How to Transfer Tax Declaration in the Philippines

People often forget about transferring a tax declaration—until they suddenly need to do it. This document matters a lot when you buy or sell property, inherit land, or change a real estate classification. 

A tax declaration update is necessary to show the local government that you’re the rightful owner.

This guide teaches you how to transfer a tax declaration, allowing you to accomplish everything without the headache.

A tax declaration is a document issued by the Office of the Municipal Assessor that outlines a property’s assessed value for real property taxation purposes. 

Think of it as a record of a property’s market value, and it identifies the person responsible for paying the annual real property taxes. The government uses this document to compute and collect taxes from property owners.

Don’t get overwhelmed by the paperwork. Follow these steps to ensure you complete everything correctly.

First and foremost, you need a legal basis for the transfer, such as the following:

• For a sale, you need a notarized Deed of Absolute Sale. 
• For inheritance, it’s an Extrajudicial Settlement of Estate. 
• For donations, a Deed of Donation is required. 

Without a valid legal document, you can’t proceed with the transfer.

Head to the Bureau of Internal Revenue (BIR) office in the jurisdiction of the property. You must pay two types of taxes: Capital Gains Tax (CGT) and Documentary Stamp Tax (DST). 

You have 30 days from the date of the notarized deed to pay the CGT and five days from the end of the month upon notarization of the deed to pay the DST. After payment, the BIR will issue a Certificate Authorizing Registration (CAR).

With your CAR, go to the City or Municipal Treasurer’s Office to pay the local transfer tax, which is a percentage of the property’s value. It’s a separate tax from the ones you paid at the BIR. Remember to get the official receipt for this payment.

While at the local treasurer’s office, get a Real Property Tax (RPT) clearance to prove that you’ve settled all real property taxes on the property up to the current year. Without it, the assessor’s office will not be able to process your transfer.

Prepare and bring the following to the City or Municipal Assessor’s Office to submit your application for the transfer of tax declaration:

• Deed of Conveyance (Deed of Absolute Sale, Donation, etc.) – from your lawyer
• Certificate Authorizing Registration (CAR) – from the BIR
• Latest Real Property Tax (RPT) Receipt or Tax Clearance – from the local treasurer’s office
• Transfer Tax Receipt – from the local treasurer’s office
• Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) – if the property is titled, from the Registry of Deeds
• Latest Tax Declaration – from the old owner
• Sworn Declaration of True and Fair Market Value of Real Property – if required by the local assessor’s office
• Valid IDs of all parties – your copies.

The assessor’s staff will review your documents for completeness and accuracy.

The assessor’s office may conduct a physical inspection, especially if the property has new improvements or has been reclassified. This step verifies the property’s details and condition to ensure the latest assessment is accurate.

Some local government units charge a small processing or administrative fee for the transfer. Pay this fee and ask for an official receipt.

The assessor’s office will provide you with a claim stub, along with a return date for when you need to claim your new tax declaration, which now bears your name as the owner. Congratulations, you’ve done it!

Transferring a tax declaration may seem like a lengthy and arduous process, but breaking it down into steps makes the process much more manageable. 

All it takes is knowing what documents you need and where to go; you can avoid delays and ensure your property ownership is recorded correctly with the local government. 

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Learn more about the transfer tax declaration in the Philippines with the following questions below:

A tax declaration is a document from the local assessor’s office that states a property’s assessed value and identifies the person or entity responsible for paying real property taxes.

You need it to pay real property tax and prove ownership, especially if the land has no title.

Bring the deed of sale or other legal proof, BIR CAR, transfer tax receipt, tax clearance, and the previous tax declaration.

Visit the City or Municipal Assessor’s Office where the property is located.

Not always. Most LGUs follow similar rules, but some may ask for extra documents or fees. Always check with the local assessor.