1706 Form – Fill Out and Use This PDF

The BIR Form No. 1706 is a crucial document for anyone involved in the onerous transfer of real property classified as a capital asset in the Philippines, whether it be taxable or exempt. It outlines the necessary information and tax calculations for transactions such as sales, exchanges, or dispositions of real property. To ensure compliance with tax obligations and to avoid penalties, it's essential to accurately fill out and submit this form in a timely manner. If you need to complete BIR Form No. 1706, click the button below to get started.

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1706 Form PDF Details

Navigating the complexities of property transactions in the Philippines requires a familiarity with specific bureaucratic processes, including the filing of tax forms pertinent to the sale, exchange, or disposal of real property. One such essential document is the BIR Form No. 1706, officially designated for the Capital Gains Tax Return on the onerous transfer of real property classified as a capital asset, whether taxable or exempt. This form serves as a crucial component in ensuring compliance with the Bureau of Internal Revenue (BIR), detailing the transaction's specifics such as transaction date, seller and buyer information, property description, and the determination of the taxable base. Its comprehensive layout is designed to accommodate different transaction scenarios, whether it's a cash sale, installment sale, or a foreclosure sale, and includes provisions for those looking to avail of tax relief under specific conditions, such as the reinvestment of proceeds into a new principal residence within 18 months. The form is equally applicable to individuals and corporations, highlighting the government's effort to streamline tax obligations for property transactions. By meticulously filling out and submitting this form, taxpayers ensure that their real estate dealings are properly documented and taxed, thereby contributing to the country’s fiscal health while avoiding potential penalties associated with non-compliance. Understanding the procedural requirements, including when and where to file, can significantly ease the process, making it less daunting for individuals navigating through their tax obligations.

Question	Answer
Form Name	1706 Form
Form Length	2 pages
Fillable?	No
Fillable fields	0
Avg. time to fill out	30 sec
Other names	1706 bir form 2018, 1706 bir form, bir form 1706 january 2018 encs, bir form 1706

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(To be filled up by the BIR)

DLN:

Republika ng Pilipinas

Kagawaran ng Pananalapi

Kawanihan ng Rentas Internas

	Capital Gains	BIR Form No.
	Capital Gains	1706
	Tax Return	1706

For Onerous Transfer of Real Property Classified as	July, 1999 (ENCS )
For Onerous Transfer of Real Property Classified as
Capital Asset (both Taxable and Exempt)

Fill in all applicable spaces. Mark all appropriate boxes with an “X”.

Date of Transaction

2 Amended Return?

3 No. of

Sheets Attached

4 A T C

I I 4 2 0

Individual

(MM/DD/YYYY)

Yes

I C 4 2 0

Corporation

Part I

B a c k g r o u n d

I n f o r m a t i o n

TIN

6 RDO

7 TIN

8 RDO

Seller

Code

Buyer

Code

Seller's Name (et al)

10 Buyer's Name (et al)

11Seller's Registered Address

12 Buyer's Registered Address

Seller's Residence Address (For Individual)

Location of Property

15Classification of Property

Residential

Commercial

Condominium Residential

Agricultural

Industrial

Condominium Commercial

Others (specify)

Brief Description of

the Property

Area sold (sq.m.)

Tax Declaration No.

TCT/OCT/CCT No.

Others

Is the property being sold your principal residence? (For Individual sellers only)

Yes

Do you intend to construct or acquire a new principal residence within 18 months from the date of disposition/sale?

(For Individuals)

Yes

Does the selling price cover more than one property?

Are you availing of tax relief under an International Tax Treaty or Special Law ?

Yes

If yes, specify

Description of Transaction (Mark one box only)

For Installment Sale:

Cash Sale

Installment Sale

Selling Price

Exempt

Foreclosure Sale

Cost and Expenses

Others

Mortgage Assumed

25 Total Payments (Collection) During the Initial Year

If Exempt, or others, specify

Amount of Periodic Payment (Collection)

No. of Installments

28 Date

of Installment

in the Contract

(MM/DD/YYYY)

Fair Market Value (FMV) - Valuation at the time of Contract

29A

FMV of Land per latest Tax Declaration

29C

FMV of Land as determined by

BIR Commissioner (zonal value)

29B

FMV of Improvements per latest

29D

FMV of Improvements as

Tax Declaration

determined by BIR Commissioner (BIR Rules)

Determination of Taxable Base

30A

Gross Selling Price

30B

Bid Price (For Foreclosure Sale)

30C

Fair Market Value of Land and

30D

Taxable Installment Collected

Improvement (Sum of 29A & 29B/29C & 29D/29A & 29D/29B & 29C, whichever is higher)

(For Installment Sale Excluding Interest)

30E

On the Unutilized Portion of Sales Proceeds

30F

Others (specify)

(in case nos. 17 & 18 are applicable)

COMPUTATION

(see Schedule 1 at the back)

Part II

C o m p u t a t i o n o f

T a x

Taxable Base (Item 30A or 30C, whichever is higher, for cash sale, or item 30B, or item 30D,

or Item 30E, or Item 30F, whichever is applicable)

6% Tax Due

Less: Tax Paid in Return Previously Filed, if this is an Amended Return

Tax Payable/(Overpayment)

Add: Penalties

Surcharge

Interest

Compromise

35A

35B

35C

35D

Total Amount Payable/(Overpayment)(Sum of Items 34 & 35D)

If Overpayment , mark one box only:

To be Refunded

To be Issued a Tax Credit Certificate

I declare, under the penalties of perjury, that this return has been made in good faith, verified by me, and to the best of my knowledge and belief,

is true and correct, pursuant to the provisions of the National Internal Revenue Code, as amended, and the regulations issued under authority thereof.

Taxpayer/Authorized Agent Signature over Printed Name

Title/Position of Signatory

Part III

D e t a i l s

of P a y m e n t

Stamp of Receiving

Drawee Bank/

Date

Office and Date of

Particulars

Agency

Number

YYYY

Amount

Receipt

Cash/Bank

Debit Memo

Check

40A

40B

40C

40D

Tax Debit

41A

41B

41C

Memo

42A

42B

42C

42D

Others

Machine Validation/Revenue Official Receipt Details (If not filed with the bank)

Schedule 1	Computation of Tax Base on the Unutilized Portion of Sales Proceeds (if box nos. 17 and 18 are applicable)

BIR FORM 1706 - CAPITAL GAINS TAX RETURN

(For Onerous Transfer of Real Property Classified as Capital Asset - both Taxable and Exempt)

Guidelines and Instructions

Who shall file:

This return shall be filed in triplicate copies by all persons (natural or juridical) whether resident or non-resident, including Estates and Trusts, who sell, exchange, or dispose of a real property located in the Philippines classified as capital asset as defined under Sec. 39 (A) (1) of RA No. 8424. The term "sale" includes pacto de retro sale and other forms of conditional sales. The transaction may be taxable or exempt.

When and Where to File:

The return shall be filed by the seller with any Authorized Agent Bank (AAB) of the Revenue District Office (RDO) having jurisdiction over the place where the property being transferred is located.

In places where there are no AABs, the return shall be filed with the Revenue Collection Officer or duly Authorized City or Municipal Treasurer of the Revenue District Office having jurisdiction over the place where the property being transferred is located.

The return shall be filed within thirty (30) days following each sale, exchange or disposition of real property.

In case of installment sale where the taxpayer is allowed to pay the tax by installment under certain conditions and requirements, the return shall be filed within thirty (30) days following the receipt of the first down payment or following each subsequent installment payment, whichever is applicable.

One return shall be filed for every real property sold, exchanged or disposed of (for cash sale, or foreclosure sale), or every installment payment made (for installment sale).

When and Where to Pay

The total amount payable shall be paid to the Authorized Agent Bank (AAB) where the return is filed. In places where there are no AABs, payments shall be made directly to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer who shall issue Revenue Official Receipt (BIR Form No. 2524) therefor.

For payments in AABs, the lower portion of the return must be properly machine-validated and stamped by the Authorized Agent Bank to serve as the receipt of payment. The machine validation shall reflect the date of payment, amount paid and transaction code, and the stamp mark shall show the name of the bank, branch code, teller’s name and teller’s initial. The AAB shall also issue an Official Receipt or bank debit advice or credit document, whichever is applicable, as additional proof of payment.

Tax Base/Rate:

There shall be imposed a final tax rate of six percent (6%) based on whichever is higher of the following:

1)The fair market value as determined by the Commissioner (zonal value);

2)The fair market value as shown in the Schedule of Values o f the Provincial and City Assessors; or

3)The selling price of the property or fair market value of the property received in an exchange transaction.

Capital gains presumed to have been realized from the sale or disposition of their principal residence by natural persons, the proceeds of which is fully utilized in acquiring or constructing a new principal residence within eighteen (18) calendar months from the date of sale or disposition , shall be exempt from payment of the capital gains tax: Provided, That the historical cost or adjusted basis of the real property sold or disposed shall be carried over to the new principal residence built or acquired: Provided, further, that the Commissioner shall have been duly notified by the taxpayer within thirty (30) days from the date of sale or disposition through a prescribed return (Form 1706) and "Sworn Declaration of Intent", as prescribed in Revenue Regulations No. 13-99, of his intention to avail of the tax exemption herein mentioned: Provided, still further, That the said tax exemption can only be availed of once every ten (10) years: Provided, finally, that if there is no full utilization of the proceeds of sale or disposition, the portion of the gain presumed to have been realized from the sale or disposition shall be subject to capital gains tax. For this purpose, the gross selling price or fair market value at the time of sale, whichever is higher, shall be multiplied by a fraction which the unutilized amount bears to the gross selling price in order to determine the taxable portion and the tax due .

If the seller fails to utilize the proceeds of sale or disposition in full or in part within the 18-month reglementary period, his right of exemption from the capital gains tax did not arise to the extent of the unutilized amount, in

which event, the tax due thereon shall immediately become due and demandable on the 31st day after the date of the sale, exchange or disposition of principal residence. As such, he shall file his capital gains tax return covering the sale , exchange or disposition of his principal residence and pay the deficiency capital gains tax inclusive of the twenty five percent (25%) surcharge for late payment of the tax plus twenty percent (20%) delinquency interest per annum incident to such late payment computed on the basis of the basic tax assessed. The interest shall be imposed from the thirty-first (31st) day after the date of sale of principal residence until the date of payment, provided, that the date of sale shall mean the date of notarization of the document of sale, exchange, or disposition of principal residence.

Penalties:

There shall be imposed and collected as part of the tax:

1.A surcharge of twenty five percent (25%) for each of the following violations:

a. Failure to file any return and pay the

amount of tax or installment due on or before the due dates;

b.Unless otherwise authorized by the Commissioner, filing a return with a person or office other than those with whom it is required to be filed;

c.Failure to pay the full or part of the amount of tax shown on the return, or the full amount of tax due for which no return is required to be filed on or before the due date;

d.Failure to pay the deficiency tax within the time prescribed for its payment in the Notice of Assessment.

2.A surcharge of fifty percent (50%) of the tax or of the deficiency tax, in case any payment has been made on the basis of such return before discovery of the falsity or fraud, for each of the following violations:

a.Willful neglect to file the return within the period prescribed by the Code or by rules and regulations; or

b.In case a false or fraudulent return is willfully made.

3. Interest at the rate of twenty percent (20%) per annum, or such higher rate as may be prescribed by rules and regulations, on any unpaid amount of tax, from the date prescribed for payment until the amount is fully paid.

4.Compromise penalty.

Attachments Required:

1.Copy of the Notarized Deed of Sale or Exchange;

2.Photocopy of the Transfer Certificate of Title (TCT), Original Certificate of Title (OCT), or Condominium Certificate of Title (CCT);

3.Certified True Copy of the latest tax declaration on lot and/or improvement;

4.If what is sold is lot only, a certification from the Assessor’s Office that there is no existing improvement on the property or that the improvement is in the name of another;

5.Copy of BIR Ruling for tax exemption confirmed by the BIR, if applicable;

6.Duly approved Tax Debit Memo, if applicable;

7.For amended return, proof of tax payment and the previously filed return.

8."Sworn Declaration of Intent" as prescribed in Revenue Regulations 13- 99, if the transaction is tax-exempt because the taxpayer falls under boxes 17 & 18. (See Form 1706)

These requirements must be submitted upon field or office audit of the tax case before the Tax Clearance Certificate/Certificate Authorizing Registration can be released to the taxpayer.

Note: All Background information must be properly filled up.

§Box No. 1 refers to the transaction period and not the date of filing the return.

§TIN = Taxpayer Identification Number.

§The last 3 digits of the 12-digit TIN refers to the branch code.

§Onerous transfer means transfer for value.

§If box Nos. 17 and 18 are applicable, taxpayer should file an amended return (Amended Form 1706) if the sales proceeds are not fully utilized to acquire or construct new principal residence. However, if an Assessment Notice has already been issued, taxpayer should use Form No. 0605.

ENCS

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Simple tips to fill in 1706 bir form 2018 stage 1

2. Just after filling in the last step, go to the next part and enter the necessary particulars in all these blank fields - If Exempt or others specify, Total Payments Collection During, Amount of Periodic Payment, No of Installments, Date of Installment, in the Contract, MMDDYYYY, Fair Market Value FMV Valuation, FMV of Land per latest Tax, FMV of Improvements per latest Tax, Determination of Taxable Base, Part II, Gross Selling Price, Fair Market Value of Land and, and On the Unutilized Portion of Sales.

Total Payments Collection During, Amount of Periodic Payment, and On the Unutilized Portion of Sales inside 1706 bir form 2018

You can potentially make a mistake when filling out the Total Payments Collection During, for that reason make sure you go through it again before you decide to submit it.

3. The third step is generally easy - fill out all of the fields in Total Amount, If Overpayment mark one box only, To be Issued a Tax Credit, To be Refunded, TaxpayerAuthorized Agent Signature, TitlePosition of Signatory, Part III, Particulars CashBank Debit Memo A, Tax Debit, Memo Others, Drawee Bank Agency, D e t a i l s of P a y m e n t, Date, Number, and MM DD YYYY in order to complete the current step.

1706 bir form 2018 conclusion process described (portion 3)

4. Your next part will require your details in the following areas: Schedule , Computation of Tax Base on the, For Onerous Transfer of Real, BIR FORM CAPITAL GAINS TAX RETURN, Guidelines and Instructions, Who shall file, This return shall be filed in, When and Where to File, The return shall be filed by the, In places where there are no AABs, The return shall be filed within, exchange or disposition of real, In case of installment sale where, which event the tax due thereon, and Penalties There shall be imposed. Always give all required info to go onward.

Ways to fill out 1706 bir form 2018 step 4

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