PHILIPPINE LAWS, STATUTES, CODES & ISSUANCES
PHILIPPINE LAWS, STATUTES AND CODES
MGA BATAS PAMBANSA
| BATAS PAMBANSA BLG. 37 - AN ACT
AMENDING SECTIONS 34, 45, 51 AND 72 OF THE NATIONAL INTERNAL REVENUE
CODE OF 1977, AS AMENDED, BY SUBJECTING TO THE FINAL TAX CAPITAL GAINS
DERIVED FROM THE SALE OR REAL PROPERTY |
| Section 1.
Sec. 34 of the National Internal Revenue Code of 1977, as amended,
is hereby further amended by adding thereto paragraph (h) to read as
follows: "(h) The
provisions of paragraph (b) of this Section to the contrary
notwithstanding, net capital gains from the sale or other disposition
of real property by citizens of the Philippines or resident alien
individuals shall be subject to the final income tax rates prescribed
as follows:
NET CAPITAL GAINS RATES On the first P100,000 or less 10% On any amount over P100,000 20% such tax shall be in lieu of the tax imposed under Sec. 21 of this Code: Provided, however, That the tax liability, if any, on gains from sales or other dispositions of real property to the government or any of its political subdivisions or agencies or to government-owned or controlled corporations shall be determined either under Sec. 21 hereof or under this Section, at the option of the taxpayer, Provided, further, That if the taxpayer elects to report such gains in accordance with the provisions of Sec. 43(b), the amount of the tax which shall be paid on each installment shall be the proportion of the tax herein imposed, which the installment payment received bears to the total selling price; Provided, finally, That failure on the part of the seller to pay the tax imposed herein on any gains returnable under the installment method will automatically disqualify the seller-taxpayer from paying the tax in installments and the unpaid portion of the tax shall immediately be due and demandable. The tax herein imposed shall be returned and paid in accordance with Sec. 45(c) and 51(a) (4) of this Code. "No registration of any document
transferring real property shall be effected by the Register of Deeds
unless the Commissioner or his duly authorized representative has
certified that such transfer has been reported and the tax herein
imposed, if any, has been paid; in case of deferred-payment sales of
real property where the vendor retains title to the property, the
vendee shall furnish the Commissioner with a copy of the instrument of
sale within the same period prescribed for payment of the tax herein
imposed."
Sec. 2. Subparagraphs (A) and (B) of paragraph (c) of Sec. 45 of the National Internal Revenue Code of 1977, as amended, are hereby renumbered as Subparagraphs (1) and (2), respectively. Sec. 3. Paragraph (c) of Sec. 45, as amended by the preceding Section, is hereby further amended by adding thereto a new Subparagraph (3) to read as follows: "(3) Persons
subject to the tax prescribed under Sec. 34(h) of this Code, shall
file or cause to be filed a separate return prescribed therefor by the
Commissioner within thirty (30) days following each sale or other
disposition of capital assets."
Sec. 4. Sec. 5(a) of the National Internal Revenue Code of 1977, as amended is hereby further amended by adding thereto a new Subparagraph (4), prescribing the manner of payment of the tax imposed on capital gains to read as follows: "(4) Payment of
Capital Gains Tax.
MGA BATAS PAMBANSA BLG. 1 - 50 |