Tuesday, May 27, 2014
Being a homeowner brings much freedom and responsibility with regards to your property. You can renovate your home without asking for permission from a landlord. Altering rooms and partitions in your house is entirely up to you.
However, these perks also come at a cost. As a homeowner, you’ll have to spend for maintenance costs, utility bills, as well as property taxes. There are two types of taxes that are imposed on real estate in the Philippines, namely Real Property Tax (RPT) and Special Education Fund Tax (SEFT). It’s important to pay these taxes properly and on time to avoid penalties.
Payment of both the RPT and SEFT may be made in full or in four equal installments over a year. If you’re paying in full, the total annual tax should be paid on or before March 31 of every year. On the other hand, if you choose to pay in installments, the first quarterly payment should be made on or before March 31, the second on June 30, the third on September 30, and the fourth on December 31.
The RPT and SEFT are local taxes and should be paid to the coordinating local government with due jurisdiction over your property. These taxes should be paid to the city, provincial or municipal treasurer of the city, province or municipality of your property. Consult your local government to determine how much you need to pay for your property taxes.
Failure to pay your RPT and SEFT will result in penalties. Penalty interest amounts to two percent per month, but not exceeding 36 months. Non-payment of your taxes will also give your local government the right to foreclose your property and sell it at a public auction. The proceeds will be put forward to pay for your taxes and delinquent charges, and the excess amount will be turned over to you. To avoid these penalties, simply pay your taxes in a timely manner.