Capital Gain Tax

by PRIME Radar Team  June 1, 2015

Question: 

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?

 

Answer: 

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.

 

Tags