Amount of Rental to One Year or One Month is Subject to Tax if the Gross Rental or Other Payment Exceeds P500.00, per Contract or Payment, Whichever is Greater
BIR Ruling No. 012-82 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jan 19, 1982
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January 19, 1982 BIR RULING NO. 012-82 53-f 000-00 012-82 Rural Bank of Alfonso, Inc. Alfonso, Cavite Attention: Mr . Antonio R . Crooc Bookkeeper (For the Manager) Gentlemen : In reply to your letter March 20, 1979, I have the honor to inform you that, under Section 1 (c) of Revenue Regulations No. 13-78, as amended by Revenue Regulations No. 6-79, prescribing the 5% withholding tax on rentals, the period covered by the payment is not material. In other words, whether the amount of rental corresponds to one year or one month, the same is subject to the withholding tax if the gross rental or other payment exceeds P500.00, per contract or payment, whichever is greater. Very truly yours, RUBEN B. ANCHETA Acting Commissioner
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