RR No. 9-2012 dated May 31, 2012 Non-Redemption of Properties Sold During Involuntary Sales

RR No. 9-2012 dated May 31, 2012

Non-Redemption of Properties Sold During Involuntary Sales

►  This prescribes the taxability of owner's/mortgagor's failure to redeem his
foreclosed/auctioned off property/ies within the applicable statutory
redemption period.

-     Capital Gains Tax if the property is a capita! asset

-     Creditable Withholding Tax if ordinary asset

-     Value-added Tax and Documentary Stamp Tax shall also be due on both circumstances.

►  Taxes mentioned shall be based on whichever is higher of the consideration
(bid price of the highest bidder) or the fair market value or the zonal value as
determined in accordance with Section 6(E) of the Tax Code.