BIR Ruling No. 147-84

September 3, 1984 BIR RULING NO. 147-84 53-f-28-82-147-84 Gentlemen : In reply to your letter dated December 19, 1983, please be informed that for leasing your building to the government, you are a real estate dealer subject to the fixed tax imposed by Section 192(3)(aa) of the Tax Code. The money payments to you are not subject to the 3% contractor's tax imposed by Section 205 of the Tax Code; hence said money payments are not subject to the withholding provisions of Republic Act No. 1051 as implemented by Revenue Regulations No. 4-83 dated March 15, 1983. However, for income tax purposes, the rental income you receive shall be subject to the 5% expanded withholding tax when the gross rental or other payment exceeds P500.00 per contract, or payment, whichever is greater, under Section 1(c) of the Revenue Regulations No. 13-78, as amended by Revenue Regulations No. 6-79 implementing Presidential Decree No. 1351, now Section 53(f) of the Tax Code, as amended. For this purpose, the government offices concerned which are making income payments to you are constituted as withholding agents. [Sec. 2(c), Revenue Regulations No. 13-78, as amended.] Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner