Trust Administration

Capital Gains Tax Escrow Account

The Capital Gains Tax Escrow Account is an Escrow Arrangement wherein BDO-Trust acts as an intermediary between the Bureau of Internal Revenue (BIR) and a Seller/Transferor of property for the proper disposition of the amount held in escrow in accordance with Republic Act 8424 Section 24 (D)(2).

BDO-Trust, as the Escrow Agent, will see to it that the deposit in escrow, equivalent to the capital gains tax due from the sale of the Seller/Transferor's principal residence, will be released to the Seller/Transferor only when the condition of acquiring a new principal residence within the prescribed eighteen (18) month-period is met. Otherwise, the Escrow Agent will release the escrow amount to the BIR as payment of the Capital Gains Tax. While the Escrow Agent is holding custody of the funds, the funds will be invested in an interest bearing account that takes advantage of the best investment options available.

An individual may avail of exemption from the payment of the capital gains tax subject to compliance with the following conditions:

The six percent (6%) capital gains tax due from the sale of an individual's principal residence should be deposited in an interest bearing account with an Authorized Agent Bank under an Escrow Agreement
Proceeds from sale should be fully utilized in acquiring or constructing a new principal residence within eighteen (18) calendar months from date of sale
The tax exemption may be availed of by an individual only once in ten (10) years

Benefits

Sellers/Transferors are provided with a bank facility to implement the exemption from paying the six percent (6%) capital gains tax due on the proceeds from sale of the principal residence, provided the conditions are met
Allows the deposit, representing capital gains tax due, to earn interest during the period when the terms of the agreement are still being completed
The deposit in escrow will only be released to the rightful party/ies concerned

Eligibility

Individuals selling their principal residence; the tax exemption does not apply to corporations
Properties located within the area of an RDO-accredited BDO Branch

Revenue District Officer (RDO) accredited BDO Branches

Only the following RDO-accredited BDO Branches can accept depositors for the Capital Gains Tax Escrow Account:

Bacoor
Echague
Harrison Plaza
Head Office
Makati Ave.
Novaliches
Pasay Road
Pasig
SM Megamall Bldg. A
Sta. Mesa
Sto. Domingo

Custodian Services

As custodian, let Banco de Oro safe keep and preserve your property, such as important documents and valuables. BDO will keep all properties and items in custody, collect interest or dividend income, if any, and in due time return them upon the owner's order or instructions.

Escrow Agency Services

Banco de Oro oversees your deals from start to finish, the bank acts as an escrow agent to protect the interests of the contracting parties while conditions upon which their contract is contingent are being fulfilled. Avoid taking unnecessary risks. Call us now!

Living Trust

For those who want to preserve and earn from their properties and eventually distribute the properties to their beneficiaries, avail of the Banco de Oro Living Trust. It is a type of personal trust used as an initial step for estate planning which covers the administration, investment and disposition of your assets.

Trust Agreement

For individuals or corporations that cannot devote their full time in managing their investment portfolio, or those who wish to be assured that their properties will accrue to the benefit of their heirs and beneficiaries, Banco de Oro will act as trustee to manage and administer your properties (cash and securities).

For more information, please call our Trust Department at 632-1083 or visit Banco de Oro's Trust Banking Group.