How to Compute Documentary Stamp Tax (DST) on Transfer of Real Property

How to compute Documentary Stamp Tax (DST) on transfer of real property in the Philippines? When we sell or buy real property, we execute a contract or deed of absolute sale, where the selling price, parties, details of property and other stipulations are stated. The deed of sale is a document, and it is included by the tax code, regulated by the Bureau of Internal Revenue (BIR), as a document subject to documentary stamp tax. Now if you are selling or buying real property (i.e., land and improvement therein), the following guidelines, steps, procedures and other information in computing DST should help you.

What is a Documentary Stamp Tax?

Documentary Stamp Tax (DST) is a tax on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, right or property incident thereto.


What is the BIR Form used in filing DST?

For filing and payment of DST on sale or transfer of real property, the form to be used is BIR Form No. 2000-OT (Documentary Stamp Tax Return/Declaration for One Time Transactions). One time transactions include transfer of Real Property classified as capital asset, transfer of Real Property classified as ordinary asset, and transfer of shares of stock not traded through the local stock. Please click here to download the Form.


Who are required to file BIR Form 2000-OT?

This return shall be filed in triplicate by the following person making, signing, issuing, accepting or transferring the document or facility evidencing transaction:

1. Every natural or juridical person, resident or non-resident, for sale, barter, exchange or other onerous disposition of shares of stock in a domestic corporation, classified as capital asset , not traded in the local stock exchange;
2. Every withholding agent/buyer/seller on the sale, transfer or exchange of real property classified as capital asset . The “sale” includes pacto de retro sale and other forms of conditional sale; and
3. Every withholding agent/buyer/seller on the sale, transfer or exchange of real property classified as ordinary asset.

Whenever one party to the taxable document enjoys exemption from the tax herein imposed, the other party thereto who is not exempt shall be the one directly liable for the tax.


How to Compute DST on transfer of real property?

In computing the DST on transfer of real property or Deed of Sale and conveyance of real property, the following DST tax rate is used:

1.5% x Selling Price/Consideration or Fair Market Value, whichever is higher

-The 1.5% rate is based on the DST fractional rate of Php15 per P1,000 taxable amount or P15/1,000.
-When the sale is thru mortgage foreclosure sale or when one of the contracting parties is the Government, the tax herein imposed shall be based on the actual consideration.
-In case of sale of real property paid under installment payment or deferred payment basis, the payment of documentary stamp tax (DST) shall accrue upon the execution of the Deed of Absolute Sale but the basis for the imposition
-Per Revenue Regulations No. 13-2004, the following instruments, documents and papers shall be exempt from the DST:  Transfer of property pursuant to Section 40(C)(2) of the National Internal Revenue Code of 1997, as amended.


Sample computation of DST on transfer of real property

Example: A residential lot in Pasig City with a floor area of 200sqm has a Selling Price of P3 Million. The Deed of Sale stipulated that the buyer shall shoulder DST. The following are the fair market value information of the real property:

1. Fair Market Value as determined by BIR Commissioner (Zonal Value/BIR Rules):
1a. Land: P1,600,000 (let us say BIR Zonal value is P8,000/sqm [200 x 8,000=1,600,000])
1b. Improvement: P1,200,000

2. Fair Market Value as determined by Provincial/City Assessor’s (per latest Tax Declaration):
2a. Land: P1,400,000
2b. Improvement: P1,300,000

Question: How much is the DST?


Step 1. Determine the highest fair value (FMV):

Total FMV1 (1a + 1b): P2,800,000
Total FMV2 (2a + 2b): P2,700,000
Total FMV3 (1a + 2b): P2,900,000
Total FMV4 (2a + 1b): P2,600,000

The Highest FMV is FMV3: P2,900,000. This is the FV we will use in the step 2.

Step 2. Determine the higher between FMV and Selling Price:

FMV = P2,900,000
Selling Price = P3,000,000

The higher value is the selling price P3,000,000. This is our tax base for computing DST.

Step 3. Calculate DST.

DST = P3,000,000 x 1.5%
DST = P45,000


When and where to file and or pay the BIR Form 2000-OT?

The return shall be filed and the tax paid wit hin five (5) days after the close of the month when the taxable document was made, signed, issued, accepted or transferred.

The return shall be filed with and the tax paid to the Authorized Agent Bank (AAB) within the territorial jurisdiction of Revenue District Office (RDO) where the seller/transferor is required to be registered or where the property is located in case of sale of real property. In places where there are no AAB’s, the return shall be filed directly with and tax paid to the Revenue Collect ion Officer (RCO) or duly Authorized City or Municipal Treasurer within the RDO where the seller/transferor is required to be registered or where the property is located in case of real property.

For the attachments required, please see BIR Form 2000-OT. For computing Capital Gains Tax on transfer of real property, classified as capital asset, in the Philippines, please read our article “How to Compute Capital Gains Tax on Sale of Real Property“.

Source: BIR Revenue Regulations No. 13-2004, BIR website, BIR Form 200-OT, NIRC of the Philippines

Disclaimer: This article was published for informational use only. Subsequent and new laws, regulations, issuances and rulings may render the whole or part of the article obsolete or incorrect. For more clarifications and inquiries, please the visit the BIR RDO in your jurisdiction.

Victorino Abrugar is a retired CPA practitioner, a blogger, speaker, and an entrepreneur. He's the President of Optixor, Inc., a digital marketing company based in the Philippines. Follow him on Twitter at @viclogic.


  1. says

    Nice Vic. This is the tax type that is common but neglected by some. Common to brokers and realtors but neglected by some real property owners who seldom sells, but because buyers cannot transfer title under their name without the Certificate Authorizing Registration (CAR), then, they became aware as soon as they process with the BIR for such CAR. For sellers, you can pass this tax to buyers because any of the parties may be held liable, or that they can agree on who should pay this tax.

    • Vic says

      Thanks Gar, this is actually a supporting article on our post about registering real property in the Philippines. BTW, you can register at Gravatar ot get a gravatar so that you can have a photo beside you comments everywhere in the blogosphere. You can also make your gravatar the logo of your firm. :)

  2. says

    Hi Vic,

    I have a question maybe you can help me.
    We bought a house and lot in 2009 for installment in one of Sta. Lucia subdivisions and then we wanted to transfer our payment to PAG-IBIG. One requirement when applying housing loan in PAG-IBIG is transfer of title.

    My question is: Who should pay for DST? Me or Sta. Lucia?

    Also, about the capital gain tax on your other article, is it applicable in my case. Will I shoulder the capital gain tax or not?


    • says

      Hi Gil,

      Please see my view below.

      My question is: Who should pay for DST? Me or Sta. Lucia? Ans. DST could be contractual which means that the parties may agree who will shoulder. Please check it out on the contract, though in practice, it is the buyer who shoulders but the seller normally takes care of the remittance. Check also with them, they might have taken cared of this already.

      Also, about the capital gain tax on your other article, is it applicable in my case. Will I shoulder the capital gain tax or not? Ans. On the sale to you, capital gains tax (CGT) does not apply because the property is an ordinary asset on the part of Sta. Lucia, the seller. Normal income tax applies and not CGT. Nevertheless, CGT is imposed upon the seller and not the buyer.

  3. Manuel says

    We are planning on buying the apartment unit we are currently renting. My question is, is the property being sold consider as capital asset or ordinary asset? The lessor is a registered property corporation but is not registrated under HLURB. The nature of their business is home rental. Thanks

  4. Manuel says

    The seller is asking us the buyer to shoulder the capital gain tax. We are not sure if the property is subject to 6% capital gain tax or it be subjected to corporate tax since the company selling the property is a real property company engaged in leasing, which I’ve read in one of the article in this site that property held by real estate dealer, developer are considered as ordinary asset.

  5. Juan Personales says

    Sir im planning to buy a lot to be loaned at pagibig from my friend, who will shoulder for the CGT? me as buyer or the seller?

  6. JB Geraldino says

    Hi, I am planning to buy a residential house and lot through bank financing. Who will shoulder the capital gains tax? And I believe I’m the one who will shoulder the DST, right? Thanks!

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