Checking financial capacity in transfers of properties

 Economy
Jun 202016
 

Most, if not all, individuals and corporate entities alike, have had some experience buying, selling, exchanging, transferring, inheriting or donating real and/or personal property/ies. We are well aware that such transfers of properties are subject to applicable income/capital gains taxes (based either on the selling price or fair market value of the properties transferred or gain realized on the transfer) as well as documentary stamp tax (DST) in the case of transfers of real properties and shares of stock not traded in the stock exchange. In the case of transfers of real or personal properties that are held for sale or lease or are used in the business, the same are also subject to value-added tax (VAT). In addition to these national taxes, the sale or exchange of real properties is subject to applicable transfer taxes payable to the concerned local government unit.

Bearing the burden of DST

 Economy
Feb 242016
 

Documentary stamp tax (DST) is one of the most overlooked taxes because normally this is just a small percentage of a transaction unless the amount involved is quite significant. DST is imposed on the privilege of entering into certain transactions through the execution of specific instruments or documents, such as the sale or lease of land, issuance or transfer of shares of stock, loans or other forms of indebtedness, and insurance premiums, among others.