BIR Ruling

December 6, 1972 Mrs. Gorgonia Ibarra Nisa Hotel, Tagbilaran City M a d a m : This refers to your letter dated October 21, 1972 requesting information as to whether or not as owner of a rented agricultural land and apartment you are subject to the 3% tax. In reply, I have the honor to inform you that as owner of a rented building and agricultural land you are not subject to the 3% contractor's tax. However, you are a real estate dealer under Section 194(s) of the Tax Code. As such, you are subject to the annual fixed tax prescribed in Section 182(A) (3) (aa) of the Tax Code, the rate of which is based on your actual income during the preceding calendar year as follows: (a) P150.00 if the annual income is over P4,000 but does not exceed P10,000.00; (b) P300.00 if the annual income exceeds P10,000 but does not exceed P30,000; (c) P500.00 if the annual income exceeds P30,000 but does not exceed P50,000; (d) P1,000 if the annual income exceeds P50,000. However, if said agricultural land is a sugar land, as owner thereof, you are not considered a real estate dealer for purposes of the fixed tax imposed under Section 182(a) (3) (aa) of the Tax Code. aisadc Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue