Transfer duty is a tax payable on the transfer of immovable property through sale. It is paid by the purchaser to the registrar of deeds, who then remits it to BURS. Rates are 5% for citizens and 30% for non-citizens. Several transfers are exempt, including those involving inheritance, agricultural land transfers with VAT, and the first $1,000,000 of transfers for citizens. Property is valued based on purchase price, inheritance value, or an appointed valuer's determination. Allowable expenses can be deducted before calculating the duty.
Transfer duty is a tax payable on the transfer of immovable property through sale. It is paid by the purchaser to the registrar of deeds, who then remits it to BURS. Rates are 5% for citizens and 30% for non-citizens. Several transfers are exempt, including those involving inheritance, agricultural land transfers with VAT, and the first $1,000,000 of transfers for citizens. Property is valued based on purchase price, inheritance value, or an appointed valuer's determination. Allowable expenses can be deducted before calculating the duty.
Transfer duty is a tax payable on the transfer of immovable property through sale. It is paid by the purchaser to the registrar of deeds, who then remits it to BURS. Rates are 5% for citizens and 30% for non-citizens. Several transfers are exempt, including those involving inheritance, agricultural land transfers with VAT, and the first $1,000,000 of transfers for citizens. Property is valued based on purchase price, inheritance value, or an appointed valuer's determination. Allowable expenses can be deducted before calculating the duty.
Chargeable on the transfer of immovable property ( by
sales).
Payable by the purchaser in whose name the property is
to be registered at registrar of deeds.
- Payable to the registrar of deeds who then remits to
BURS. Exempt transfers
Properties inherited by the hair of a deceased.
Properties inherited by spouse from deceased estate and transferred to the child or other descendant. Chargeable transfers to citizen waivered in writing by the minister. First P1,000,000 of chargeable transfers to Citizens. Chargeable property on which VAT is payable. 12% of chargeable agricultural land to non citizens on which VAT is payable. Exempt transfers Transfer of property from a trustee to the person entitled to receive the property. Transfer of property portion not previously owned in a joint ownership agreement. Transfer to the creditor of the property of an insolvent used as collateral. Transfer made in correction of an error made in a previous transfer. Properties of a deceased transferred to the surviving spouse married in community of property. Transfer to each other’s names, of property of spouse married in community of property. Transfer Duty Rates 5 % for transfer of all property for citizens 30% on transfer of all property for noncitizens
Citizens ; includes companies with citizens as
majority share holders. Valuation of Property Where transfer is by purchase, value is the purchase price. Where payment is in kind, fair value is used, For inheritance and gifts, value is either based on local council rate or valuation determined by competent value as appointed by registrar of deeds. where registrar of deeds disputes validity of purchase price, valuation is done by valuer appointed by him. If value exceeds purchase price by 33.33%, value is used. Where in discrepancy, purchaser may appeal valuation in court. Payment of Transfer Duty Paid within 6 months after the date of contract of sales or transfer. This is regardless of whether transfer hall be determined by occurrence and non occurrence of future events. 12% annual interest is chargeable as penalty on failure to pay transfer duty on time. Allowable Expenses for Transfer Duty The following can be deducted from transfer value before applying duty rate: Land survey costs Pre or post transfer. Auctioneers and broker commissions & fees up to 2.5% of property value. Auction duties payable Agents fees Deed document fees. Any Other justifiable incidental cost of acquisition.