Revenue Regulations No. 09-2012 dated May 31, 2012

In cases of non-redemption of properties sold during involuntary sales, regardless of the type of proceedings and personality of mortgagees / selling persons or entitles, the following taxes shall become due:

1.       Capital Gains Tax (CGT) if the property sold is a capital asset;

2.       Creditable Withholding Tax (CWT) if the property sold is an ordinary asset;

3.       Value-added Tax (VAT); and

4.       Documentary Stamp Tax (DST)

The buyer shall file the returns and remit the taxes withheld within the following periods:

1.       CGT – within 30 days from the expiration of the applicable statutory redemption;

2.       CWT – within 10 days following the end of the month after the expiration of the applicable statutory redemption period, provided, that for taxes withheld in December, the return shall be filed and the taxes remitted to BIR on or before January 15 of the following year;

3.       VAT – on or before the 20^th or the 25^th day, whichever is applicable,, of the month following the month when the right of redemption prescribes;

4.       DST – within 5 days after the close of the month after the lapse of the applicable statutory redemption period.

The CGT / CWT / VAT and DST shall be based on whichever is higher between the consideration (bid price of the highest bidder) or the fair market value or zonal value as determined in accordance with Section 6(E) of the NIRC.