BIR Ruling

February 26, 1970 Polo Realty Corporation 502 Martinez Bldg. Dasmarias, Manila Attention: Mr . Otelo H . Villegas Accountant Gentlemen : This refers to your letter dated December 17, 1969 requesting enlightenment on the provision of Section 45 of House Bill No. 17839 which proposed to insert Section 195-A to the Tax Code relative to the imposition of a 2% tax on the gross sales and/or rental income of real estate dealers. In reply, I have the honor to inform you that the foregoing provision of House Bill No. 17839 which became Republic Act No. 6110 was vetoed by the President. In vetoing this particular proposal, the President said: "For the past period of one year, increases in assessments and taxes (additional 1%, R.A. No. 5447, Educational Fund Act) have been effected which, with this seemingly insignificant tax of 2%, would make taxes on real estate dealers unduly burdensome." "No provision is made for combination residential and commercial properties which would make implementation problematic." Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue