Real Estate Commission Calculator
Calculate gross and net commission with broker/agent splits, 5% CWT, 12% VAT, and expanded withholding tax. Built for PRC-licensed Philippine brokers under RA 9646.
VAT Registered Broker?
Applies 12% VAT if annual gross receipts exceed ₱3M
Gross Commission
₱500,000.00
5% of ₱10,000,000.00
CWT (5%): Creditable Withholding Tax deducted at source by the payor. Creditable against annual income tax.
EWT (2%): Expanded Withholding Tax on service fees when TCP exceeds ₱3,199,200 (BIR threshold).
VAT (12%): Applies if broker's annual gross receipts exceed ₱3,000,000. This is output VAT charged to the client.
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Commission Calculator FAQ
Common questions about real estate commissions in the Philippines
For primary sales (developer to buyer), commissions typically range from 5-7% of the Total Contract Price (TCP). For secondary/resale transactions, the standard is 3-5% of TCP. These rates are negotiable between the broker and the client. Under RA 9646 (RESA Law), only PRC-licensed real estate brokers and their accredited salespersons may receive commissions.
The 5% Creditable Withholding Tax (CWT) is deducted at source by the payor (developer or seller) from the broker's commission before payment. This CWT is creditable against the broker's annual income tax liability, meaning it reduces the total tax owed at year-end. It is governed by BIR Revenue Regulations No. 2-98 as amended.
The split between the brokerage firm and the selling agent is set by their agreement. Common splits in the Philippines are 60/40 (brokerage/agent) or 50/50. Top-performing agents may negotiate higher splits (40/60 or 30/70 in their favor). The brokerage share covers office overhead, marketing, and administrative support.
VAT (12%) applies when the broker's annual gross receipts exceed ₱3,000,000. If VAT-registered, the broker adds 12% output VAT on top of the commission, which is remitted to the BIR. If annual gross receipts are below ₱3M, the broker is subject to 3% percentage tax instead under the TRAIN Law.
When the Total Contract Price exceeds ₱3,199,200 (the VAT threshold for real property), an additional 2% EWT may be applicable on the professional/service fees. This is separate from the 5% CWT and depends on the specific BIR classification of the commission payment.