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When selling a condo

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Davaoeno
22 minutes ago, Aerosick said:

 

My wife has known the buyer for 30+ years. We trust her completely!

And that is always the best situation to be in.

Be careful- the BIR cgt has to be paid within 30 days after the date on the contract. If you miss the deadline the penalty is 25% plus 20% interest per annum. I missed the date once and the 25% penalty was 150000. Luckily I knew the buyer and I just paid the atty to do a new Deed of Sale . ( the BIR personnel actually recommended that I proceed that way)

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Davaoeno
35 minutes ago, SkyMan said:

I didn't think they came after anyone, just increase the fees and therefore a larger and larger lien on the property.

Yes- exactly !

40 minutes ago, Aerosick said:

 

My wife has known the buyer for 30+ years. We trust her completely!

And that is always the best situation to be in.

Be careful- the BIR cgt has to be paid within 30 days after the date on the contract. If you miss the deadline the penalty is 25% plus 20% interest per annum. I missed the date once and the 25% penalty was 150000. Luckily I knew the buyer and I just paid the atty to do a new Deed of Sale . ( the BIR personnel actually recommended that I proceed that way)

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Headshot
On 6/28/2018 at 5:49 PM, Davaoeno said:

It is common practice here to declare a lower amount to the BIR for the tax calculation. The BIR does have its own figure about what the price should be [called zonal value] which is the lowest figure that they will accept.

Is the "zonal value" the same as the assessed value for property tax purposes? If not, how do you find out what the zonal value is?

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Davaoeno
Posted (edited)
39 minutes ago, Headshot said:

Is the "zonal value" the same as the assessed value for property tax purposes? If not, how do you find out what the zonal value is?

The BIR has a book with all the zonal values listed.  They increased them substantially as of May 2017.

My wife bought a condo this year for 2.8M . The BIR had a zonal value listed for that condo project  of 3.2M and that is what she had to pay cgt on .

The only good thing was that BDO appraised it at 4M and offered to lend her 3 M ! lol

I do not know how local governments arrive at assessed values to determine property tax.

Edited by Davaoeno
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Headshot
59 minutes ago, Davaoeno said:

The BIR has a book with all the zonal values listed.  They increased them substantially as of May 2017.

My wife bought a condo this year for 2.8M . The BIR had a zonal value listed for that condo project  of 3.2M and that is what she had to pay cgt on .

So, how do you find out what the zonal value is? Go to BIR and ask? I don't live in a condo, and every house in my neighborhood was custom built. Though it is a subdivision superficially, there was never a so-called development with one contractor building everything.

1 hour ago, Davaoeno said:

I do not know how local governments arrive at assessed values to determine property tax.

I don't think that even the local governments know how they arrive at the assessed value. It's a mystery wrapped in an enigma.

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Davaoeno
Posted (edited)
8 minutes ago, Headshot said:

Go to BIR and ask?

yes

You might try asking a real estate broker . Usually the question only arises when a place has been sold 

Edited by Davaoeno
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Buko Beach
On ‎6‎/‎30‎/‎2018 at 1:16 AM, Headshot said:

So, how do you find out what the zonal value is? Go to BIR and ask? I don't live in a condo, and every house in my neighborhood was custom built. Though it is a subdivision superficially, there was never a so-called development with one contractor building everything.

I don't think that even the local governments know how they arrive at the assessed value. It's a mystery wrapped in an enigma.

 

It's not a mystery. BIR has published an online zonal value for just about every barangay in the Philippines for well over a decade.

Ironically, the one place they have not included is the Spratly Islands, which if Malacanang had a sense of humor, should list the zonal value at 6 Billion php per sq/meter and send the tax bill to Beijing, just for giggles.

https://www.bir.gov.ph/index.php/zonal-values.html

 

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Forex

Does the condo title have to be in a Filipino's name or a corporation?

As I understand, a complex of condominiums have to have 60% ownership by Filipinos, therefore only 40% can be titled to a foreigner. However on re-selling the Filipino tilted condo, it can revert to a foreigner title. Is this correct?

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Davaoeno
15 minutes ago, Forex said:

Does the condo title have to be in a Filipino's name or a corporation?

As I understand, a complex of condominiums have to have 60% ownership by Filipinos, therefore only 40% can be titled to a foreigner. However on re-selling the Filipino tilted condo, it can revert to a foreigner title. Is this correct?

1.  Does the condo title have to be in a Filipino's name or a corporation?    NO

2.   on re-selling the Filipino tilted condo, it can revert to a foreigner title ?    Revert ? I doubt that it was previously owned by a foreigner

I have never heard of a case anywhere in the country where a foreigner was told that he could not own a condo because of the 60/40 rule .  

 

 

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Forex
2 minutes ago, Davaoeno said:

1.  Does the condo title have to be in a Filipino's name or a corporation?    NO

2.   on re-selling the Filipino tilted condo, it can revert to a foreigner title ?    Revert ? I doubt that it was previously owned by a foreigner

I have never heard of a case anywhere in the country where a foreigner was told that he could not own a condo because of the 60/40 rule .  

 

 

OK good advice. Cheers

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