate; however, the said receipt/invoice is being sent electronically or via email
in JPEG, PDF or any equivalent format to the customer; or
6. Receipts/invoice generated from a newly developed receipting invoicing software or CAS or its
Components without duly approved PTU or Acknowledgment Certificate, which was used to
temporarily to generate/issue the receipts/invoices and the receipt/invoice is being sent electronically
in JPEG, PDF or any equivalent format to the customer.

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c. Update of Registration/Correction/Cancellation
 BIR Form 1905 – serve as the form/document for the changes/updating of information.
 A. BACKGROUND - BIR BUSINESS PROCESS

2. Filing – submission of required tax returns/ information - Inventory List,

SAWT, QAP, SLS, SLP, SLI, eSales, etc.
 The Tax Returns must be filed on a periodic basis with deadlines for
filing and payment of tax.
 Deadlines during the Pandemic or declaration of ECQ/MECQ were
moved by several issuances in order to cope up with the Health
Protocol Restrictions
3. Payment – payment of taxes due/payable through acceptable modes of
payment - Manual and electronic.
 Extension/adjustment on tax payments were also made during
ECQ/MECQ declaration.

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 A. BACKGROUND - BIR BUSINESS PROCESS

4. Enforcement –conduct of audit/verification of tax liabilities and implementation of

measures/activities to validate tax and administrative compliance.
COVERAGE:
a) Audit
b) Surveillance
c) Tax Compliance Verification Drive (TCVD)
d) Stock Taking
e) Post-Evaluation
• Cash Register Machines (CRM)/Point-of-Sale (POS) and Other Sales Receipting
Software (OSRS); and
• Computerized Accounting System (CAS)/ Computerized Books of Accounts (CBA)
LATEST STRATEGIES:
 Government coordination and related entities are now monitored for the unregistered
online selling of goods and services
 Viewing of social media and other electronic facilities are necessary to capture business
transactions without complying with existing rules and regulations.

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 REAL ESTATE INDUSTRY

B. KINDS OF PROPERTY
1. CAPITAL ASSETS - shall refer to all real properties held by a taxpayer, whether
or not connected with his trade or business, and which are not included
among the real properties considered as ordinary assets under Sec. 39(A)(1)
of the Code.
2. ORDINARY ASSETS - shall refer to all real properties specifically excluded
from the definition of capital assets under Sec. 39(A)(1) of the Code, namely:
a. Stock in trade of a taxpayer or other real property of a kind which would
properly be included in the inventory of the taxpayer if on hand at the
close of the taxable year; or
b. Real property held by the taxpayer primarily for sale to customers in the
ordinary course of his trade or business; or

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 REAL ESTATE INDUSTRY

c. Real property used in trade or business (i.e., buildings and/or improvements) of

a character which is subject to the allowance for depreciation provided for under
Sec. 34(F) of the Code; or
d. Real property used in trade or business of the taxpayer.

Real properties acquired by banks through foreclosure sales are considered as

their ordinary assets. However, banks shall not be considered as habitually engaged
in the real estate business for purposes of determining the applicable rate of
withholding tax imposed under Sec. 2.57.2(J) of Revenue Regulations No. 2-98, as
amended.

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 REAL ESTATE INDUSTRY

C. TAXPAYERS ENGAGED IN THE REAL ESTATE BUSINESS

1. REAL ESTATE DEALER - shall refer to any person engaged in the business of
buying and selling or exchanging real properties on his own account as a
principal and holding himself out as a full or part-time dealer in real estate.
2. REAL ESTATE DEVELOPER - shall refer to any person engaged in the business
of developing real properties into subdivisions, or building houses on
subdivided lots, or constructing residential or commercial units, townhouses
and other similar units for his own account and offering them for sale or
lease.
3. REAL ESTATE LESSOR - shall refer to any person engaged in the business of
leasing or renting real properties on his own account as a principal and
holding himself out as lessor of real properties being rented out or offered
for rent.

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 REAL ESTATE INDUSTRY

• Taxpayers habitually engaged in the real estate business. - All real properties
acquired in the course of trade or business by a taxpayer habitually engaged in the
sale of real estate shall be considered as ordinary assets.
 Registration with the HLURB or HUDCC as a real estate dealer or developer
shall be sufficient for a taxpayer to be considered as habitually engaged in the
sale of real estate.
 If the taxpayer is not registered with the HLURB or HUDCC as a real estate
dealer or developer, he/it may nevertheless be deemed to be engaged in the
real estate business through the establishment of substantial relevant
evidence (such as consummation during the preceding year of at least six (6)
taxable real estate sale transactions, regardless of amount; registration as
habitually engaged in real estate business with the Local Government Unit or
the Bureau of Internal Revenue, etc.,).

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 REAL ESTATE INDUSTRY

A property purchased for future use in the business, even though

this purpose is later thwarted by circumstances beyond the taxpayer’s
control, does not lose its character as an ordinary asset. Nor does a mere
discontinuance of the active use of the property change its character
previously established as a business property.

Properties classified as ordinary assets for being used in business

by a taxpayer not engaged in real estate business shall be converted into
capital assets upon showing a proof that same have not been used in
business for more than two years prior to the sales transaction/
consummation.

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 REAL ESTATE INDUSTRY

D. CATEGORY OF SALES TRANSACTION UNDER REVENUE REGULATIONS

1. CASH SALE – Payment of full consideration at the time of sale.
2. DEFERRED PAYMENT BASIS – The initial payments of which in the year
of sale exceed 25% of the gross selling price. Also known as Deemed
Cash Sale.
*INITIAL PAYMENTS – Payment/s which the seller receives before or
upon execution of the instrument of sale and payments which he expects
or is scheduled to receive in cash or property during the taxable year
when the sale or disposition of the real property was made.
3. INSTALLMENT PLAN – Sale of real property by a real estate dealer, the
initial payments of which in the year of sale do not exceed twenty-five
(25%) of the gross selling price.

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 REAL ESTATE INDUSTRY
CURRENT VAT THRESHOLD – UPDATE PER CREATE AND REVENUE REGULATIONS NO. 4-2021/8-2021
TRANSACTIONS TAXABLE EXEMPT REMARKS
1. Sale of Lot P1,919,500 P1,919,500 and below Under 2010 Price Index per Revenue
2. Sale of House and Lot P3,199,200 P3,199,200 and below Regulations (RR) No. 16-2011 and 3-
2012
-Effective January 1, 2012
3. Sale of Low Cost Housing P3,000,000 and below HUDCC Memorandum Circular No. 1
4. Socialized Housing of Lot P160,000 Series of 2008 and Revenue
House and Lot P400,000 Memorandum Order (RMO) No. 30-
2009
5. Lease - Commercial Areas P3,000,000 and below *Subject to Percentage Tax of 3% up to
Annual Goss receipts P3,000,000 June 30, 2020
1% from July 1, 2020 to June 30, 2023
6. Lease of Residential Units P15,000/month P15,000 and below Exempt also from Percentage Tax
7.Parking Space/Lots for Parking lots in condominium are
Condominium VATable sales irrespective of amount.

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 REAL ESTATE INDUSTRY

OTHER RELATED MATTERS

1. Period of prescription of Rulings under Section 40 (c) (2)
 Valid only for 90 days counted from the date of receipt of the Ruling by
any of the Parties.
2. Adjacent Lots, house and lots or dwellings in favor of one (1) buyer
 Being combined and utilized as one residential unit by one buyer
within 12-month period is treated as the aggregate values are
combined to determine whether exempt t not per threshold.
3. Association Dues, Membership Fees and other Assessments and Charges
collected on a purely reimbursement basis by homeowners association
and condominium corporations established under RA No. 9904 and RA No.
4726 are exempt from VAT.

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 UPDATES
A. ISSSUANCES ON SOCIALIZED HOUSING
1. Revenue Memorandum Order (RMO) No. 65-2016 – Streamline Process/Procedure for Issuance of
eCAR and Certificate of Tax Exemption (CTE) FOR Transfer of Raw Lands to NHA for Socialized
Housing Under RA No. 7279.
 Application for CTE shall be filled directly to Office of Commissioner
 Documentary Requirements:
a. Certified true copy of the masterlist of socialized housing projects of the National
Government duly issued by the HUDCC;
b. Certified true copy of the Deed of Sale/Donation executed by the landowner in favor of the
NHA;
c. Certified true copy of the Transfer Certificate of Title /Original Certificate of Title and
latest Tax Declaration of the property/ies sold/donated/transferred to NHA; and
d. Extrajudicial Settlement of Estate, in case the title of the property is still in the name of a
deceased landowner, and evidence of payment of appropriate taxes.
 RDO shall issued eCAR within five (5) days from date of submission of the CTE.
 Post Audit evaluation and verification as to the actual development of the property.

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 2. Revenue Memorandum Order (RMO) No. 12-2017 – Streamline Process/Procedure for Issuance of CTE and
eCAR for Transfer of Raw Lands to Community/Home Owners Associations for Socialized Housing Projects
Under the Urban Development and Housing Act of 1992 (RA No. 7279)
 Application for CTE filed directly to Office of the Commissioner
 Documentary Requirements:
a. Original Certification signed by the President of the SHFC that the subject property qualifies and
is actually a CMP Project. Such Certification shall be sufficient guarantee of the validity,
authenticity and due diligence in the review of CMP Project loan application of the Homeowners
Association;
b. Certified True Copy of the Deed of Sale executed by the landowner in favor of the Community
Owners Association;
c. Certified True Copy of the Master List of Beneficiaries;
d. Certified True Copy of the Transfer Certificate of Title/Original Certificate of Title and latest Tax
Declaration of the property; and
e. Extrajudicial Settlement of Estate, in case the title of property is still in the name of the deceased
landowner, and evidence of payment of appropriate taxes.
 RDO shall issued eCAR within five (5) days from date of submission of the CTE.
 Post Audit evaluation and verification as to the actual development of the property.

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 B. Revenue Memorandum Circular (RMC) No. 48-2018 dated May 30, 2018 – Processing Time
of One-Time Transactions for the Issuance of Electronic Certificate Authority Registration
(eCAR)
TRANSACTIONS PROCESSING TIME FROM THE SUBMISSIONOF COMPLETE
DOCUMENTARY REQUIREMENTS (WORKING DAYS)
Individual Taxpayer/Corporation with One (1) Deed of
Sale/Exchange/Donation:
a. One (1) to Three (3) Properties 3 days
b. Four (4) to Ten (10) Properties 5 days
c. Eleven (11) to Fifty (50) Properties 10 days
d. More Than Fifty (50) Properties 20 days
Real Estate Developer – One (1) Deed of
Sales/Exchange Involving Multiple Properties
a. One (1) to Ten (10) Properties 5 days
b. Eleven (11) to Fifty (50) Properties 10 days
c. More than Fifty (50) Properties 20 days

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 C. Revenue Memorandum Circular (RMC) No. 85-2018 dated September 5, 2018 – Clarification
on Issues relative to Issuance of eCAR

1. A single document was executed covering two (2) transactions such as Extrajudicial
Settlement with either waiver of rights/donation or sale.
 Two (2) eCARs must be issued – one for the Estate
– one for either Sale or Donation
 Present two (2) CARs simultaneously to Register of Deeds
2. Two separate documents were executed for Extrajudicial Settlement and Deed of
Absolute Sale or Donation.
 Two (2) eCARs must be issued
 eCAR for estate must first be submitted for issuance of title and the new title will be
the basis for issuance of eCAR for the other/succeeding transaction.
 Taxes for the two (2) transactions may be paid at the same time.

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D. Revenue Regulations (RR) No. 3-2019 dated March 28, 2019
 Use of the Electronic Certificate Authorizing Registration System (eCAR) System
 Mandate LRA to use the eCAR system with Bar Code.
 BIR and LRA Systems are linked to make use of LRA-BIR eCAR Verification System (LRA-BIR eVS)
 Issuance of one (1) eCAR per title or one (1) eCAR for each tax declaration.
 Five (5) years validity period
 Revalidation for expired manually issued eCAR.
 Information to be reflected/inscribed in the new title or tax declaration for untitled property.
1. eCAR Number;
2. Date of eCAR issuance;
3. Amount and date of payment per tax type; and
4. RDO No.

*TIN of transferee shall be indicated in the face of the newly issued Tax Declaration.

REAL ESTATE TAXATION UPDATES October 30, 2021

 E. Revenue Memorandum Circular (RMC) No. 60-2019 – Clarifying RMC No. 9-2018 on
Documentary Requirements for eCAR Processing
 In case of sale of real property located within an ecozone by a PEZA-registered Ecozone
Developer/Operator enjoying the 5% final tax on GIE to another PEZA-registered enterprise
likewise enjoying the 5% final tax incentive, both parties are exempt from DST imposed under
Section 196 of NIRC, as amended by Republic Act No. 10963 otherwise known as Tax Reform for
Acceleration and Inclusion (TRAIN) Law, provided that such sale or disposition is directly
pursuant to their registered activities.

Documentary Requirements to Support Tax Exemption for eCAR Issuance

1. Certified True of the Latest PEZA Certificate of Registration of the PEZA Ecozone
Developer/Operator and the parties to the transaction;
2. Certified True Copy of PEZA Registration Agreement; and
3. Certified True Copy of the following PEZA certificate of available tax incentives as of the time of
the transaction:
a. PEZA Form No. 00-00-01 – Certification on Entitlement of 5% Gross Income Tax; and
b. PEZA From No. 00-03-01 – Certification on Available Incentives.

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 F. Revenue Memorandum Circular (RMC) No. 115-2020 – Issuance of Certificate of Zonal Values
 No longer required for purposes of computing taxes relative to One Time Transaction
(ONETT) with BIR such as Estate, Donor, Capital Gains Tax.

G. Revenue Memorandum Circular (RMC) No. 4-2021 dated Dec. 22, 2020 – Guidelines in the
Filing of Tax Returns Including the Required Attachment and Payment of Taxes.
Taxpayers Required to Use eBIR Forms
List of Taxpayers Related Issuances
1. xxx xxx
2. xxx xxx
3. xxx xxx
4. One-Time Transaction (ONETT) taxpayers who are classified as real RR No. 9-2016
estate dealers/developers; those who are considered as habitually engaged
in the sale of real property who are using/filing BIR Form No. 1606 together
with the BIR Form No. 2000OT and regular taxpayers already covered by
eBIRForms.

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 H. Tax Amnesty Act under RA No. 11213 and RR No. 17-2021 to Implement the
Extension of Estate Tax Amnesty Pursuant to RA No. 11569
POLICY:
a. Provide a one-time opportunity to settle estate tax obligations through an estate tax
amnesty program that will give reasonable tax relief to estates with deficiency estate
taxes;
b. Broaden the tax base by offering a general tax amnesty for all unpaid internal
revenue taxes that will help cleanse, organize, and improve the Bureau of Internal
Revenue’s database;
c. Enhance revenue collection by providing a tax amnesty on delinquencies that will
minimize administrative costs in pursuing tax cases and declog the dockets of the
Bureau of Internal Revenue and the courts; and
d. Provide a more equitable tax system by adopting a comprehensive tax reform
program that will simplify the requirements on tax amnesties with the use of
simplified forms, and utilization of information technology in broadening the tax
base.

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 H. Tax Amnesty Act under RA No. 11213 and RR No. 17-2021 to Implement the
Extension of Estate Tax Amnesty Pursuant to RA No. 11569
DEFINITION OF TERMS:
a. BASIC TAX ASSESSED refers to the latest amount of tax assessment issued
by the Bureau of Internal Revenue against the taxpayer, exclusive of
interest, penalties, and surcharges.
b. NET ESTATE refers to the gross estate less all allowable deductions as
provided in the National Internal Revenue Code of 1997, as amended, or
the applicable estate tax laws prevailing at the time of death of the
decedent.
c. NET UNDECLARED ESTATE refers to the difference between the total net
estate valued at the time of death and the net estate previously declared
with the Bureau of Internal Revenue, if any.

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 NOTES:
 Amnesty tax rate of 6% shall be based on net undeclared estate if
there is a previously filed estate tax return.

Total Accumulated Net Estate P25,000,000

Less: Properties declared in previous estate tax return 17,000,000
Net undeclared estate 8,000,000
Multiply by 6%
Tax Payable P480,000
 Minimum Estate Tax Payable P5,000

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 AVAILMENT

Who Shall File  Administrator/Executor.

 Heirs, beneficiaries or transferees in the absence of administrators.
Period  Covers taxable year 2017 and prior years.
 Avail of amnesty within 2 years from effectivity of the Implementing Rules
and Regulations which was extended up to June 14, 2023.
Place of Filing  Revenue District Office (RDO) covering the last residence of decedent as
venue for filing the Sworn Estate Tax Amnesty Return.
 For Non-Resident decedent, the filing of return shall be in RDO No. 39 or at
the RDO where the executor/administrator is registered, or legal residence of
executor or administrator if not registered.
Multiple  File the return under the name of the last decedent and pay estate tax based
Decedent on total net estate at the time of death of the last decedent.
 Estate Tax Amnesty Return (ETAR) covers all accrued taxes from all prior
decedents or donors but separate ETAR is required per decedent.

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 AVAILMENT

Payment  The Sworn ETAR (BIR Form No. 2118-EA) must be accompanied by
Acceptance Payment Form (APF-BIR Form No. 0621-EA) duly endorsed by
RDO concerned.
 Submission of proof of payment and complete documents must be made on
or before June 14, 2023.
 Failure to submit will warrant application of the regular estate tax due
inclusive of penalties.
 eCAR issuance upon compliance. No eCAR for properties not included in the
payment of amnesty but executor/administrator may pay under amnesty if
still within the period.
Conditions and  Coordination of BIR with other government agencies to set up system
Impact of Filing enabling the transfer of title, cash withdrawal from the decedent’s bank
the ETAR accounts.
 Full compliance with the conditions and requirements shall make the filed
return final and filed return.

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 REPUBLIC ACT NO. 11534 – CORPORATE RECOVERY AND TAX INCENTIVES FOR ENTERPRISES ACT OR
CREATE
AMENDMENTS/CHANGES
1. Inclusion of One Person Corporation in the definition of Corporation.
ONE PERSON CORPORATION – corporation with a single stockholder which maybe form by the following:
a. Natural person;
b. Trust
c. Estate
2. Reduced Tax Rates as shown below:
The higher between the “Regular” or “Minimum Corporate
Income Tax (MCIT))” Rates
TYPE OF CORPORATION Regular MCIT
Rate Effectivity Rate Effectivity
DOMESTIC CORPORATION
Domestic Corporations, in general 25% July 1, 2020 1% July 1, 2020 to
June 30, 2023

2% July 1, 2023
For corporations with net taxable income not exceeding Five Million Pesos (P5,000,000) AND total assets 20% July 1, 2020 1% July 1, 2020 to
not exceeding One Hundred Million (P100,000,000), excluding the land on which the particular business June 30, 2023
entity’s office, plant and equipment are situated
2% July 1, 2023
Proprietary Educational Institutions and Hospitals 1% July 1, 2020 to Not Applicable
June 30, 2023

10% July 1, 2023

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 REPUBLIC ACT NO. 11534 – CORPORATE RECOVERY AND TAX INCENTIVES FOR
ENTERPRISES ACT OR CREATE

The higher between the “Regular” or “Minimum Corporate Income Tax (MCIT))” Rates
TYPE OF CORPORATION
Regular MCIT
Rate Effectivity Rate Effectivity
FOREIGN CORPORATION [on taxable income (e.g., net or
gross income, as applicable) derived from all sources
within the Philippines]:
Resident Foreign Corporation 25% July 1, 2020 1% July 1, 2020 to June 30, 2023

2% July 1, 2023
Offshore Banking Unit (OBUs) 25% Upon the 1% Upon the effectivity of the CREATE
(Note: OBUs shall now be taxed as resident foreign effectivity of the until June 30, 2023
corporation upon effectivity of the CREATE) CREATE
2% July 1, 2023
Regional Operating Headquarters (ROHQ) 25% January 1, 2022 1% January 1, 2022 to June 30, 2023

2% July 1, 2023
Non-Resident Foreign Corporation 25% January 1, 2021 Not Applicable

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 REPUBLIC ACT NO. 11534 – CORPORATE RECOVERY AND TAX INCENTIVES FOR ENTERPRISES ACT OR
CREATE

3. NEW RATES ON PASSIVE INCOME

TYPE OF RATE EFFECTIVITY
INDIVIDUAL/ NATURE OF INCOME
CORPORATION
Non-Resident Winnings from Philippine Charity Sweepstake 20%
Alien Individual Office (PCSO) games amounting to more than
P10,000.00 Upon the effectivity of the CREATE
Winnings from PCSO games amounting to Exempt
P10,000.00 and below
Domestic Intercorporate Dividends (domestic and foreign From another domestic For foreign source dividends, these will
Corporation source dividends) corporation - Exempt be exempt from income tax upon the
effectivity of the CREATE, subject to the
conditions imposed under Section 5 of
From nonresident foreign these Regulations
corporation – 25% or 20%, as
the case may be
Resident Foreign Interest income from a depository bank under 15% Upon the effectivity of the CREATE
Corporation the expanded foreign currency deposit system
Capital gains from sale of shares of stock not 15% Upon the effectivity of the CREATE
traded in the stock exchange

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 REPUBLIC ACT NO. 11534 – CORPORATE RECOVERY AND TAX INCENTIVES FOR ENTERPRISES ACT OR
CREATE
3. NEW RATES ON PASSIVE INCOME
TYPE OF INDIVIDUAL/ NATURE OF INCOME RATE EFFECTIVITY
CORPORATION
Non-Resident Foreign Gross income received from all sources within the Philippines, such as 25% January 1, 2021
Corporation interest, dividends, rents, royalties, salaries, premiums (except
reinsurance premiums), annuities, emoluments or other fixed or
determinable annual, periodic or casual gains, profits and income, and
capital gains, except capital gains from sale of shares of stock not traded
in the stock exchange
Intercorporate dividend received from a domestic corporation, in 25% January 1, 2021
general

However, if the country in which the non-resident foreign corporation is 15% January 1, 2021
domiciled, allows a tax credit equivalent to the difference between the
regular income tax rate of 25% under Section 28(B)(1) of the Tax Code
(25%) and the fifteen percent (15%) tax on intercorporate dividends or
does not impose tax on dividends, the rate to be imposed shall be 15%
Capital gains from sale of shares of stock not traded in the stock 15% Upon the effectivity
exchange of the CREATE

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 REPUBLIC ACT NO. 11534 – CORPORATE RECOVERY AND TAX INCENTIVES FOR
ENTERPRISES ACT OR CREATE

4. Improperly Accumulated Earnings Tax

 No longer imposable on corporations beginning July 1, 2020
5. Additional revision of some items of deductions under Section 34 such as
labor training expenses, interest expense etc.
6. Non-Recognition of Gain or Loss on Exchange of Property
 Reorganization of corporations
 Transfer of property to a corporation by a person, alone or together
with others, not exceeding 4 persons in exchange for stock, unit of
participation etc.
 Sale or exchange of property used for business for shares of stocks shall
not be subject to VAT. Confirmation of tax ruling by BIR is no longer
required for purposes of availing tax exemption.

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 -End-
Thank you…

37 TAXATION ON REAL ESTATE TRANSACTIONS October 30, 2021