Taxability of Real Estate Appraisers

October 5, 1966 BIR RULING NO. 041-66 Mr. Jaime P. Nodal R-329 Madrigal Bldg. Escolta, Manila S i r : This refers to your letter dated July 26, 1966 stating the following: "Having read in the Manila Times in today's issue that the President of the Institute of Philippine Real Estate Appraisal is advocating that "only the services of licensed real estate appraisers be availed of in the valuation of real estate properties sold, leased, exchanged or mortgaged to or by the government, or any of its instrumentalities, corporations and institutions", even to the exclusion of licensed real estate brokers, I have the honor to request information as to whether such supposed "licensed real estate appraisers" are within the contemplation of any occupation, calling or profession taxable under the Internal Revenue Code, and if so, what is the amount of privilege or professional tax that a real estate appraiser is bound to pay annually before he may exercise his calling. "I understand that a real estate broker pay not only the license fee to the Bureau of Commerce but also the privilege tax for the practice of his occupation, aside from percentage tax on his monthly commission, plus income tax. On the other hand, I am not aware of any law taxing a real estate appraiser before he may practice his so-called profession. He does not even pay any percentage tax such as that being paid by a real estate broker." In reply thereto, I have the honor to inform you that "real estate appraisers" are not among those occupations taxed under Section 182(B) of the Tax Code. However, in accordance with Administrative Order No. 60-1 of the Bureau of Commerce, a "real estate appraiser" is "any natural person who renders services to the public as an expert of real estate values on real estate properties for a fee, compensation or other valuable consideration". "Real estate appraisers" may, therefore, be considered as independent contractors subject to the annual fixed tax of P20.00 and to the 3% percentage tax on gross receipts pursuant to Sections 182(A) (1) and 191, respectively, of the Tax Code. prcd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue