The Importance and the Process for Transfer of Tax Declaration to New Owner’s Name

Best Homes Pro Sold Banner

Many overlook the importance of the TAX DECLARATION. This should be in your Name and should be processed as soon as you get hold of your Transfer Certificate of Title or Condominium Certificate of Title.

The Manila Times January 2, 2019 posted the importance of the declaration as follows:

“The Supreme Court gave an enlightening explanation in the case of Cequeṅa and Lirio vs. Bolante (GR 137944, April 6, 2000), regarding possession. Chief Justice Artemio Panganiban stated:

“Tax receipts and Declarations are prima facie proofs of ownership or possession of the property for which such taxes have been paid. Coupled with proof of actual possession of the property, they may become the basis of a claim for ownership.” (Source: The Manila Times, 2019)

For property buyers / investors, make sure the Tax Declaration even in the name of the previous owner is in order before going into a sale transaction. Then immediately process the transfer in your name.

The Tax Declaration is used as basis for the computation of various taxes and fees such as for Capital Gains Tax, Creditable or Expanded Withholding Tax, Estate Tax, etc. This is a mandatory document for submission to the BIR and some government agencies. They may not allow you to pay a certain taxes without complying with this requirement which may then cost you more for penalties and surcharges when you pay beyond a tax payment due date.

Below is the Process for Transferring Tax Declaration to New Owner’s Name:

  1. Get “Tax Declaration Transfer” request form at the Assessor’s Office.
  2. Get list of requirements.
  3. Pay Fees. Get official receipt and photocopy.
  4. Submit the photocopy of the Official Receipt together with properly filled-up request form and complete set of requirements
  5. Get Claim Stub with date to pick up new Tax Dec. If no claim stub, ask date to claim and confirm if Official Recipt is sufficent to present in claiming your Tax Dec.
  6. Where applicable, leave your contact information and get schedule of Assessor to visit property.

Common Requirements- but may vary per Municipality:

  1. CERTIFIED TRUE COPY OF TRANSFER CERTIFICATE OF TITLE (TCT) to be obtained from Registry of Deeds
  2. CERTIFIED TRUE COPY OF CANCELLED TITLE to be obtained from Registry of Deeds. Required in some Municipalities.
  3. DEED OF ABSOLUTE SALE (DOAS) stamped as received by the BIR (Photocopy)
  4. UPDATED REAL PROPERTY TAX RECEIPT (Photocopy) and TAX CLEARANCE issued by Local Treasurer’s Office.
  5. (LOCAL) TRANSFER TAX RECEIPT (Photocopy) or CERTIFICATION OF TRANSFER TAX.
  6. BIR-CERTIFICATE AUTHORIZING REGISTRATION (CAR) (Photocopy) or CERTIFIED TRUE COPY of CAR as may be required by some LGUs.
  7. UPDATED VALID ID OF THE REGISTERED OWNER stated in TCT (Photocopy)
  8. TAX DECLARATION – LAND in the name of previous owner (Photocopy)
  9. TAX DECLARATION – BUILDING/IMPVT in the name of previous owner, if applicable (Photocopy) or CERTIFICATE OF NO IMPROVEMENT issued by ASSESSOR’s OFFICE
  10. RECENT and COLORED PHOTO OF THE PROPERTY (EXTERIOR – with street view and INTERIOR)
  11. SUBDIVISION PLAN (For subdivided lots only)
  12. SPECIAL POWER OF ATTORNEY, If the person who will process the transfer of the land title is the authorized representative of the registered owner appearing in TCT.

Reminders/Notes:

  1. Safekeep and secure all ORIGINAL DOCUMENTS such as your Title, DOAS,BIR-CAR, Official Receipts! Present Original copies for validation purposes only.
  2. Submit clear photos. Other Assessors will rely on the Photos so there is no need to visit and inspect the property for updated assessment and valuation.
  3. Assessors have a turn-around time to deliver the Tax Declaration in New Owner’s Name. Inquire date to claim Tax Dec if no claim stub or not indicated on claim stub.
  4. Some municipalities have a deadline to transfer Tax Declaration from date of release of TCT in Buyer’s Name, and if not met may charge “late payment” fees.

For any questions on Title and Tax Declaration Transfer, please email besthomespro@gmail.com.

/ Find your dream home now!