What is this form?
BIR Form 1706, or also known as Final Capital Gains Tax Return are taxes imposed for Onerous Transfer of Real Property Classified as Capital Assets. Taxes may be taxable or exempt.
Who should file this form?
This form shall be filed in triplicate copies by the Seller/Transferor who is natural or juridical whether resident or non-resident, including Estates and Trusts, who sell, exchange, or dispose of a real property located in the Philippines classified as a capital asset.
Taxpayers who are filing BIR Form No. 1706 are excluded in the mandatory coverage from using the eBIRForms (Section 2 of RR No. 9-2016).
When to file this form?
This return shall be filed and paid within thirty (30) days following the sale, exchange, or disposition of real property
How to File?
To file a BIR Form 1706 in Fast File, follow the steps below:
STEP 1: From your portal click on the Start Return button.
STEP 2: Select General Forms and hit Next.
STEP 3: Choose 1706 then click the Next button.
STEP 4: Select the date of the transaction covered in this report. Choose from the Year and Month drop-down buttons then click Next.
STEP 5: In the first section of this form, choose Individual in item 4 (Alphanumeric Tax Code / ATC) to enable items 16 & 17.
STEP 6: In the second section of the form, enter all Background information properly based on your BIR Certificate of Registration (COR / Form 2303).
Certain parts of the form are already pre-populated based on the information that you have provided during the Organization setup.
In the Buyer's Information part, enter the Buyer's TIN, RDO Code, Name, and Registered Address. Lastly, input the Location of Property and its RDO Code.
STEP 7: In the second section of the form, enter the Property Information.
If you choose the Installment Sale arrangement, make sure to pick the correct option in item 21 (Description of Transaction) to enable the data entry in item 22.
You are also required to enter the No. of Installments in the Contract, item 27.
STEP 8: In the Fair Market Value section, enter the assessed value of the property based on factors 29 A-D (as seen on the report).
STEP 9: In this section, item 30C is pre-populated based on the information you entered in the previous section of the form. Fill out the rest of the details to determine your Taxable Base.
STEP 10: The Summary of Tax Due section is also pre-populated with the exact information included in your tax form. This is why you need to go through all of the sections to make sure you that are filing an accurate return.
That's it! Thank you for filling out your BIR Form 1706.
Unfortunately, e-payment for this form is yet to be available in Fast File. In the meantime, you can settle your payments through:
Any Authorized Agent Bank (AAB) or
Revenue Collection Officer (RCO) of the Revenue District Office (RDO) having jurisdiction over the place where the property being transferred is located.
BIR Form 1706 is straight-out simple to fill out and complete. Get started on your tax-compliance journey today and start filing at https://juan.tax/fast-file 🤗