Mesias Accounting and Tax Services

05/03/2026

DON’T CONFUSE CAPITAL GAINS TAX, DONOR’S TAX, AND ESTATE TAX

These three taxes are often confused when people transfer property. But they apply to different situations. Let’s break them down in simple terms.

1. CAPITAL GAINS TAX (CGT)
This tax applies when real property located in the Philippines is sold or transferred for a price.

Example:
You sell your house, land, or condominium to another person.

The law treats the transaction as a sale, so the government imposes Capital Gains Tax equivalent to 6% of the selling price or fair market value, whichever is higher.

Common transactions where CGT applies:
• Deed of Absolute Sale of land or house
• Sale of condominium unit
• Sale of inherited property
• Sale of property between relatives

Important notes:
• The tax is usually paid by the seller, but parties may agree otherwise.
• It must be paid before the title can be transferred to the buyer.
• Documentary Stamp Tax also applies in addition to CGT.

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2. DONOR’S TAX
This tax applies when property is given as a gift without payment.

Example:
Parents transferring land to their child for free.

Since there is no sale, the law considers it a donation, and donor’s tax applies.

Current donor’s tax rate:
6% of the value of the property donated.

Common transactions where donor’s tax applies:
• Deed of Donation of land
• Donation of money
• Donation of shares of stock
• Donation of vehicles or other property

Important notes:
• The donor (the one giving the property) is the one liable for the tax.
• Donations between relatives are not automatically tax-free.

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3. ESTATE TAX
This tax applies when a person dies and leaves properties to heirs.

Before the heirs can transfer the property titles to their names, the estate must first pay estate tax.

Current estate tax rate:
6% of the net estate value.

Common situations where estate tax applies:
• Transfer of land from deceased parents to children
• Settlement of inherited properties
• Extrajudicial settlement of estate
• Judicial settlement of estate

Important notes:
• The estate must settle the taxes before properties can be transferred to the heirs.
• Estate taxes are processed with the BIR before the Registry of Deeds will issue new titles.

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SIMPLE WAY TO REMEMBER

Sale = Capital Gains Tax
Gift = Donor’s Tax
Death = Estate Tax

⸻

If you are planning to sell, donate, or transfer inherited property, it is best to consult a lawyer or tax professional first to avoid costly mistakes and penalties.

For accounting and tax assistance on property transfers, documentation, and settlements, feel free to send a message.

05/03/2026

RECTO LAW vs MACEDA LAW
Know your rights when buying on installment.

Many Filipinos buy property or vehicles through installment payments. However, when the buyer fails to pay, the seller cannot just do whatever they want. The law provides protection to buyers through two important laws: Recto Law and Maceda Law.

Let us simplify them.

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RECTO LAW (Article 1484 of the Civil Code)
This law applies when you buy personal property on installment, such as:

• Cars
• Motorcycles
• Appliances
• Equipment
• Gadgets

In short, movable property.

If the buyer fails to pay installments, the seller has ONLY THREE OPTIONS under the law:
1. Exact fulfillment
The seller may demand payment of the unpaid installments.
2. Cancel the sale
The seller may cancel the contract if the buyer fails to pay at least two installments.
3. Foreclosure of the chattel mortgage
If the property is mortgaged (for example, a car loan), the seller may foreclose the mortgage.

BUT HERE IS THE IMPORTANT PART:

If the seller chooses foreclosure, the seller can no longer collect any remaining balance from the buyer.

This is called the prohibition on deficiency judgment.

Illustration

You bought a car worth ₱1,000,000.

You already paid ₱300,000, but you stopped paying.

The seller repossessed the car and sold it at auction for ₱500,000.

There is still a balance of ₱200,000.

Under the Recto Law, the seller can no longer collect the ₱200,000 deficiency from the buyer if foreclosure was chosen.

This rule prevents abusive practices by financing companies.

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MACEDA LAW (RA 6552)
Also known as the Realty Installment Buyer Protection Act.

This law applies to real estate sold on installment, such as:

• House and lot
• Condominium units
• Residential lots

The law protects buyers who have already paid installments.

Your rights depend on how long you have been paying.

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If you have paid LESS THAN 2 YEARS

You are entitled to:

• A grace period of 60 days to pay the unpaid installment.
• If you still fail to pay after the grace period, the seller may cancel the contract.

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If you have paid AT LEAST 2 YEARS

You have stronger protection.

You are entitled to:
1. Grace Period

One month grace period for every year of installment payments.

Example:

If you paid for 5 years, you are entitled to 5 months grace period.
2. Cash Surrender Value

If the contract is cancelled, the seller must refund at least 50% of the total payments made.

If you paid more than 5 years, the refund increases by 5% per year, up to 90% maximum.

⸻

Illustration

You bought a house and lot worth ₱2,000,000.

You paid installments for 6 years totaling ₱900,000.

If the contract is cancelled:

Minimum refund:

50% of ₱900,000
= ₱450,000

Since you paid more than 5 years, there may be additional percentages depending on the computation.

This prevents developers from simply cancelling the contract and keeping all payments.

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Simple comparison

Recto Law
Applies to cars, appliances, and other personal property sold on installment

Maceda Law
Applies to real estate sold on installment

Recto Law
Seller cannot collect the remaining balance after foreclosure

Maceda Law
Buyer is entitled to refunds and grace periods

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Important Reminder

Many buyers do not know their rights. Sometimes financing companies or developers threaten buyers with actions that are not allowed by law.

If you bought a car, motorcycle, house, or lot on installment and are experiencing problems with the seller or financing company, it is best to know your legal rights before agreeing to anything.

⸻

For tax and accounting consultation and services, message us for appointment.

05/03/2026

FREE webinar to learn about the AITR Filing and Payment for Micro and Small Taxpayers.

06/02/2026

⚠️ 𝗔𝗗𝗩𝗜𝗦𝗢𝗥𝗬: 𝗟𝗜𝗦𝗧 𝗢𝗙 𝗨𝗡𝗥𝗘𝗖𝗢𝗥𝗗𝗘𝗗 𝗢𝗡𝗟𝗜𝗡𝗘 𝗟𝗘𝗡𝗗𝗜𝗡𝗚 𝗣𝗟𝗔𝗧𝗙𝗢𝗥𝗠𝗦

Ipinapaalala na ang mga sumusunod na Online Lending Platforms (OLPs), applications, at websites ay 𝗵𝗶𝗻𝗱𝗶 𝗮𝘄𝘁𝗼𝗿𝗶𝘀𝗮𝗱𝗼 𝗮𝘁 𝗵𝗶𝗻𝗱𝗶 𝗽𝗶𝗻𝗮𝗽𝗮𝗵𝗶𝗻𝘁𝘂𝗹𝘂𝘁𝗮𝗻 na mag-alok, mag-process, o magpautang, alinsunod sa SEC Memorandum Circular No. 10, Series of 2021 na nagpatupad ng moratorium sa mga bagong OLPs simula 02 November 2021:

Google Play Store
1. ZRT Cash: Fast Cash Loan
2. Temple Cash Secure Loans
3. Peso Money - Easy Online Loan
4. Yaman Now - Online Peso Loan
5. PeraMada
6. Fast Pera PH Safe & fast loan
7. USCREDIT
8. VIP Finance - Easy Funding
9. Kapit Cash

Apple Store
1. TalaCredit-loan app quickly
2. Credipillar-Smart credit
3. Kuhacash-loan app Philippines
4. Pesoking-mabilis cash loan app
5. Dolo Loan
6. Atome Peso - Mabilis cash Loan
7. Fund Circle- quick Peso Loan
8. Instant Loan-Mabilis cash Loan
9. Pera Cash -Quick Peso Loan app
11. Peso Now--Loan App Philippines
12. Lucky Loan- happy cash loan app
13. Bilis Peso- Mabilis Cash Loan
14. IPC Loan- mabilis cash & loan app
15. YiuconCredit-loan app & pesoloan

Websites
1. MII cash
2. Bilis Cash
3. Fusecash
4. Flexible Cash Loan

Para sa katanungan, reklamo, o pag-report sa mga ilegal na nagpapautang, mangyaring makipag-ugnayan sa:
📞 14732
📥 SEC iMessage Portal: https://imessage.sec.gov.ph/
💻 SEC Official Website: https://www.sec.gov.ph

Para sa listahan ng mga awtorisadong OLPs, bisitahin ang opisyal na website ng SEC: https://www.sec.gov.ph/lending-companies-and-financing-companies-2/list-of-recorded-online-lending-platforms

Basahin ang kabuuan ng advisory dito: https://www.sec.gov.ph/advisories-2026/advisory-re-unrecorded-online-lending-platforms-2/

06/02/2026

The Securities and Exchange Commission (SEC) has officially transitioned to a digital-first approach for company monitoring. Effective February 2, 2026, all requests for Company Monitoring Clearance must be processed through the new eWatch Company Monitoring System.

Key Takeaways:

👉 Full Online Integration: The system handles everything from creation to submission for One Person Corporations (OPCs), ordinary corporations, foundations, and more.

👉 Portal Access: Applications can be made directly at https://ewatch.sec.gov.ph.

👉 Pre-requisite: Authorized representatives must have an active and credentialed eSECURE account to request clearance.

This is a significant step toward more efficient corporate governance and faster processing times with SEC.

Source: SEC website

06/02/2026

𝗙𝗲𝗯𝗿𝘂𝗮𝗿𝘆 𝟮𝟬𝟮𝟲 𝗗𝗲𝗰𝗹𝗮𝗿𝗲𝗱 𝗮𝘀 𝗧𝗮𝘅 𝗔𝘄𝗮𝗿𝗲𝗻𝗲𝘀𝘀 𝗠𝗼𝗻𝘁𝗵

In line with President Ferdinand R. Marcos, Jr.’s declaration of the month of February of every year as “Tax Awareness Month” under Proclamation No. 486, s. 2024, the Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 9-2026 to formally guide and strengthen the nationwide observance for February 2026.

As the country’s premier revenue-generating agency, the BIR leads a coordinated, month-long information and education campaign aimed at improving public understanding of taxpayer registration requirements, the filing of applicable tax returns, and the importance of paying the correct taxes on time.

Anchoring the tax campaign is the BIR’s year-round theme, “Mahusay na Serbisyo, Katumbas ng Buwis Mo,” which reflects the Bureau’s commitment to deliver excellent service to taxpayers with integrity and professionalism in order to collect taxes for nation-building.

Through RMC No. 9-2026, the BIR seeks to: (1) enjoin all agencies of the government, local government units, academic institutions, state universities and colleges, non-government organizations, multi-sectoral partners, and the private sector at the national and local levels to actively participate and support the activities that promote tax awareness; and (2) encourage BIR External Partners to initiate and undertake activities that will help enhance taxpayers’ voluntary compliance, particularly the timely filing and payment of correct taxes.

In accordance with the said issuance, the BIR encourages its Revenue Regions / District Offices and External Partners to disseminate BIR-approved tax awareness materials through physical displays and digital platforms; repost official BIR tax advisories and filing reminders; and organize tax seminars, briefings, contests, media engagements, and other information and education initiatives in coordination with the BIR. The participation of BIR officials and personnel as resource speakers in partner-led activities is likewise encouraged.

To ensure message consistency and accuracy, the BIR advises all concerned agencies and organizations to use only the official 2026 Tax Awareness Month materials released through the BIR’s official website and social media channels.

The 2026 observance is aligned with the BIR’s DARES reform agenda, which underscores Digital and Data Transformation, Audit Reform and Accountability, Revenue Collection and Base Protection, Employee Empowerment and Welfare Promotion, and Service Excellence and Stakeholder Engagement. Tax Awareness Month serves as a platform to translate these reforms into practical, citizen-focused initiatives by making tax information more accessible, consistent, and responsive to taxpayer needs.

05/02/2026

𝟮𝟬𝟮𝟲 𝗜𝗻𝘁𝗲𝗿𝗮𝗰𝘁𝗶𝘃𝗲 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗧𝗮𝘅 𝗖𝗮𝗹𝗲𝗻𝗱𝗮𝗿 𝗡𝗼𝘄 𝗔𝘃𝗮𝗶𝗹𝗮𝗯𝗹𝗲

The BIR has launched its first-ever Interactive Digital Tax Calendar for 2026, giving taxpayers easy, real-time access to filing deadlines, tax reminders, and quick links, all in one platform.

𝗕𝗜𝗥 𝗹𝗮𝘂𝗻𝗰𝗵𝗲𝘀 𝗳𝗶𝗿𝘀𝘁-𝗲𝘃𝗲𝗿 𝗜𝗻𝘁𝗲𝗿𝗮𝗰𝘁𝗶𝘃𝗲 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗧𝗮𝘅 𝗖𝗮𝗹𝗲𝗻𝗱𝗮𝗿 𝗳𝗼𝗿 𝟮𝟬𝟮𝟲

The Bureau of Internal Revenue (BIR) has officially launched its first-ever interactive digital Tax Calendar for 2026 with the issuance of Revenue Memorandum Circular No. 110-2025.

Said digital tax calendar, which is accessible online through the BIR website (www.bir.gov.ph), is an innovative tool designed to help taxpayers and tax practitioners to easily track, manage, and comply with the Bureau's tax return filing and tax payment deadlines.

To enhance the user experience, the digital tax calendar combines functionality with visual clarity through its user-friendly interface featuring clickable dates showing tax reminders for the day, and quick links to BIR Forms, BIR Directory, List of Authorized Agent Banks and BIR social media accounts.

𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗶𝗼𝗻 𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄
🏠 𝗛𝗼𝗺𝗲 – shows full-year view of all twelve months
📅 𝗧𝗮𝘅 𝗗𝗲𝗮𝗱𝗹𝗶𝗻𝗲𝘀 – contains daily tax reminders
🔗 𝗟𝗶𝗻𝗸𝘀 – quick links to BIR forms, BIR Directory, List of Authorized Agent Banks per Revenue District Office and BIR official social media accounts
📄 𝗙𝗼𝗿𝗺𝘀 – List of BIR Forms (in PDF format) specifying the frequency and deadline for filing of each form
🧭 𝗚𝘂𝗶𝗱𝗲 – instructions on how to navigate the tax calendar️
☎️ 𝗖𝗼𝗻𝘁𝗮𝗰𝘁𝘀 – shows the BIR National Office contact details

"The development of the interactive digital tax calendar is part of the BIR's digitalization efforts to provide taxpayers and other concerned stakeholders with easy access to the daily tax reminders and quick links to the BIR Forms that they need to file. We encourage all taxpayers to access the interactive digital Tax Calendar and use it as their Guide to Tax Compliance", said Commissioner Charlito Martin R. Mendoza.

Taxpayers may access the 2026 Interactive Digital Tax Calendar at https://tinyurl.com/2026BIRDigitalTaxCalendar

05/02/2026

BIR Update: Revenue Memorandum Circular (RMC) No. 9-2026

Clarifying the Tax Treatment, Documentation Requirements, and Filing of Return and Payment of Donor's Tax for Donations Consisting Purely of Cash

24/01/2026

📢 𝐁𝐈𝐑 𝐔𝐩𝐝𝐚𝐭𝐞 | 𝐑𝐌𝐂 𝐍𝐨. 𝟓-𝟐𝟎𝟐𝟔

🔍 𝑳𝑶𝑨 𝑽𝒆𝒓𝒊𝒇𝒊𝒆𝒓 𝒏𝒐𝒘 𝒂𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆 𝒗𝒊𝒂 𝑹𝑬𝑽𝑰𝑬

The BIR has officially launched an LOA (Letter of Authority) verification feature through REVIE, allowing taxpayers to easily check the authenticity of an LOA issued by the Bureau.

✅ Verify if an LOA is valid
✅ Confirm authorized revenue officers
✅ Protect your business from fake or unauthorized audits

💡 Tip: Always verify an LOA before accommodating any tax audit or request. Stay compliant. Stay protected.

22/01/2026

Noting that questions on final pay topped were often raised by workers last year, the Department of Labor and Employment (DOLE) on Wednesday reminded employers to release the final pay and certificate of employment (COE) of their employees on time.

Labor Secretary Bienvenido Laguesma warned that employers who delay or withhold final pay and employment records “are breaking the law and could face complaints or penalties.”

Workers who do not receive their final pay or COE on time may reach out to the DOLE Hotline 1349 from Mondays to Fridays, 6 a.m. to 10 p.m.

They can also email [email protected] or message the official DOLE page.

𝐑𝐄𝐀𝐃: 𝐅𝐢𝐧𝐚𝐥 𝐩𝐚𝐲, 𝐂𝐎𝐄 𝐦𝐮𝐬𝐭 𝐛𝐞 𝐫𝐞𝐥𝐞𝐚𝐬𝐞𝐝 𝐨𝐧 𝐭𝐢𝐦𝐞 – 𝐃𝐎𝐋𝐄


The Department of Labor and Employment (DOLE) reminded employers that they must release workers’ final pay and Certificate of Employment (COE) on time, as stated in Labor Advisory No. 06, Series of 2020.

𝘊𝘭𝘪𝘤𝘬 𝘵𝘩𝘦 𝘭𝘪𝘯𝘬 𝘪𝘯 𝘵𝘩𝘦 𝘤𝘰𝘮𝘮𝘦𝘯𝘵𝘴 𝘴𝘦𝘤𝘵𝘪𝘰𝘯 𝘧𝘰𝘳 𝘵𝘩𝘦 𝘧𝘶𝘭𝘭 𝘴𝘵𝘰𝘳𝘺.

21/01/2026

On-the-job Training!

We are looking for interns to join our Company during this peak season:

Requirements for the Role

Currently in their 2nd to 4th Year of undergraduate College/University related in Tourism and Accounting

Must be allowed by their University or College to render at least 300 internship hours as fulfillment of their OJT requirement.

Must work either on a virtual or hybrid arrangement as confirmed with their University of College’s OJT office.

Able to work independently or as part of a team.

Able to demonstrate integrity, leadership, and teaming.

Strong work ethics and attention to detail.

Willing to submit the following documents:
1. MOA from school
2. Valid government or school ID
3. Letter of Endorsement from professor or Dean
4. Waiver from parent/guardian
5. CV

We will not process incomplete documents.

Feel free to message us.

Thanks,

Mesias Accounting and Tax Services