BIR Ruling

May 2, 1969 Mr. Andres V. Salamat 24 Nevada Street Quezon City S i r : This refers to your letter dated March 31, 1969, requesting information as to whether or not you are exempted from the payment of real estate dealer's fixed tax when the gross annual rentals of your property amount only to P7,000.00. In reply, I have the honor to inform you that under Section 194(s) of the Tax Code, a person leasing or renting property for an aggregate amount of P4,000.00 or more a year is considered as engaged in business as real estate dealer and as such, subject to the real estate dealer's fixed tax imposed by Section 182(A)(3)(s) of the same Code, the amount of which is P150.00, if the gross annual rental received does not exceed P10,000.00; P300.00 if it exceeds P10,000.00 but does not exceed P30,000.00; and P500.00, if it exceeds P30,000.00. As your gross annual rental income amounts to P7,000.00, you are a real estate dealer subject to the annual fixed tax of P150.00. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue