Step-by-Step Guide on
compute for the Capital Gains Tax (CGT – BIR
Transferring Title of Properties
1. File and secure the documentary requirements
WHERE: Bureau of Internal Revenue Regional
District Office (BIR RDO)
STEP TO BE TAKEN: Submit the following
documents to the stated government agency
- Original copy of the notarized Deed of Absolute
Sale (DAS), plus two photocopies
- Owner’s duplicate copy of the Transfer
Certificate of Title (TCT) or the Condominium
Certificate of Title (CCT) in case of sale of
condominium units, plus two photocopies or
Certified true copy from Registry of Deeds
- Certified True Copies of the latest Tax
Declaration for land and improvement of the real
property plus two photocopies. If the property
sold is a vacant lot or no improvements have
been made on it, a Sworn Declaration of No
Improvement by at least one of the transferees
or Certificate of No Improvement issued by the
city or municipal assessor
- Tax Identification Numbers (TIN) of the Seller
and Buyer
In some cases, additional requirements may need
to be submitted, including the following:
- Special Power of Attorney (SPA), if the person
signing on the document is not the owner as it
appears on the TCT or CCT
- Location plan or vicinity map if the zonal value
cannot readily be determined from the
documents submitted
- Other requirements as may be required by law,
rulings, regulations, or other issuances
2. Secure assessment of transfer taxes
 WHERE: Bureau of Internal Revenue Regional
District Office and Authorized Agent Bank (AAB)
or Municipal or City Treasurer’s Office
 STEP TO BE TAKEN: Have the BIR representative
Form 1706) or Creditable Withholding tax (CWT-
BIR Form 1606) and Documentary Stamp Tax
(DST – BIR Form 2000), after which three copies
of which are to be signed, and filed at the AAB, or
the Municipal/ City Treasurer’s Office
3. File documents at the BIR for the issuance of
Certificate Authorizing Registration (CAR) or BIR
Clearance
 WHERE: Bureau of Internal Revenue Regional
District Office
 STEP TO BE TAKEN: Claim the Certificate
Authorizing Registration (CAR) at the
abovementioned government office, along with
the following documents to be released:
- Original copy of the Deed of Absolute Sale
stamped as received by the BIR
- Owner’s Duplicate Copy of the TCT or the
CCT or Certified true copy from Registry of Deeds
- Original copies of the BIR Form 1706 (CGT) and
Form 2000 (DST) stamped as received by the BIR
- Copies of the Tax Declaration for land and
improvement
According to BIR Memorandum Order No. 15-03,
BIR RDOs should release CARs for all One Time
Transaction (ONETT) within five days of
submitting all documentary requirements.
4. Pay the Transfer Taxes and secure the Tax
Clearance
WHERE: Local Treasurer’s Office
STEP TO BE TAKEN: Pay the Transfer Tax, and
produce the following documents prior to
issuance of Tax Clearance:
- Original and one photocopy of the Deed of
Absolute Sale
- Photocopy of the Tax Declaration
- Official Receipt of Payment of Real Property Tax
and Special Education Fund Tax for the current
year
 5. File documents for the issuance of new land title
 WHERE: Registry of Deeds
 STEP TO BE TAKEN: Receive the Owner’s
Duplicate copy of the TCT or CCT in your name
after presenting the following documents:
- Original Copy of the Deed of Absolute Sale
stamped as received by the BIR, plus three
photocopies
- Seller’s Owner’s Duplicate Copy of the TCT or
CCT
- Original Copy of the CAR
- Original Copy of the Tax Clearance
- Original Copies of Official Receipts of Payments
of CGT, DST, Tax Clearance Certificate, and
Transfer Fee
Some assessor’s offices require additional
documents. For example, the Makati City
Assessor’s office requires the Subdivision Plan, if
the lot is subdivided, and Full-color photos of the
house, lot, or condominium unit.
The entire process may take several months and
several trips to different government agencies.
This proves to be a very tiring, and time-
consuming process. Moreover, failure to
accomplish these steps may result in penalties
and further legal problems. It is best to
commission the help of a duly-registered and
reliable company who can assist in getting this
done for your convenience and peace of mind.

- Original Copies of the Current Tax Declaration

for land and improvement issued by the local
assessor’s office

- If the seller or buyer is a corporation, Secretary’s

Certificate authorizing the sale of the real
property; and Certified True Copy of the Articles
of Incorporation and By-Laws of the seller or
buyer corporation

6. File documents for the issuance of new Tax

Declaration
 WHERE: Municipal or Provincial Assessor’s Office
 STEP TO BE TAKEN: Ensure that the title has been
transferred to your name prior to securing new
Tax Declaration. Below are the requirements:

- Photocopy of the Deed of Absolute Sale

- Photocopy or a Certified true copy of the TCT or

the CCT (registered in the name of new owner)

- Duplicate (Blue copy) of the CAR

- Photocopy of the Transfer Tax Receipt

- Photocopy of the latest Tax Receipt or Tax

Clearance