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Deed tax is a duty that shall be declared and paid by the purchaser, the Dien holder, the exchanging parties, the donee, the partitioner, or the person who takes possession of the property in case of transactions of real property involving sale, creation of Dien, exchange, bestowal, partition, or acquisition of ownership by virtue of possession.
Levy of Deed Tax
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A.
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Scope of Taxation
Tax shall be collected from the person who gets the ownership in case of transactions of real property involving sale, creation of Dien, exchange, bestowal, partition, or acquisition of ownership by virtue of possession.
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B.
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Taxpayers and Tax Rates
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1.
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Deed tax on a sale: the purchaser is the taxpayer, and the tax rate is 6% of the value of deed.
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2.
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Deed tax on a possession: the possessor is the taxpayer, and the tax rate is 6% of the value of deed.
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3.
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Deed tax on a bestowal: the donee is the taxpayer, and the tax rate is 6% of the value of deed.
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4.
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Deed tax on a creation of Dien: the Dien holder is the taxpayer, and the tax rate is 4% of the value of deed.
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5.
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Deed tax on an exchange: the exchanging parties are the taxpayers, and the tax rate is 2% of the value of deed.
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6.
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Deed tax on a partition: the partitioners are the taxpayers, and the tax rate is 2% of the value of deed.
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C.
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Tax Base
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1.
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Deed tax is calculated by multiplying the value of deed for real property with the tax rate, and therefore, the value of deed is the tax base for deed tax.
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2.
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Value of deed for real property is determined by the standard price as assessed by the local real estate assessment committee. However, for publicly owned property purchased or bid from the court, which is acquired at a transfer price below the assessed standard price, the transfer price shall be used.
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