Using Tax Declaration in the Philippines

21 November 2023

Mazars shares a short guide to using and acquiring a Tax Declaration in the Philippines.

Owning property is among the most critical steps in establishing a business in the Philippines. Owning your base of operations will give your brand much-needed prestige; it may even attract attention from both customers and potential business partners. As such, as a business owner, it is imperative that you have a particular claim of title over your property that can be a basis for inferring possession. 

Tax declaration is a property record document that provides this claim. It is a formal assessment document used by provincial, city or municipal assessors to show the market and assessed property values as the basis for collecting real property tax. 

The document also presents the value of the real property, be it for land or the machinery/equipment used, for purposes of Real Property Tax, assessed against the owner/taxable person or entity, as authorised under the Local Government Code (RA (Republic Act) 7160). 

Uses of Tax Declaration 

Tax declarations and receipts are defined as “prima facie proofs of ownership or possession of the property for which such taxes have been paid.” It can be used as a basis for a claim of ownership if accompanied by actual proof of possession of the property. 

However, it is not advisable to purchase land only using a tax declaration since they are no conclusive evidence for ownership. It can lead to buying property from individuals not legally entitled to it. 

Requirements for Tax Declaration 

Business owners need to complete specific requirements before receiving a tax declaration form. The basic requirements are the following:  

  • Request for Issuance of Updated Tax Declaration form. 
  • Title (Certified True Xerox Copy) 
  • Deed of Sale/ Extra Judicial Settlement/ Partition Agreement. 
  • Updated Real Property Tax Payment (Amilyar) 
  • Latest Tax Declaration (TD/OHA) 
  • Transfer Tax Receipt. 
  • Certificate Authorizing Registration (CAR) from BIR (Bureau of Internal Revenue). 

There are also other requirements needed, among these include submitting at least one (1) copy of the following:  

1.) Transfer of ownership 

  • Transfer Certificate of Title 
  • Latest Realty Tax Receipt or Tax Clearance 
  • Certified True Copy of Certificate Authorizing Registration (CAR) 
  • Transfer Tax Receipt or Certification 
  • Deed of Conveyance (Deed of Sale, Donation, Waiver of Rights, Sheriff’s Sale, Extrajudicial Settlement of Estate, etc.) 

2.) New Declaration of building and machinery  

  • Initial Tax Declaration from Municipal Assessor’s Office (MAO) 
  • Sworn Statement duly prepared and signed by the Owner 
  • Field Appraisal and Assessment Sheet (FAAS) 
  • Bill of Materials and Occupancy Permit (for Building) 
  • Receipt of Purchase or any proof showing Acquisition Cost (for Machinery) 

3.) Correction (Spelling of Name, Property Identification No, Barangay, Area, etc.)  

  • Transfer Certificate of Title 
  • Latest Realty Tax Receipt or Tax Clearance 

Afterwards, all submitted documents will be processed by the municipal assessor within three (3) working days. You can also request a maximum of 10 tax declarations from the regional office where they initially submitted their requirements.