FAQ on Investing with Sun Life Mutual Funds

Balanced Fund_August 2013

 

Balanced Fund_July 2013
What is a Mutual Fund?

 

A Mutual Fund is an investment company that pools together money from different investors and invests them in various securities depending on the investment objective of the fund. The mutual fund company issues shares to the public that represents their holdings in the fund.

What are the different types of Mutual Funds available?

There are four basic types of mutual funds currently available in the market categorized according to the investment objective of the fund or the investments that the fund is  primarily invested in.

  1. Money Market Funds invest purely in short-term (one year or less) debt instruments.
  2. Bond Funds invest in long-term debt instruments of governments or corporations.
  3. Balanced Funds invest both in shares of stock and debt instruments.
  4. Stock Funds / Equity Funds invest primarily in shares of stock.
Type of Prosperity Fund What’s My Objective? Where will my money go? What’s my risk appetite? How much is the minimum investment? What’s the minimum amount if I want to add?
Money Market Fund I just want to leave my cash for a short period of time and earn from it, too. This Fund invests in special savings accounts I’m very conservative Php 5,000 Php 1,000
GS (Government Securities) Fund I want my money to earn but my investment should be kept intact. This Fund invests mainly in government debt I’m conservative Php 5,000 Php 1,000
Bond Fund I want my money to earn but my investment should be kept relatively stable. This Fund invests in government and high-quality corporate debt I’m moderately conservative Php 5,000 Php 1,000
Balanced Fund I want my money to earn more and I can afford to lose some of my investment for higher return This Fund invests in a mix of  high-quality debt and equity securities I’m somewhat between conservative and risky Php 5,000 Php 1,000
Philippine Equity Fund I want to maximize the potential of my money for  higher return over the long term This Fund invests mainly in  high-quality equity securities I believe in the saying, “high risk, high return” Php 5,000 Php 1,000
Dollar Abundance Fund I want to invest my US dollars to preserve it. This Fund invests in foreign-denominated government and high-quality corporate debt I’m conservative USD 1,000 USD 200
Dollar Advantage Fund I want to invest my US dollars and I can afford to lose some of my investment for higher return This Fund invests in a mix of  high-quality debt and equity securities I’m somewhat between conservative and risky USD 1,000 USD 200

How do I earn from Mutual Funds?

If the NAVPS of the mutual fund you are invested in increases or appreciates, you can sell your mutual fund shares for a profit. In the same way, if the NAVPS of the mutual fund you are invested in decreases or depreciates, you may realize a loss if you redeem.

Like any other investment instrument, mutual funds are best held long-term especially for mutual funds that have investment objectives of capital growth such as equity funds.

Why should I invest in Sun Life Financial’s mutual funds?

Sun Life Financial is the only company in the Philippines offering a “family of funds”. Unlike other mutual fund companies in the Philippines, Sun Life Financial allows its investors to transfer their placements between the Sun Life Prosperity Funds as much as four times a calendar year, without being subjected to any charges or fees. This is because Sun Life Financial believes that investors’ needs change over time, and that they should not be penalized for shifting from one fund to another, if so dictated by their prevailing investment requirements. This is part of Sun Life Financial’s objective of becoming a total financial services company that is responsive to people’s needs.

Should I invest in mutual funds if there’s a decline in investor confidence with regards to the local economic market?

The decline of the local market, specifically the local stock exchange, is not exactly bad for mutual funds. In fact, this is the ideal time to buy stocks for mutual funds, when the prices are low. When the market improves and share prices go up, as they will, given time, the value of the equity securities will have risen along with them. Mutual funds are long-term investments, which should not be bought or sold based on short-term events.

Why should I prefer mutual funds when I can invest directly in the stock market?

Mutual funds can serve as an alternative to investing directly in the stock market. The Sun Life Prosperity Philippine Equity Fund invests in equities, which have historically been proven to outpace inflation. Compared with buying stocks directly, mutual funds require a lower initial capital outlay yet allow you to achieve diversification at the same time. What this means is that in mutual funds, for a relatively small amount of money, you can afford to buy into several companies and achieve variety for your portfolio. When buying stocks directly, however, you may have to use a larger amount of money in order to achieve the same level of diversification.

What is the difference between a mutual fund and a unit investment trust fund?

Both Mutual Funds and Unit Investment Trust Funds are fundamentally similar in the sense that they are both pooled funds wherein a group of investors entrust the management of said fund to a fund manager. The fund manager must then manage the funds among certain asset classes usually indicated in the name of the fund such as stocks, bonds or balanced. Thus, the decision of the investor should ultimately be based on the skill and reputation of the fund manager. Similarly, funds are valued under similar accounting standards, such as those governing mark-to- market, and the funds are entrusted to third party custodians. Both Mutual Funds and UITFs are not guaranteed unlike time deposits.

Notwithstanding, there are still important differences. Mutual funds, which are regulated by the SEC are corporations, thus, investors in these funds are shareholders and entitled to all the rights given to shareholders (except preemptive rights) such as participating in stockholders meetings or electing directors. Clients of UITF’s, which are regulated by the BSP, are not shareholders and do not enjoy these rights.

What are Sun Life Financial’s credentials in the areas of mutual fund management?

Sun Life Financial, through its subsidiaries worldwide, has been managing mutual funds for several decades. In fact, the oldest mutual funds in the United States and Canada are managed by members of the Sun Life Financial group of companies. The Sun Life Financial group of companies manage a combined total of CDN$388.7 billion of assets under administration as of September 30, 2008.

Locally, the investment management of our funds will be handled by our investment team in Manila. They presently manage assets in excess of Php 86 billion as of end-June 2007.

How liquid are the shares of the Sun Life Prosperity Funds? If I want to redeem my investment, how long does it take to process the transaction? 

You will get your redemption proceeds in a few days (maximum of seven business days) from the time your redemption order was received by our head office in Manila. The value of the redemption proceeds that you will receive will be based on the Net Asset Value per Share (NAVPS) applicable on the day your transaction was processed.

How much do you charge investors who purchase shares of the funds?

We offer our investors two purchase options when they place their money in our funds:

 The first option (Option A) is to pay an up-front sales charge, depending on the amount invested or upon investing. This sales charge is what we call the front-end load, and is used to cover expenses related to the distribution of the funds.

 The other option (Option B) is the back-end load which allows the investor to pay the sales charge upon redemption (selling shares to the fund), or even avoid paying the sales charge altogether, as long as he remains invested in the fund for at least five years. The deferred sales charge is on a decreasing annual basis, and reaches zero after five years.

How much is the required minimum initial investment?

For the peso-denominated funds, the required minimum initial investment is Php 5,000 for Options A & B. For the dollar denominated funds, the minimum initial investment is USD 1,000 for both options.

Am I required to make subsequent investments after the initial investment?

Subsequent investments are not a requirement. However, should you wish to increase your investment in the funds, the minimum amount for subsequent investments is Php 1,000 for the peso funds and USD 200 for the dollar denominated funds. This applies to any of the two purchase options.

We strongly advise our investors to regularly set aside a fixed amount of money for investments, regardless of the NAVPS. This way, you automatically buy more shares when the price is low, and fewer shares when the price is high. This kind of discipline is what we call Peso Cost Averaging.

Can you give me an estimated rate of return in a mutual fund?

Mutual funds are essentially long-term investments. You can get the maximum benefits from a mutual fund if you leave your money with the fund and let it grow. At the same time, the rate at which your money will grow cannot be predicted because when you invest in a mutual fund, you are investing in a diversified portfolio of securities that normally fluctuate in value. The securities markets in which mutual funds invest tend to rise and fall over the short-term, as will the value of your investment. Your ability to withstand short-term volatility will generally result in greater returns over the long-term.

How are investors protected in a mutual fund?

Mutual funds offer several levels of investor protection. First, they are regulated by the Securities and Exchange Commission of the Philippines.

Second, every mutual fund corporation has a Board of Directors to whom it reports and whose primary duty is to protect investors’ interests. Each fund has a different Board of Directors and each board is composed of a majority of people who are not connected with Sun Life Financial or any of its subsidiaries.

Third, mutual fund securities are held by a reputable custodian and do not form part of the assets of the company managing the fund. The custodian banks of the Sun Life Prosperity Funds include Citibank, N.A., Deutsche Bank, A.G., and Hong Kong and Shanghai Banking Corporation Limited. They keep all stock certificates and any other documents that evidence ownership of the funds’ assets. The primary purpose of having a custodian is to safekeep the assets of the funds.

Can I place an investment under the name of my child? If yes, what is the procedure on this?

You may place investments in the Sun Life Prosperity Funds under your name in trust for your child. Simply fill-out and indicate in the application form that the account is “in trust for” (ITF) the name of the child and accomplish a Confirmation of Trust agreement, available upon request from our Investor Services Department. Make sure that you provide a photocopy of your child’s birth certificate when placing investments under an ITF account. However, please note that the investment will not automatically be placed under the name of the child, when he/she reaches the age of majority. A written request must come from you in order for the transfer to take effect.

How much am I charged when I invest?

Investors are charged depending on the purchase option they have opted for. These are the following:

The Front-End load (Option A) sales charges are applied against the original capital at the time of purchase (plus 12% VAT) depending on the amount invested. This stands as a compensation for the registered representative and covering expenses related to the distribution of the funds.

For Peso Denominated Funds

Investment
Load Rate*
Less than P100,000
2.00%
P100,000 to less than P1M
1.50%
P1M to less than P5M
1.00%
P5M and up
0.50%

For Dollar Denominated Funds

Investment
Load Rate*
Less than US$2,000
2.00%
US$2,000 to less than US$20,000
1.50%
US$20,000 to less than US$100,000
1.00%
US$100,000 and up
0.50%

The Back-End load (Option B) allows the investor to pay the sales charge (plus 12% VAT) only upon redemption, or even avoid paying sales charges as long as they remain invested for at least five years.

 For Peso and Dollar Denominated Funds

If redeemed within…
Back-End Load*
   1st year
5%
   2nd year
4%
   3rd year
3%
   4th year
2%
   5th year
1%
   Beyond 5 years
NONE

*Exclusive of VAT

What is NAVPS?

NAVPS or the net asset value per share represents the price of one share from a mutual fund. All shares in a mutual fund are bought and sold using the NAVPS, which changes every business day depending on the market performance of the fund.

Investing in Mutual Fund is similar to buying shares of a company. Your share has specific value which will vary from day to day. The term used to determine the value of your investment in Mutual Funds is referred to as the Net Asset Value Per Share (NAVPS). NAVPS is calculated daily at the end of trading day, so the price of your investment changes from day to day. One can calculate the NAVPS by dividing the total assets less total liabilities by the number of shares outstanding:

NAVPS = Total Value of Fund Assets – Fund Liabilities
                    Number of shares outstanding

How is the number of shares computed?

To compute for the number of shares bought, we simply divide the investment amount by the Offering Price

Offering Price – is equivalent to the NAVPS plus applicable sales charge:

No. of Shares Bought = Amount of Investment
Offering Price

  In what banks can I deposit my subsequent investments?

COLLECTION ACCOUNTS
UNDER ACCOUNT NAME : SUN LIFE ASSET MANAGEMENT COMPANY, INC.
As of June 24, 2009
BANK TYPE BANK ACCT NO.
PESO ACCOUNTS
BANK ACCT NO.
DOLLAR ACCOUNTS
1
Bank of the Phil Islands SA 0073-1798-07 1624-0061-07
2
Banco de Oro SA 046-004225-4 046-006383-9
3
Equitable-PCI/Banco de Oro SA 36-0000-2338 1700-1507-80
4
ChinaBank SA 203-103-6216
5
China Trust SA 002-020-20899-0 206001449-1
6
Citibank SA 5-602714-022 5-602714-057
7
Deutsche Bank SA
1204-668-305
8
HongKong Bank (HSBC) SA 000-270579-070 001-095603-130
9
Landbank SA 1801-0249-00
10
Maybank SA 01-059-003283-8 01-759-000153-0
11
Metrobank SA 066-3718-10691-6 066-2066-10860-5
12
Phil National Bank SA 390-5704000-12 390-5704000-20
13
RCBC SA 3-001-00840-3 8-001-00967-3
14
Security Bank SA 0514-020724-200 0514-020724-201
15
Standard Chartered Bank SA 014-0953811-004 905-534910-3349
16
UCPB SA 104-165963-8 01-104-300835-0

To know more about the Sun Life Prosperity Funds, please get in touch with me by leaving  your message and contact details in the comments section below and I will get back to you.

Azon LopezSun Life Mutual Fund Advisor

The Sun Life Prosperity Funds are managed and distributed by
Sun Life Asset Management Company, Inc.,
a member of the Sun Life Financial group of companies.

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NBI Clearance Application Process

FREQUENTLY ASKED QUESTIONS ON NBI CLEARANCE PROCESSES

NBI is now implementing the NBI Biometric Clearance System, which involves the scanning of the ten fingers of clearance applicant. If the previous system of taking fingerprint impressions uses ink and is messy, the new system uses fingerprint scanner and will not leave any smudge on the fingers.

Since 2011, the NBI Clearance has now its own permanent site, the NBI Clearance building located at UN Avenue, Ermita, Manila.  It is within the Bureau’s Main Office premises at said place.  It is open from 6:00am to 5:00pm.

The regional and district offices, Local Government Units, and Ever Gotesco Malls are open from 8:00am to 5:00pm.  Duty Free Phils. opens from 9:00am to 5:00pm (for Travel Abroad only) while Robinson Malls are open from 10:00am to 7:00pm.  All these processing centers are open from Mondays to Fridays except holidays.

How do we apply for NBI clearance under this new system?

– Go to the nearest NBI clearance outlet, the list of which will be enumerated below, and line up to get an application form. An application form may also be downloaded from here. Answer all the required personal data on the form.

Requirements:
– The requirements are two (2) valid Identification Cards, such as:

a) Valid passport

b) Voter’s ID

c) Driver’s License

d) PRC License

e) SSS ID

f) GSIS UM ID

g) Postal ID

h) School ID

i) TIN ID

j) Philhealth ID

k) Authenticated Birth Certificate

l) Alien Certificate of Registration

m) Senior Citizen’s ID

n) Previous Copy of NBI Clearance

The steps are as follows:
a) Present the accomplished application form, together with two (2) valid ID’s, to the Data Check Counter, for checking, if data are complete and correct;
b) Pay for the corresponding clearance fee at the Payment Counter;
c) The data on the application form will be encoded at the Data Entry or Encoding Counter. A PC monitor is provided for the applicants to check any encoding error, thus, avoiding repayment on their part and complaint against the encoder;
d) Picture-taking or image capture and scanning of the applicant’s fingerprints (Biometric) will follow;
e) At the Image and Biometric Counter, name of applicant is automatically searched against the Name Database to check whether one has no or with namesake;
f) NBI clearance certificate of one who has no namesake will be printed at the Printing Counter and released on the same date of application;
g) Those with namesakes are verified against the Criminal History Database to check whether one has criminal record/s;
h) Those with namesakes are advised to proceed to the Releasing Counter located at the Ground Floor of the Clearance Building, on the release date written at the back of the Official Receipt;
i) Those found to have criminal records are advised to proceed to the Quality Control for interview. Interviewers will require an applicant to execute an Affidavit of Denial if he is not the offender and Court Clearance/Order if he is the offender.

How much do we pay for NBI clearance application?
– Clearance fee depends on the purpose of application such as the following:

A. Naturalization, Cancellation of Alien Certificate Of Registration (ACR) and Repatriation –  Php415.00

B. Business Requirement, Change of Name, Permit to Carry Firearms, Adoption, NFA, POEA, PRA, SEC Requirement – Php165.00

C. Travel Abroad, Visa Seaman, Local Employment, Other Requirement – Php115.00

NBI Clearance Outlet Address
a) NBI Clearance Center U. N. Avenue, Ermita, Manila
b) Quezon City Hall Makatarungan St. Diliman QC
c) Muntinlupa City Victory Shopping Center, Alabang
d) Mandaluyong City Hall Maysilo Circle, Mandaluyong City
e) SM SouthMall Alabang Zapote Rd, Las Pinas
f) Robinson’s Place Basement I Ermita, Manila
g) Robinson’s Otis Level 2 Guanzon St Paco, Mlah) Robinson’s Galleria Basement I Ortigas Ave QC
i) Robinson’s Metro East Level 4 Marcos Hi-way Pasig
j) Robinson’s Cainta Level 2 Junction Cainta, Rizal
k) Robinson’s Novaliches Novaliches QC
l) Ever Gotesco Recto 3rd Flr Cinema 3 Recto Ave, Mla
m)Ever Commonwealth 2nd Flr Cinema I Comm., QC
n) Duty Free Fiesta Mall N Aquino Ave Paranaque City

Outside Metro Manila (Luzon, Visayas and Mindanao)
a) Marilao Municipal Hall Beside PNP Stn Marilao, Bulacan
b) Lipa City Hall Lipa City, Batangas
c) Rodriguez Mun Hall Rodriguez, Rizal
d) Calamba Mun Hall Calamba, Laguna
e) Robinson’s Tarlac Hacienda Luisita
f) Robinson’s Dasmarinas Dasmarinas, Cavite
g) Robinson’s Imus Imus, Cavite
h) Robinson’s Sta Rosa Sta Rosa, Laguna
i) CyberGate Cebu City
j) Tuburan Satellite Office Tuburan, Cebu
k) Tagbilaran Bohol Tagbilaran, Bohol
l) Bien Unido Bohol

NBI Regional and District Offices
1) Cordillera Administrative Region Baguio City
Region I
2) Ilocos Regional Office San Fernando, La Union
3) Dagupan District Office Dagupan City
4) Laoag District Office Laoag City, Ilocos Norte
5) Vigan District Office Vigan, Ilocos Sur
Region II
6) Cagayan Valley Reg Office Tuguegarao, Cagayan
7) Bayombong District Office Bayombong, Nueva Vizcaya
8) Isabela District Office Ilagan, Isabela

Region III
9) Central Luzon Reg Office San Fernando, Pampanga
10) Bulacan District Office Malolos City, Bulacan
11) Cabanatuan District Office Cabanatuan City, N Ecija
12) Olongapo District Office Olongapo City, Zambales
13) Tarlac District Office Tarlac City, Tarlac
Region IV-A
14) CaLaBaRZon Batangas City, Batangas
15) Cavite District Office Tagaytay City, Cavite
16) Lucena District Office Lucena City, Quezon
17) Laguna District Office Sta Rosa, Laguna
Region IV-B
18) MiMaRoPa Calapan, Oriental Mindoro
19) Puerto Princesa District Off Puerto Princesa, Palawan
Region V
20) Bicol Regional Office Naga City, Camarines Sur
21) Legaspi District Office Legaspi City, Albay
Region VI
22) Western Visayas Reg Office Iloilo City, Iloilo
23) Bacolod District Office Bacolod City, Negros Occ
Region VII
24) Central Visayas Reg. Office Cebu City, Cebu
25) Dumaguete District Office Dumaguete City, Negros Or
Region VIII
26) Eastern Visayas Reg Office Tacloban City, Leyte
27) Samar District Office Catbalogan City, SamarRegion IX
28) Western Mindanao Reg Off Zamboanga City
29) Dipolog District Office Dipolog City
30) Pagadian District Office Pagadian City
Region X
31) Northeastern Mindanao Cagayan de Oro City
Regional Office
32) Iligan District Office Iligan City
Region XI
33) Southeastern Mindanao Davao City
Regional Office
34) Tagum District Office Tagum City
Region XII
35) Central Mindanao Koronadal City
Regional Office
36) Saranggani District Office General Santos City
Region XIII
37) CARAGA Butuan City
Region XIV
38) ARMM Cotabato City

How do persons living abroad apply for NBI Clearance?
– Secure NBI clearance application form from the PhilippineEmbassy/Consulate in the country where applicant resides, else, ask a relative in the Philippines to send application form, which can be secured from the Office of the Identification and Records Division (IRD), 4th Floor, NBI Clearance Building, UN Ave., Manila.
– Accomplish the form and ask for assistance in taking your fingerprint impressions (rolled) and have it signed by the one who assisted in the fingerprinting. Attach one (1) 2×2 picture
in white background, photocopy of passport, photocopy of Identification Card/s and Authorization letter if a relative in the Philippines will submit the application in your behalf.
This relative will also be in-charge of sending you your NBI clearance certificate.

If you are sending the application to the Philippines thru mail or forwarders, address same to

Ms. Julie Macalit

Mailed Clearance Section, 2nd Floor NBI Clearance Building, U.N. Avenue, Ermita, Manila.

If you will send a check, it should be payable to the NBI Director in Philippine currency in the amount of two hundred pesos (P200.00) with drawee bank in the Philippines. If you will send cash, dollars are acceptable, the amount of which, is equivalent to two hundred pesos (P200.00). Your NBI clearance certificate will be mailed to you thru air mail.

NBI Clearance Online Application

There is also an NBI Clearance online application which the detailed process can be found here.

How about foreign nationals who need NBI clearance?
– Fill-out the NBI application form for foreigners (red Fingerprint Chart). You will also be required to fill-out the application form for the Biometric Clearance System. Indicate
on the application form your name that is reflected on your passport. Attach photocopy of your passport and Alien certificate of registration (ACR).
– Go through the steps of clearance processing, after which, submit application to the Alien Counter, where you will be fingerprinted for rolled impression.
– You will be advised when to claim for your NBI Clearance Certificate.

For more information and clarification:

– You can reach NBI at Telephone number 5261294 or at Trunkline 5238231 Local 5523, 5499 and 5502;
– Email NBI at nbiclearance@nbi.gov.ph;
– You can text your questions regarding online application andGCash Payment at 0917-5638052.

Source: NBI website (http://www.nbi.gov.ph/nbcs/FAQ.pdf)

How to Register a Newly Bought Property in the Philippines

It is very common for an OFW to buy a new property in the Philippines after a few years of earning a better income from abroad.

We didn’t immediately realized that it is easier to find a property that you wants to own than to get it registered in your name after paying a large sum of money as it does not ends there. Most of us are not familiar with the whole process of registering a property to the name of the new Owner.  Here are a few steps that may help you:

STEP 1 -DEED OF ABSOLUTE SALE

Anyone between the Seller and Buyer (or their Lawyers, if any) may prepare the Deed of Sale as long as it has been executed before and Notarized by a Notary Public.

NOTES:

a.) If you are a Buyer, let me remind you that before giving all the money to the Seller be sure that you got from him some important documents that you would need in the registration of the property under your name such as a copy of his validID, a recent CTC and TIN or a copy of TIN Car original copy of all Real Property Tax Receipts in his possession.

b.) If the Seller is a Corporation, you would need from them a notarized secretary’s certificates containing the resolution of their board of directors approving the sale and a certificate from the Securities and Exchange Commission (SEC) stating that its articles of incorporation have been registered with the SEC.

STEP 2 –CITY ASSESSOR’S OFFICE (Located in the City Hall or Municipal Hall)

Secure the following:

a.) Certified True Copy of Tax Declaration (House and Lot)

b.) Certificate of No Improvement (If property is vacant lot)

c.) Two Original Copies – 1 for BIR and 1 for Registry of Deeds

STEP 3 – LAND TAX DIVISION OF CITY TREASURER’S OFFICE (Located in the City Hall or Municipal Hall)

Secure the following:

a.) Tax Clearance

Note: In order to obtain a Tax Clearance, the Seller must pay first all arrears on Property Tax (if any and must be updated as of document of sale).  Therefore,  it is important that you got hold of the original of the official receipts evidencing payment by seller of realty taxes of the current and preceding years, before you gave him the full payment of the sale.

We had an experience that the Seller was able to gave us the Property Tax Receipt of the current year however, upon application of Tax Clearance it was discovered that the previous five years was not paid!

STEP 4 – BUREAU OF INTERNAL REVENUE

Submit the following:

  • Tax identification number (TIN) of seller and buyer;
  • Notarized deed of absolute sale/document of transfer, but only photocopied document shall be retained by the BIR;
  • Certified true copy of the latest tax declaration issued by the City Assessor’s Office for the land and improvement applicable to the taxable transaction;
  • Owner’s copy (for presentation purposes only) and photocopy (for authentication) of the Original Certificate of Title (OCT), or the certified true copy of the Transfer Certificate of Title (TCT);
  • Sworn declaration of “with Improvement” by at least one (1) of the transferees, or certificate of “with Improvement” issued by the City Assessor’s Office.

You (and/or the Seller, depends on the agreement) have to pay the following:

a.) Capital Gains Tax (6% for individual seller) or Witholding Tax (7.5% if seller is a corporation) – it is the Seller’s responsibility to pay the Capital Gains Tax (CGT) or Witholding Tax unless the Buyer agrees otherwise

b.) Documentary Stamps Tax (1.5% of the selling price or zonal value or fair market value, which ever is higher) – Payment for DST is responsibility of the Buyer

You shall received the following:

  • The Certificate Authorizing Registration
  • The Original copy of the Deed of Absolute Sale stamped received by the BIR
  • Original Copies of the BIR Return Forms 1706 (CGT) and 2000 (DST) stamped received by the BIR

Important Notes:

i.) Capital Gains Tax and Documentary Tax shall be computed based on Selling Price (per Deed of Sale), or Market Value of Tax Declaration, or BIR Zonal Value, whichever is higher.

ii.) If the Buyer agrees to pay the Capital Gains Tax, it very important that you get the Seller’s Tax Identification Number (TIN) and a copy of his ID

iii.) Forms for payment of Capital Gains Tax can be secured from the BIR or may be downloaded from the BIR website http://www.bir.gov.ph

iv.) Payment for Capital Gains Tax and Documentary Stamps can only be paid at the BIR Regional Office or BIR authorized banks where the property is located.  It can be paid either in cash or manager’s check.

v.) Capital Gains Tax shall be filed and paid to the BIR within thirty days from the date of sale, otherwise there will be interest and penalty.

vi.) Documentary Stamps Tax shall be paid on or before the 5th day of succeeding month from the date of sale.

STEP 5 – MUNICIPAL TREASURER’S OFFICE (Located in the City Hall or Municipal Hall)

Pay the following:

a.) Transfer Tax is computed as 1/2 of 1% (0.5%) of the Selling Price or Zonal Value or Fair Market Value of Tax Declaration, whichever is higher. – Payment of Transfer Tax is responsibility of the Buyer

NOTES:

i.) The transfer tax must be paid at the CTO not later than 60 days from the date of execution of the Deed of Absolute Sale or the notarization date thereof, whichever is earlier.

ii.) Prepare the following requirements:

  • Certificate Authorizing Registration from the Bureau of Internal Revenue
  • Tax clearance certificate from the Treasurer’s Office
  • Official receipt of the Bureau of Internal Revenue (for documentary stamp tax)
  • Photocopy of Deed of Sale
  • Photocopy of Transfer Certificate of Title (TCT)
  • Photocopy of Tax Declaration

STEP 5 – REGISTRY OF DEEDS (Located in the City Hall or Municipal Hall)

Pay the following:

a.) Registration Fee – 0.25% of the selling price, or zonal value or fair market value, which ever is higher. – Payment of Registration Fee is responsibility of the Buyer

Apply for registration and submit the following documents:

  • Copy of deed of absolute sale;
  • Official receipt evidencing payment of transfer tax;
  • Certificate Authorizing Registration from the BIR (CAR) including official receipts for payment of DST and CGT;
  • Real property tax clearance from the City Treasurer’s Office;
  • Original copy of owner’s duplicate of TCT (in the name of the seller);
  • Original or certified true copy of the latest tax declaration;

If Seller is a corporation, include the following:

  • Notarized secretary’s certificate containing resolution of the board of directors of the seller approving the sale;
  • Notarized secretary’s certificate containing resolution of the board of directors of the buyer approving the sale;
  • Articles of incorporation of the buyer and by-laws; and
  • Certificate from the SEC that the articles of incorporation of the buyer have been registered.

NOTE:

A new Certificate of Title under the New Owner’s Name will be issued by Registry of Deeds.  Be sure to double check the spelling of names and other information in the new TCT before receiving the new TCT.

STEP 6 – MUNICIPAL ASSESSOR’S OFFICE (Located in the City Hall or Municipal Hall)

Secure the following:

a.) New Tax Declaration

NOTES:

i.) Prepare the following requirements:

  • Photocopy of notarized deed of sale
  • Copy of latest tax declaration (in the name of seller)
  • Tax clearance certificate of real property taxes from the CTO 
  • Certificate authorizing registration from the BIR 
  • Photocopy of official receipt of transfer tax payment (original copy to be presented)
  • The transfer certificate of title (TCT) issued by the RD (in the name of the buyer) 

Hope this helps! Good luck with your transactions as I tell you, it was not that easy. 🙂 But if you have question, please post it below and I will try my best to answer them.

Rooms For Rent at Sampaloc, Manila

ROOMS FOR RENT at Sampaloc Manila
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Our rooms for rent is located along F. Cayco Street, Sampaloc, Manila.  We accept students, reviewees or working ladies. 

Rooms Available:

Good for 1 person (ladies only) – Php3,500 / month

Good for 1 to 2 persons (ladies only) – Php4,000 / month

Good for 1 to 3 persons (ladies only) – Php4,500 / month

Newly renovated with two toilet and bath and kitchen.

Each room has an individual sub-meter for electricity consumption. Water bill shall be divided between the number of tenants.

One month deposit and one month advance rental fee requirement.

The place is safe and secured.

There is no curfew hours.

Location:Location  Map2

Walking distance to Nazareth School, National University (NU), University of Sto. Tomas (UST), Lianas Supermarket, Mercury Drug, Mcdo, Dalin Transit Terminal, Victory Liner Bus Terminal, Florida Bus Line Terminal

There are taxis, FX from Makati and jeepneys passing in front of the house routing Quiapo – Balic balic and Divisoria

Accessible from LRT-2 Legarda. One ride to San Beda College, Arellano University, Centro Escolar University (CEU), Holy Spirit College, La Consolacion College, Sta. Rita College, San Sebastian College, National College of Business & Arts (NCBA), Univeristy of the East (UE) and Far Eastern Univeristy (FEU), Isetann Recto.

Please send a message or email for inquiries or you may also contact the following:

Email: den_zon@yahoo.com

Skype: den_zon

Cellphone:   0919 8579987 (Susan)

Landline: (+632) 4933005 (Susan)


rooms toilet toilets

Room PicLocation  Map