CGT · NIRC §24(D) & §127 · 2026
Capital Gains Tax Calculator Philippines
Compute capital gains tax on Philippine real property or unlisted shares with the Capital Gains Tax Calculator Philippines.
What Capital Gains Tax Calculator Does?
The Capital Gains Tax Calculator Philippines processes user-provided data to estimate capital gains tax liabilities. Users input details such as the selling price, zonal or fair market value, and asset type. The Capital Gains Tax Calculator Philippines applies the relevant tax rate, compares the selling price with the zonal value, and accounts for any principal residence exemption eligibility.
The Capital Gains Tax Calculator Philippines outputs a line-by-line breakdown that includes the taxable amount, applicable rate, and total capital gains tax due, which helps users prepare for Bureau of Internal Revenue (BIR) filing and payment.
Inputs Capital Gains Tax Calculator Accepts
The Capital Gains Tax Calculator Philippines requires three inputs to compute capital gains tax liabilities: selling price and fair market value (or zonal value), asset type, and principal residence exemption eligibility. The three required inputs are listed below.
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Selling Price and Fair Market Value or Zonal Value: Whichever is higher between the two becomes the tax base.
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Asset Type: Real Property (6%), Unlisted Shares (15%), or Listed Shares (0.6% STT).
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Principal Residence Exemption Eligibility: Real-property sellers may eliminate CGT if proceeds are reinvested in a new home within 18 months.
Each input shapes the applicable tax and produces precise calculations matched to the user's transaction conditions.
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Selling Price and Fair Market Value or Zonal Value (Whichever Is Higher)
The Capital Gains Tax Calculator Philippines requires users to input both the selling price and the fair market value or zonal value of the property. The Capital Gains Tax Calculator Philippines selects the higher of the two values as the tax base, which produces an accurate tax computation based on the government-recognized minimum valuation.
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Asset Type (Real Property, Unlisted Shares, or Listed Shares)
The Capital Gains Tax Calculator Philippines requires users to select the asset type (real property, unlisted shares, or listed shares) because each category is taxed at a different rate under Philippine law. The Capital Gains Tax Calculator Philippines uses the selection to apply the correct capital gains tax rate: 6% for real property, 15% for unlisted domestic shares, or the applicable stock transaction tax for listed shares.
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Principal Residence Exemption Eligibility
The Capital Gains Tax Calculator Philippines includes a field for indicating eligibility for the principal residence exemption. The Principal Residence Exemption Eligibility field lets users specify whether the property sold qualifies as a principal residence and whether the proceeds will be used to acquire a new home within 18 months. When the condition is met, the Capital Gains Tax Calculator Philippines applies the exemption and reduces the capital gains tax liability to zero, provided all statutory requirements are satisfied.
How to Read Capital Gains Tax Calculator Result
The Capital Gains Tax Calculator Philippines result provides a line-by-line breakdown of your tax obligation based on the inputs you provided. The output includes the taxable base, which is the higher of the selling price or zonal value used for calculations. The output also displays the tax rate and shows the applicable statutory rate (6% for real property or 15% for unlisted shares).
The CGT due line indicates the estimated tax payable. When eligible for exemptions, such as the principal residence exemption, the result shows a reduced or zero CGT liability.
Formula
The NIRC §24(D) and §127 Capital Gains Tax Formula
The capital gains tax in the Philippines is calculated by applying the appropriate tax rate to the net capital gain, which equals the higher of the selling price or fair market value minus the cost basis. Under the National Internal Revenue Code (NIRC) Sections 24(D) and 127, the applicable tax rate is 6% for real property and 15% for unlisted domestic shares of stock.
The formula equals: Net Capital Gain (Selling Price or Fair Market Value − Cost Basis) multiplied by the Applicable Tax Rate equals the Capital Gains Tax Due. The NIRC formula preserves compliance with legal guidelines and produces accurate tax computation.
Choosing Higher of Selling Price or Zonal Value
The Capital Gains Tax Calculator Philippines uses the higher of the property's selling price or the zonal value as the tax base for capital gains tax computation. The higher-of-two approach preserves compliance with BIR regulations and prevents under-declaration by using the more accurate value for tax purposes.
When the Principal Residence Exemption Eliminates CGT
The principal residence exemption eliminates capital gains tax when defined conditions are met. When the seller uses the full proceeds from selling the principal residence to acquire or construct a new home within 18 months, the exemption applies.
The principal residence exemption can be used once every 10 years and produces a zero capital gains tax due on the transaction, which substantially benefits the seller.
BIR Form 1706 (Real Property) and 1707 (Unlisted Shares)
BIR Form 1706 is used to report and pay the capital gains tax on the sale of real property classified as a capital asset in the Philippines. The seller, or the person liable for the tax, files BIR Form 1706 within 30 days from the date of sale, exchange, or disposition.
BIR Form 1707 applies to the sale of unlisted domestic shares of stock. Similar to Form 1706, Form 1707 is filed by the seller or an authorized representative. Both BIR Forms 1706 and 1707 are submitted to the Revenue District Office that has jurisdiction over the property location or the seller's residence, and the capital gains tax must be paid within the same 30-day period following the notarization of the Deed of Sale.
Capital Gains Tax Rates by Asset Class
The capital gains tax rates in the Philippines vary based on the asset class. Real property is taxed at 6% of the higher of the selling price or the zonal value. Unlisted domestic shares are subject to a 15% tax on net capital gains. For listed shares traded on the stock exchange, a separate stock transaction tax of 0.6% applies to the gross selling price.
The asset-class-based rates keep different asset classes taxed according to market conditions and asset characteristics.
- Real Property 6% On higher of selling price or zonal value (BIR Form 1706)
- Unlisted Domestic Shares 15% On net capital gain (BIR Form 1707)
- Listed Shares 0.6% Stock Transaction Tax on gross selling price (withheld at exchange)
When the seller is a VAT-registered real estate dealer, the sale also carries 12% VAT separate from CGT. For that VAT computation, use our VAT Calculator with the 12% rate.
How to Compute Capital Gains Tax on Real Property Sale in the Philippines
To compute the capital gains tax on a real property sale in the Philippines, follow the three steps below.
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Determine the Tax Base
Identify the highest value among the selling price, the BIR zonal value, or the fair market value of the property. The highest value preserves compliance with tax regulations, since the tax base is the foundation for the calculation.
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Apply the Tax Rate
Multiply the higher value by 6% to calculate the capital gains tax. The 6% rate is mandated under Section 24(D) of the National Internal Revenue Code (NIRC), as amended by Republic Act No. 10963 (the TRAIN Law).
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File and Pay the Tax
Complete BIR Form 1706 and remit the computed tax within 30 days from the notarization of the Deed of Absolute Sale. Timely filing matters for avoiding penalties and preserving legal compliance.
Following the three steps produces an accurate calculation and timely payment of capital gains tax on real property sales in the Philippines.
CGT applies as a final tax separate from regular income tax. To plan the full annual income tax picture alongside any capital gains, head to our Tax Calculator Philippines.
How to Compute Capital Gains Tax on Unlisted Domestic Shares of Stock
Calculating the capital gains tax on unlisted domestic shares of stock in the Philippines follows three steps. The three steps are listed below.
1. Determine the Selling Price or Fair Market Value
Identify the gross selling price of the shares or the fair market value, whichever is higher. The higher-of-two approach produces accurate tax calculations based on the larger amount.
2. Apply the 15% Capital Gains Tax Rate
Multiply the higher of the selling price or fair market value by the capital gains tax rate of 15%. The 15% rate is mandated under Section 24(C) of the National Internal Revenue Code (NIRC), as amended.
3. Report and Pay the Tax
The resulting figure represents the capital gains tax due on the transaction. The capital gains tax must be reported and paid within thirty days from the date of sale using BIR Form 1707, filed with the appropriate Revenue District Office.
The three-step process preserves compliance with Philippine tax regulations and helps sellers fulfill tax obligations on unlisted domestic shares accurately.
When Does the Principal Residence Exemption Eliminate CGT?
The principal residence exemption eliminates capital gains tax (CGT) when the seller uses the full sale proceeds to acquire or construct a new principal residence within 18 months of the sale. The principal residence exemption can be claimed once every 10 years.
When applicable, the principal residence exemption reduces the seller's CGT liability to zero, although other taxes such as Documentary Stamp Tax still apply.
Property inherited from deceased relatives goes through a separate estate tax process before any subsequent sale-related CGT applies. For the inheritance computation under TRAIN Law, see our Estate Tax Calculator.
How to File BIR Form 1706 for Real Property CGT
BIR Form 1706 is the official document used to report and pay capital gains tax on the sale of real property in the Philippines. The seller of the property files BIR Form 1706 within thirty days from the date of the notarized Deed of Sale.
Required documents accompanying BIR Form 1706 include the notarized Deed of Sale, Transfer Certificate of Title, and latest tax declaration. BIR Form 1706 supports proper tax remittance to the Bureau of Internal Revenue and reflects the transaction details and tax liabilities accurately.
How Much Capital Gains Tax Should Filipino Sellers Pay?
Filipino sellers of real property pay a capital gains tax of 6% on the higher of the selling price, fair market value, or zonal value. For unlisted domestic shares, the tax rate is 15% on net capital gains.
The principal residence exemption can eliminate the capital gains tax when proceeds are reinvested in a new home within 18 months, but the exemption is available only once every 10 years.
What Is Philippine Capital Gains Tax (CGT)?
Philippine Capital Gains Tax (CGT) is a tax levied on the gains from the sale or transfer of certain capital assets, such as real property and shares of stock not traded on the exchange, within the Philippines. Philippine CGT is calculated based on the gross selling price or the fair market value of the asset, whichever is higher.
Philippine CGT simplifies the taxation process by applying a fixed rate to the presumed gains from the transactions, as stipulated under the National Internal Revenue Code (NIRC).
How Philippine Capital Gains Tax (CGT) Differs From Stock Transaction Tax on Listed Shares
Philippine Capital Gains Tax (CGT) and Stock Transaction Tax on listed shares differ in application and calculation. CGT applies to the sale of unlisted domestic shares at a flat rate of 15%. Stock Transaction Tax applies to listed shares sold through the stock exchange at a rate of 0.6% of the gross selling price.
The collection mechanisms also differ: CGT requires the seller to file BIR Form 1707 within 30 days of the sale, while the Stock Transaction Tax is withheld by stockbrokers at the point of sale. The CGT-versus-Stock-Transaction-Tax distinctions highlight differences in tax base, rate structure, and administrative processes.
Shares transferred as gifts instead of sold fall under donor's tax rather than CGT. For gift computations under TRAIN Law, see our Donor's Tax Calculator.
How Does Philippine Capital Gains Tax (CGT) Work?
Philippine Capital Gains Tax functions as a final withholding tax collected by the Bureau of Internal Revenue (BIR). The seller, responsible for remitting the tax, computes the amount based on the higher of the actual selling price or the BIR zonal value. The CGT must be paid within 30 days from the notarization of the sale document.
The seller files the appropriate BIR form (Form 1706 for real property or Form 1707 for unlisted shares) and submits payment to an authorized agent bank or Revenue District Office. The CGT must be settled before the Certificate Authorizing Registration (CAR) or Certificate of Tax Clearance is issued, which lets the buyer transfer the title at the Registry of Deeds. The CGT system secures tax collection before legal ownership transfer and preserves adherence to tax obligations.
What is the importance of Philippine Capital Gains Tax (CGT)?
Philippine Capital Gains Tax (CGT) matters for government revenue generation and equitable wealth distribution. Philippine CGT keeps profits from property and share sales fairly taxed and contributes to public funds.
Compliance with CGT requirements prevents penalties and legal issues and protects the legitimacy of property transactions. Proper payment of CGT matters for the transfer of real property titles and the recording of share transfers, which supports smooth and lawful asset transactions.
What Are the Types of Philippine Capital Gains Tax (CGT)?
Philippine Capital Gains Tax (CGT) is categorized by the type of asset involved in the transaction. The two main types are capital gains tax on real property and capital gains tax on unlisted domestic shares of stock. Each type is governed by distinct provisions of the National Internal Revenue Code (NIRC) and has defined tax rates and exemptions. The two CGT types are described in the subsections below.
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Capital Gains Tax on Real Property (6%)
The capital gains tax on real property in the Philippines is a 6% tax applied to the sale of real estate. The Capital Gains Tax Calculator Philippines uses the higher of the selling price, fair market value, or zonal value to determine the taxable amount. The higher-of-three approach keeps the tax base aligned with the more accurate valuation, which prevents under-declaration. The Capital Gains Tax Calculator Philippines applies the 6% rate unless a principal residence exemption applies, which can reduce or eliminate the tax liability.
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Capital Gains Tax on Unlisted Domestic Shares of Stock (15%)
The capital gains tax on unlisted domestic shares of stock is calculated using a flat rate of 15%. The 15% tax applies to the gross selling price or the fair market value of the shares, whichever is higher. The Capital Gains Tax Calculator Philippines uses the higher-of-two figure to determine the taxable amount and computes the capital gains tax accordingly.
Who Pays or Needs Philippine Capital Gains Tax (CGT)?
Philippine Capital Gains Tax (CGT) is the responsibility of sellers of capital assets. Individuals or corporations selling real property classified as capital assets pay a 6% CGT on the higher of the selling price or BIR zonal value. A homeowner in Quezon City selling a residential lot remits the 6% CGT.
For unlisted domestic shares of stock, the seller is liable for a 15% CGT on the net capital gain. Philippine CGT applies to shareholders selling shares in a closely held Philippine corporation. The responsibility for filing and remitting the tax falls on the seller, who must complete the process within 30 days of the notarized sale.
How BIR Enforces Philippine Capital Gains Tax Compliance
The Bureau of Internal Revenue (BIR) enforces capital gains tax compliance through several mechanisms. Post-transaction audits are conducted when declared selling prices fall substantially below the BIR's zonal values. Non-compliance, such as failing to file within the 30-day period or submitting incomplete documents, triggers BIR audits.
Penalties for non-compliance include a 25% surcharge on unpaid taxes, 12% annual interest, and compromise penalties based on negligence. Taxpayers must provide notarized Deeds of Sale, Transfer Certificates of Title, tax declarations, tax clearances, valid IDs, and complete payment proofs to substantiate transactions and avoid common pitfalls such as under-declaration or late filing.
Foreign corporations selling Philippine real property face additional remittance considerations under NIRC §28(A)(5). For the related branch profit remittance tax, see our Branch Profit Remittance Tax Calculator.
How do you calculate capital gains tax in the Philippines?
To calculate capital gains tax in the Philippines, first determine the tax base by selecting the higher value between the selling price and the BIR zonal value or fair market value. For real property, apply a 6% tax rate; unlisted domestic shares require a 15% rate. Multiply the chosen value by the applicable rate to find the capital gains tax owed.
When the property sold is a principal residence and the seller meets defined conditions, the tax may be waived entirely. The tax payment must be completed within 30 days from the notarization date of the sale document.
How much capital gains tax will I pay on property?
In the Philippines, the capital gains tax on real property is calculated at 6% of the selling price or the Bureau of Internal Revenue (BIR) zonal value, whichever is higher. For a property selling at ₱5,000,000 with a zonal value of ₱4,500,000, the capital gains tax equals ₱300,000, which is 6% of the selling price.
The capital gains tax is the responsibility of the seller, and the amount paid can be shaped by factors such as the property's selling price, the zonal valuation, and eligibility for the principal residence exemption, which can eliminate the tax when defined conditions are met.