BIR Ruling

July 18, 1972 Manila Hilton Manila Attention: Mr . Gonzalo Villarin Gentlemen : This refers to your letter dated July 15, 1972 requesting in effect information on the tax incidences of your intended project to offer for lease during periods of low occupancy rooms for apartment or office use under contracts for six months to one year. In reply, I have the honor to inform you as follows: For leasing rooms to be used as apartments or offices, you shall be considered real estate dealers subject to the fixed tax prescribed by Section 182(A)(3)(aa) of the Tax Code. The rentals you will derive from the lease of the rooms shall not be considered as part of your receipts for purposes of the 3% tax prescribed by section 191(14) of the Tax Code. The receipts you shall issue to your tenants which you will appropriately differentiate and distinguish from the receipts you issue to hotel guests shall not be subject to documentary stamp tax. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue