Philippines raises tax thresholds on home sales

The Philippino Bureau of Internal Revenue (BIR) upped its VAT thresholds this week on residential land and property transactions.

The trigger point for the sale of land and houses - and for lease-deals on dwelling units which are exempt from value-added tax (VAT) payments - were both increased at the weekend.

The VAT threshold for residential land has gone up from PP1.5 million to P1,919,500 and from P2.5 million to P3,199,200 for a plot with a house built on it.

According to the new revenue regulations No. 16- 2011, signed by Revenue Commissioner Kim S. Jacinto-Henares, transactions below these new prices are no longer viable for VAT.

Source: OPP.org.uk