Real Property Tax Declaration in the Philippines

Real Property Tax Declaration in the Philippines

Finally, you can now purchase your dream property after years of saving and planning whether it’s a cozy family home, a bustling commercial space, or a peaceful land in the countryside. However, owning such real property comes with certain responsibilities, one of which is the processing of tax declaration.

As you hear the word “tax declaration”, it sounds official and maybe even a bit intimidating. Thinking if this is really necessary or how this actually works. This guide is here to help you understand tax declaration on real property covering why it is important when transferring a land title, how it affects your property, where to get tax declaration of real property, and what are the steps you need to take if you consider buying or selling a property. 

What is the Tax declaration of Real Property and its Use?

A tax declaration is an official document issued by the Office of the Municipal Assessor that serves as a record of the assessed property value for the purpose of calculating real property tax (RPT). RPTs are being paid annually by the owner. This document consists of important information such as the owner’s name, property location, property type (whether residential, commercial , agricultural, etc.), and tax declaration number which is often required for property transactions such as selling, buying, or mortgaging real estate. 

Tax Declaration as Proof of Ownership

In terms of legal disputes and land conflicts, presenting tax declarations can serve as evidence particularly in cases where boundaries or ownership are contested. However, keep in mind that even tax declaration serves as a basis, it doesn’t equate full legal ownership. It often used as supporting documentation in establishing ownership, especially in the absence of other documents such as Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT). 

Tax Declaration Requirements

To obtain a tax declaration, specific documents must be presented. These includes:

  1. Request Form for the Issuance of Updated Tax Declaration
  2. Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT)
  3. Deed of Sale, Extrajudicial Settlement, Partition Agreement, or any proof of property transfer
  4. Certificate Authorizing Registration (CAR) issued by the Bureau of Internal Revenue (BIR)
  5. Updated Real Property Tax Payment (Amilyar)
  6. Transfer Tax Receipt
  7. Old Tax Declaration
  8. Valid IDs of Seller, Donor, Assignor, Deceased
  9. Valid ID of Buyer, Donee, Assignee, Heirs

There are specific requirements that must be provided based on the nature of the transaction. Such as

Transfer of Ownership

  • Transfer Certificate of Title: The official document proving ownership of the property.
  • Latest Realty Tax Receipt or Tax Clearance: Proof that all real property taxes have been paid.
  • Certified True Copy of Certificate Authorizing Registration (CAR): Issued by the Bureau of Internal Revenue (BIR), this certificate authorizes the registration of the property transfer.
  • Transfer Tax Receipt or Certification: Evidence of payment of transfer taxes.
  • Deed of Conveyance: This includes documents such as the Deed of Sale, Deed of Donation, Waiver of Rights, Sheriff’s Sale, Extrajudicial Settlement of Estate, and others that convey property ownership.

New Declaration of Building and Machinery

  • Initial Tax Declaration from Municipal Assessor’s Office (MAO): The first tax declaration issued for a new building or machinery.
  • Sworn Statement: A formal declaration signed by the property owner detailing the property’s specifics.
  • Field Appraisal and Assessment Sheet (FAAS): A document detailing the appraisal and assessment of the property.
  • Bill of Materials and Occupancy Permit: Required for building declarations to show the construction details and permit for occupancy.
  • Receipt of Purchase or Proof of Acquisition Cost: For machinery, any document showing the cost of purchase.

Correction of Details (Spelling of Name, Property Identification Number, Barangay, Area, etc.)

  • Transfer Certificate of Title: The title document showing correct information.
  • Latest Realty Tax Receipt or Tax Clearance: Proof of current tax payment status, used to verify and correct records.

How To Get a Tax Declaration?

Here are some of the steps on obtaining a certificate of tax declaration:

  1. Visit the Assessor’s Office: Go to the local Assessor’s Office where the property is located.
  2. Submit Required Documents: Provide the necessary documents listed above.
  3. Assessment and Verification: The assessor will verify the documents and assess the property’s value.
  4. Payment of Fees. Pay all necessary fees like filing fees, annotation fees, and registration fees.
  5. Issuance of New Tax Declaration: Once the assessment is complete, a new tax declaration will be issued in the name of the owner.

Sounds Overwhelming? It doesn’t have to be!

Our experienced team of professionals from Filedocsphil is here to make it seamless and hassle-free. We streamline the entire procedure, ensuring that you have all the necessary documents and that they are correctly filed with the appropriate government offices. Here’s why choosing Filedocsphil is the smart decision:

  • Save Time and Effort: Skip the hassle of navigating bureaucratic procedures and standing in long lines. Let us take care of everything, so you don’t have to spend valuable time dealing with multiple offices.
  • Ensure Accuracy: With our expertise, we guarantee that all forms and documents are meticulously prepared and submitted, significantly reducing the chance of errors or delays. Our precision ensures that your tax declaration is processed smoothly.
  • Receive Expert Guidance: Our experienced professionals are well-versed in the complexities of tax declaration requirements. We provide personalized advice and support, guiding you through every step of the process.

Let FileDocsPhil Do the Work!

Need further information and assistance in your Tax Declaration? Talk to our team at  FILEDOCSPHIL  to know more about the requirements and process. Call us today at  (+63) 917 149 2337 or send an email to info@filedocsphil.com or simply message us through the live chat for more information. 

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