Procedures in Capital Tax Gain
Procedures in Capital Tax Gain
Procedures in Capital Tax Gain
The Capital Gains Tax Return (BIR Form No. 1706) shall be filed in triplicate copies by
the Seller/Transferor who are natural or juridical whether resident or non-resident,
including Estates and Trusts, who sell, exchange, or dispose of a real property located
in the Philippines classified as capital asset as defined under Sec. 39 (A) (1) of RA No.
8424. The term “sale” includes pacto de retro sale and other forms of conditional sales.
The transaction may be taxable or exempt.
Taxpayers who are filing BIR Form No. 1706 are excluded in the mandatory coverage
from using the eBIRForms (Section 2 of RR No. 9-2016)
The Capital Gains Tax Return (BIR Form No. 1706) shall be filed and paid within thirty
(30) days following the sale, exchange or disposition of real property, with any
Authorized Agent Bank (AAB) or Revenue Collection Officer (RCO) of the Revenue
District Office (RDO) having jurisdiction over the place where the property being
transferred is located.
When the return is filed with an AAB, taxpayer must accomplish and submit BIR-
prescribed deposit slip, which the bank teller shall machine validate as evidence that
payment was received by the AAB. The AAB receiving the tax return shall stamp mark
the word “Received” on the return and also machine validate the return as proof of filing
the return and payment of the tax by the taxpayer, respectively. The machine validation
shall reflect the date of payment, amount paid and transactions code, the name of the
bank, branch code, teller’s code and teller’s initial. Bank debit memo number and date
should be indicated in the return for taxpayers paying under the bank debit system.
Filing and payment may also be made using the electronic filing and payment facilities
of the BIR (i.e., EFPS/eBIRForms and G-cash, credit, debit card/prepaid card)
For transactions covered by one (1) Deed of Sale/Exchange/Donation involving one (1)
to three (3) properties, the taxpayer can avail of the ‘fast lane’ pursuant to Revenue
Memorandum Circular (RMC) No. 43-2018, as amended by RMC No. 107-2018.
Payments amounting to twenty thousand pesos (P 20,000.00) and below shall be paid
in cash while payments above twenty thousand pesos (P 20,000.00) shall be made
through Manager’s Check or Cashier’s Check to the RCO of the RDO having jurisdiction
over the place where the property being transferred is located.
Tax Rate
Tax Form
BIR Form 1707 - Capital Gains Tax Return (For Onerous Transfer of Shares of Stocks
Not Traded Through the Local Stock Exchange)
Documentary Requirements
Procedures
The Capital Gains Tax Return (BIR Form No. 1707) shall be filed in triplicate by every
natural or juridical person, resident or non-resident, for sale, barter, exchange or other
onerous disposition of shares of stock in a domestic corporation, classified as capital
assets, not traded through the local stock exchange.
Taxpayers who are filing BIR Form No. 1707 are excluded in the mandatory coverage
from using the eBIRForms (Section 2 of RR No. 9-2016).
When the return is filed with an AAB, taxpayer must accomplish and submit BIR-
prescribed deposit slip, which the bank teller shall machine validate as evidence that
payment was received by the AAB. The AAB receiving the tax return shall stamp mark
the word “Received” on the return and also machine validate the return as proof of filing
the return and payment of the tax by the taxpayer, respectively. The machine validation
shall reflect the date of payment, amount paid and transactions code, the name of the
bank, branch code, teller’s code and teller’s initial. Bank debit memo number and date
should be indicated in the return for taxpayers paying under the bank debit system.
Filing and payment may also be made using the electronic filing and payment facilities
of the BIR (i.e., EFPS/eBIRForms and G-cash, credit, debit card/prepaid card)
Tax Rates
Effective January 1, 1998 to December 31, 2017 (RA No. 8424/NIRC of 1997)
[return to index]
Tax Form
BIR Form 1707A - Annual Capital Gains Tax Return (For Onerous Transfer of Shares of
Stocks Not Traded Through the Local Stock Exchange)
Procedures
File the Capital Gains Tax return in triplicate (two copies for the BIR and one copy for
the taxpayer) with the Authorized Agent Bank (AAB) in the Revenue District where the
seller or transferor of stocks is registered. In places where there are no AAB, the return
will be filed directly with the Revenue Collection Officer or Authorized City or Municipal
Treasurer.
Tax Rates
A. For Individual - 15 %
B. For Corporation:
Effective January 1, 1998 to December 31, 2017 (RA No. 8424/NIRC of 1997)
Deadline
For Individual Taxpayers - On or before April 15 of each year covering all stock
transactions of the preceding taxable year
For Corporate Taxpayers - On or before the fifteenth (15) day of the fourth (4th)
month following the close of the taxable year covering all transactions of the
preceding taxable year
[return to index]
OPM-AS-APMD 2017-06-06
OPM-AS-APMD 2017-06-01
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