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1606 Withholding Tax Remittance Return (For Transactions Involving Real Property other than Capital Asset including Taxable and Exempt)

This BIR return is filed by every Withholding Agent/ Buyer on the sale, transfer or exchange of real property classified as ordinary asset.

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Withholding Tax
Remittance Return

Republika ng Pilipinas
Kagawaran ng Pananalapi

1606
July 1999 (ENCS)

For Onerous Transfer of Real Property Other
than Capital Asset (Including Taxable and Exempt)

Fill in all applicable spaces. Mark all appropriate boxes with an “X”.
Date of Transaction
3 No. of Sheets Attached
1
2 Amended Return?
Yes
( MM / DD / YYYY )
No
Part I
Background Information
5

TIN
Buyer
9 Buyer's Name

6 RDO
Code
(Last , First , Middle Name for Individual)/(Registered Name for Non-Individual)

11

Buyer's Registered Address

13

ATC

15

4

Any Taxes Withheld?
Yes
No

7 TIN
8 RDO
Code
Seller
10 Seller's Name (Last , First , Middle Name for Individual)/(Registered Name for Non-Individual)

Classification of Property

WI 155

12 Seller's Registered Address

Individual

Residential

WC155

Corporation

14 Category of Withholding Agent

Commercial

16
17

Condominium Residential

Industrial

Agricultural
Location of the Property

Others (specify)

Tax Dec. No.

Area Sold (sq.m.)

TCT/OCT/CCT No.

Others

Does the selling price cover

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

more than one property?
20

Government

Condominium Commercial

Brief Description of the Property

18

Private

Yes

Foreclosure Sale
Others

Installment Sale

No

If yes, specify

For Installment Sale:
21 Selling Price

Description of Transaction (Mark one box only)
Cash Sale
Exempt

Yes

No

22
23
24
25

If Exempt, or Others, specify

21

Cost and Other Expenses
Mortgage Assumed
Total Payments during the Initial Year
Amount of Installment this Month

22
23
24
25

26

26 Total No. of Installments in the Contract
27 Fair Market Value (FMV) - Valuation at the time of the Contract
FMV of Land as determined
27A
FMV of Land per latest
27C
Tax Declaration

27B

by BIR Commissioner (zonal value)

FMV of Improvements per latest

27D

Tax Declaration

28 Determination of Taxable Base
28A
Gross Selling Price
28B

FMV of Improvements as
determined by BIR Commissioner (BIR Rules)

28D

Installment Collected (For
Installment Sale excluding interest)

Fair Market Value of Land and
28E

Improvement (Sum of 27A & 27B/
27C & 27D/ 27B & 27C/27A & 27D,
whichever is higher)

Others (Specify)
COMPUTATION

Bid Price (For Foreclosure Sale)

28C

29 Is the seller habitually engaged in real estate business?
Yes
No
Part II
Computation of Tax
30

30
Taxable Base (Item 28A or 28B, whichever is higher, for cash sale, or Item 28C, or 28D, or 28E, whichever is applicable)

31

Tax Rate

32

Tax Required to be Withheld

31
32
33

33
34
35

Less: Tax Paid in Return Previously Filed, if this is an Amended Return
Tax Still Due/(Overremittance)
Add: Penalties
Surcharge
35A

34
Interest
35B

Compromise
35C

35D

36

Total Amount Still Due/(Overremittance) (Sum of Items 34 & 35D)
36
To be issued a Tax Credit Certificate
If overremittance, mark one box only:
To be Refunded
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.
37

38

Stamp of Receiving

Taxpayer/Authorized Agent Signature over Printed Name
Part III
D e t a i l s of P a y m e n t
Drawee Bank/
Date
Particulars
Agency
Number
MM DD
YYYY
39 Cash/Bank
Debit Memo
40B
40C
40 Check 40A

40D

41 Others

41D

41A

41B

41C

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

Title/Position of Signatory
Amount
39

Office and Date of
Receipt

BCS No./Item No.:

Kawanihan ng Rentas Internas

BIR Form No.

BIR Form No. 1606 ENCS - PAGE 2
TAX RATES
TRANSACTION
FOR TRANSACTIONS INVOLVING REAL PROPERTY

TAX RATE
0%

a) Registered with and certified by the Housing and Land Use Regulatory Board (HLURB) or HUDCC as engaged in socialized housing
projects pursuant to RA 7279 & its implementing regulations.
The selling price of the house and lot or only the lot does not exceed P 180,000 in Metro Manila and other highly urbanized area or
P 150,000 in other areas or on the adjusted amount of selling price for Socialized Housing as maybe determined later by the HLURB.

1.5%

b) Not registered with Housing and Land Use Regulatory Board (HLURB) as engaged in Socialized Housing projects under RA 7279;
The seller / transferor is habitually engaged in real estate business;
The selling price thereof is not over P 500,000.

3%

c) Not registered with Housing and Land Use Regulatory Board (HLURB) as engaged in Socialized Housing projects under RA 7279;
The seller / transferor is habitually engaged in real estate business;
The selling price thereof is over P 500,000 but not over P 2,000,000.

5%

d) Not registered with Housing and Land Use Regulatory Board (HLURB) as engaged in Socialized Housing projects under RA 7279;
The seller / transferor is habitually engaged in real estate business;
The selling price thereof is over P 2,000,000.00

7.5%

e) Seller / transferor is not habitually engaged in real estate business.

BIR FORM 1606 -Withholding Tax Remittance Return
[For Onerous Transfer of Real Property Other Than Capital Asset
- Including Taxable and Exempt]
Guidelines and Instructions
Who Shall File
This return shall be filed in triplicate by
every Withholding
Agent/Buyer on the sale, transfer or exchange of real property classified as
ordinary asset. One return should be filed for every property (including
portion of a property) purchased.
The term “Ordinary Asset” shall mean property held by the taxpayer
other than capital asset including stock in trade, or other property of a kind
which would properly be included in the inventory if on hand at the close of
the taxable year, or property held primarily for sale to customers in the
ordinary course of trade or business, or property used in trade or business of a
character which is subject to the allowance for depreciation, or real property
used in trade or business.
When and Where to File
th

The return shall be filed on or before the tenth (10 ) day following the
end of the month in which the transaction occurred. Provided, however, that
taxes withheld in December shall be filed on or before January 25 of the
following year. Provided, that large taxpayers as determined by the
th
Commissioner shall file on or before the 25 day of the following month.
The return shall be filed 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
Authorized Agent Banks (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.
When and Where to Remit
Upon filing of this return, the total amount to be remitted shall be paid
to the Authorized Agent Bank (AAB) where the return is filed. In places
where there are no Authorized Agent Banks (AABs), payment shall be made
directly to Revenue Collection Officer or the duly Authorized City or
Municipal Treasurer who shall issue Revenue Official Receipt (BIR Form No.
2524) therefor.
Where the return is filed with an AAB, 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 code 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.

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 date;
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 the
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 the payment until the
amount is fully paid.
4.
Compromise penalty.
Attachments Required
1.
A copy of Notarized Deed of Sale or Exchange;
2.
Photocopy of the Transfer Certificate of Title (TCT)/ or Original
Certificate of Title (OCT)/ or Condominium Certificate of Title (CCT);
3.
Certified True Copy of the latest Tax Declaration (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 lot being sold/transferred;
5.
Copy of BIR Ruling for tax exemption confirmed by the BIR, if
applicable;
6.
Proof of registration with HLURB or HUDCC, if applicable;
7.
For amended return, proof of tax payment and the previously filed
return.
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 this
return.
§
The last 3 digits of the 12-digit TIN refers to the branch code.
§
TIN = Taxpayer Identification Number.
§
Onerous Transfer means transfer for value.
ENCS

NOTE:
This form may still be used, however, the rates and the due dates
reflected herein has been amended as follows:
Tax Rates:

Due Date:

FROM
e) 7.5%

TO
e) 6%

On or before the 10th day following the end of the
month in which the transaction occurred.

Adopt the aforementioned rates and due date to avoid
imposition of penalty/ties.
 
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