yourlifeisatrip

by B.J. Stolbov 

The family, after doing without and saving for years and years, had finally bought a small farm of less than a hectare for 900,000 pesos. They had negotiated the price with the owner, an absentee landlord. He had wanted 1,000,000 pesos; the family had only 800,000 pesos. After long and difficult discussions, they agreed to a price of 900,000 pesos, not in installments, but paid as one sum. A retired judge officially wrote up the paperwork.  Both parties signed the bill of sale. 900,000 pesos were paid in full.

[Note: the currency exchange rate is 1 US $ = 43 Philippine pesos.  So, for a house and a hectare, less than 2.5 acres, the price is almost $21,000.]

As is necessary in such transactions, there are additional local fees: a Documentary Stamp, a Certification for the Bureau of Internal Revenue, and, finally, the largest, a Sales Tax.

In charge of the family finances is Maria, a pharmacist, who is good with numbers and knows how to run a business.  With Jerold, her brother-in-law, a large, friendly man, a mechanic and driver, who works for the local government and knows how it works, Maria goes to the Municipal Office to register the land.  At the Assessor’s, the land is again assessed.  It is from this assessed value that the sales tax to pay to the government is determined.