BIR Ruling No. 083-82

March 15, 1982 BIR RULING NO. 083-82 53-f 000-00 083-82 Atty. Juan P. Casten 2153 Narra Road United Paraaque-I Paraaque, Metro Manila S i r : This refers to your letter dated August 18, 1981 requesting information whether your client is authorized to withhold 5% from the commission of real estate brokers. It is represented that your client, who is an executive of a local company is selling his parcel of land at United Paraaque V, Paraaque, Metro Manila worth Fifty Three Thousand (P53,000.00) pesos; that he is not engaged in any trade or business; that to facilitate the sale of his lot, he employed the services of a licensed real estate broker, who normally charges five (5%) percent of the selling price of the property as broker's fee. In reply, please be informed that under the foregoing facts, your client is not making payment of the real estate broker's commission in connection with his trade or business. Accordingly, he is not required to deduct and withhold the 5% withholding tax. [Section 2(a), Revenue Regulations No. 13-78, as amended by Revenue Regulations No. 61-79, implementing Section 53(f) of the Tax Code, as amended by P.D. No. 1351] aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner