Importance of Having an Updated Tax Declaration in the Philippines

Why Filipinos Should Keep Their Tax Declaration Up to Date

There are many different uses of tax declarations in the Philippines that are all important for property owners and even home buyers. Transferring a property, for instance, will require all taxes paid before the new title can be processed. If you want to know more about why it’s important to keep your tax declaration up to date, read this article and understand the advantages of having it updated every year.

​What Tax Declaration Is Really For?

A tax declaration is essential in property transfers, land improvement records, and real property tax assessments. National agencies and local government offices often use this as a requirement in managing real estate transactions. Here are the main uses of a tax declaration document in the Philippines:

• For property transfers, the tax declaration is required by the local assessor’s office and the Bureau of Internal Revenue to sell, inherit, or donate a property. This requirement is for the     production of Certificate Authorizing Registration or a new land title.
      
  
• When paying real property tax, you will need to present your tax declaration at the municipal or city treasurer’s office. This is a     necessary document every time you pay your amilyar     or other building taxes.
      
  
• As a supporting document to assert ownership over a property. The tax declaration, together with other legal documents, backs up claims of tax payments or property possession.
      
  
• Filing tax declaration for building assessments to declare improvements, renovations, or subdivision as a requirements for market valuation.
  

Can You Buy Land with Tax Declaration Only?

Buying a property in the Philippines with a tax declaration only can be problematic, therefore you must proceed with extra caution. Remember that a tax declaration is not a solid proof of ownership and can be questioned as evidence for possession. However, it’s a formal assessment document that is submitted to municipal, city, or provincial assessors for property value assessments.
If you happen to buy a property with a tax declaration only, do your due diligence and check with the Registry of Deeds regarding the copy of original title. Make sure to talk to a lawyer or real estate professional before signing any agreements during property transfers. Don’t think that a tax declaration is enough proof of ownership. You may also work with a real estate agent to help you with the whole process.

Final Thoughts

Now you know how to properly use a tax declaration document during property transfers or assessments. Do not solely rely on this document, though, when buying a property as it’s not an official proof of ownership or possession. Check with the Registry of Deeds if the property you want to buy has not tax obligations and is indeed owned by the seller. You can send us your questions through our social media accounts or go straight to our website REALS,PH to find exclusive listings of house for sale in Baguio City as well as other properties nationwide.