BIR Ruling [DA-210-99]

April 5, 1999 BIR RULING [DA-210-99] National Real Estate Association, Inc. Suite 16, Maya Building EDSA, Cubao Quezon City Attention: Mr . Fernando M . Miranda, Jr . President Gentlemen : This refers to your letter dated December 21, 1998 requesting for your recognition as creditable withholding tax accreditor relative to the implementation of the withholding tax provisions of the Tax Code of 1997. In reply, please be advised that Section 4-A of Revenue Regulations No. 8-98 provides that only the HLURB or HUDCC are recognized to certify whether a taxpayer is habitually engaged in the real estate business for purposes of the availment of lower expanded withholding tax rate on real property transactions, deleting for this purpose the participation of private real estate association which were then found in the old regulations. The rationale for the privilege of a lower withholding tax rate is to support the national urban development and low-cost housing programs of the government of which the said two government agencies are the policy implementors. In view of the above, we regret to deny your request. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue