When you buy a piece of real property, one of the taxes to be paid in the Bureau of Internal Revenue is the Documentary Stamp Tax or DST.
You may ask, how much is it?
Well, it is 1.5% of the higher among the following:
1) Contract price (Gross)
2) The Fair Market Value (FMV) as shown in the Tax Declaration of both the land and the building or
3) The Zonal Value
If you want to determine the Zonal Value, you can easily access this in the BIR Website.
Once you have paid the DST, you need to file the DST Return within 5 days after the close of the month when the sale was executed or notarized.
For the DST Return, simply look for BIR Form No. 2000.
The DST Return is to be filed in the Authorized Agent Bank of the Revenue District Office of the BIR where the real property sold is located.
Category: Taxation
Documentary Stamp Tax in Buying Real Property