Benefits of Paying Real Property Tax in the Philippines

Why It’s Important to Pay Your Property Taxes Every Year?

Today, let’s explore everything about real property tax (RPT) in the Philippines and why it’s important to settle it annually. Commonly known as amilyar, real property taxes are crucial financial obligations that every property owner must consider paying on time. Local government units use this primary revenue source to fund certain infrastructure projects and community services. Now, what are the benefits of paying RPT for property owners?


Who Should Pay Real Property Tax?

Before anything else, it’s important to understand who is duty-bound to pay property taxes. All Filipino property owners should pay real property tax, including individuals who own residential, agricultural, or commercial real estate. Corporations are also liable to pay real property taxes as well as religious groups, non-profit organizations, and entities unless they are exempted by certain laws.


Importance of Paying Real Property Tax

As part of a property owner’s responsibilities, paying RPT offers several key benefits. From legal compliance to community development, here’s why paying real property taxes is important for Filipino property owners:

• Legal Compliance and Avoidance of Penalties. One straightforward benefit of paying RPT is ensuring legal compliance. Failure to settle property tax obligations on time can lead to penalties, surcharges, and interest. Prolonged non-payment could even result in the LGU placing a lien on the property.
      
• Proof     of Ownership. Although this is not as solid as a land title, your tax declaration also serves as a supporting document that you own the property and are dutifully paying RTP regularly.
      
• Support for LGU Services and Access to Incentives. The property taxes that residents or property owners within a municipality or city pay are used by LGUs to implement projects, including streetlights, roads, and other public services. Many LGUs also offer incentives to those who are up-to-date when it comes to their tax obligations.
      
• Faster Titling or Transferring of Property Title. When you pay your property taxes diligently, it’s easier to process the title transfer. This is particularly important if you have plans on selling your property in the future. With updated tax records, you can sell it anytime without any hassle

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It’s not just your legal obligation to pay your real property tax, but it is also your civic duty. By doing so, you are helping your community to develop essential services that the public will benefit from. More importantly, paying RPT on time will keep you from legal complications and penalties.


Final Thoughts

If you’re planning to sell your property in the future, make sure to keep your tax records updated by paying real property tax on time. This benefits not only your community but also you as a property owner since there are incentives and even discounts offered to regular taxpayers. Whether you’re looking for a modern house in Puerto Princesa, Palawan, or a fully furnished 3BR condo in BGC, Taguig, check out the official REALS Corporation website for our updated property listings.

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