When acquiring a property in the Philippines, the owners also must be mindful of the tax that is imposed by the government annually. The obligation to pay the Real Property Tax (RPT), according to the Local Government Code of 1991 or Republic Act no. 7160, shall contribute to the revenues of the Local Government Units (LGU).
All properties, including lands, buildings, improvements, and machinery, are subject to RPT. The person who is responsible to update the RPT is the owner or administrator of the property.
The RPT is determined when the RPT rate is multiplied by the assessed value of the property.
The LGUs may impose and collect an annual tax of one percent (1%) on the assessed value of the real property. This fee shall be added to the basic real property tax.
Depending on the taxpayer, the RPT may be paid in full or in quarterly installment. For one-time payers, the RPT must be settled before the thirty-first (31st) of January each year. On the other hand, should the property owner decide to pay in installment, below are the dates to remember.
1st quarter: On or before March 31
2nd quarter: On or before June 30
3rd quarter: On or before September 30
4th quarter: On or before December 31
In the province of Cavite, religious taxpayers are given discounts: 20% discount for advance payment and 10% discount for prompt payment.
A property owner’s failure to pay the RPT on time shall result in penalties. For delayed payments, taxpayers shall pay the interest at the rate of two percent (2%) per month on the unpaid amount to a maximum of seventy-two (72%) percent or thirty-six (36) months.
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