Capital Gain Tax

by PRIME Radar Team  June 1, 2015


Good Day Prime!!! Since my family is going to move back to my province this October in the northern parts of Luzon, my husband and I are planning to sell our house in QC. Are there any additional payments or taxes that sellers need to pay for selling a certain property?



That's a good question, thank you for asking. Both buyers and sellers have their own obligations. The sellers need to pay the Capital Gains Tax, a tax placed on the "gains and profits" of the owner for selling, exchanging, or any source of "capital assets" from his or her own property/ties. Although there is an exemption from paying this tax: those who use the incomes or returns they acquired from the property they sold for purchasing or building their new residence within 18 months from the date of sale.