Land Donation questions

[papi smith]

But this applies if you buy from developers only di ba. But if you get it from an owner then CGT lang and no VAT di ba?

[boybi]

But this applies if you buy from developers only di ba. But if you get it from an owner then CGT lang and no VAT di ba?

Nag donate ako to my son and I’m not a property developer, pinagbayad ako ng VAT because commercial property daw yung lot.

[papi smith]

Nag donate ako to my son and I’m not a property developer, pinagbayad ako ng VAT because commercial property daw yung lot.

Oh sorry, I was referring to Ry Tower's reply which applies to sales by property developers.

As for donations, I'm not really sure. Iniisip ko lang na kung sale, baka walang VAT, but then medyo mahirap din ma question ng BIR if the recipient is still so young to have the money to acquire a commercial lot. Unless ang allowance nya kayang bumili talaga [emoji3526] Tax free naman ang allowance hehe.

[Ry_Tower]

But this applies if you buy from developers only di ba. But if you get it from an owner then CGT lang and no VAT di ba?

As boybi said, even if you buy from the owner but the BIR assessed that it has commercial value, then they have the right to levy for VAT instead of CGT. It's the nature of the real property and not the ownership which matters.

BIR will always go for the higher tax.

[boybi]

As boybi said, even if you buy from the owner but the BIR assessed that it has commercial value, then they have the right to levy for VAT instead of CGT. It's the nature of the real property and not the ownership which matters.

BIR will always go for the higher tax.

CGT + VAT pinabayad sa akin.

[Vodka]

CGT + VAT pinabayad sa akin.

wow cgt lang dati, kahit commercial properties

yang additional vat, is that due to train law?

[Walter]

How is the VAT calculated? ...

[papi smith]

So dapat pala, next buy ng property ipangalan na sa heir as yan naman eventually mangyayari . Hindi ka na nga tumubo pero bayad ka pa rin ng capital gains tax, dodoblehan ka pa ng Value Added tax.

[Walter]

Just have heir execute SPA ...

[boybi]

wow cgt lang dati, kahit commercial properties

yang additional vat, is that due to train law?

No idea. After ma-process na mga docs and nabayaran na CGT tsaka humirit BIR ng VAT. No choice na ako.

How is the VAT calculated? ...

Hindi ko na inalam. Syempre alam nyo naman saan hahantong ang 'tawaran' sa VAT.

So dapat pala, next buy ng property ipangalan na sa heir as yan naman eventually mangyayari . Hindi ka na nga tumubo pero bayad ka pa rin ng capital gains tax, dodoblehan ka pa ng Value Added tax.

Problema if minor pa ang heir.