Payment of the Real Estate Dealer's Fixed Tax

April 5, 1960 BIR RULING NO. 189-60 Miss Felisa Icasiano 1347 Pedro Guevarra M a n i l a M a d a m : Reference is made to your letter dated March 30, 1960, which stated the following: cdi "I offered for rent 4 apartments as of January 1, 1959 at P100.00 a month, or P4,800 a year. On January 27, 1959 I paid by C-B privilege tax of P150.00 and a compromise of P10.00 for late payment. During the year 1959 each apartment was actually rented for P100.00 a month but some of the aforesaid apartments were not occupied at one time or another. Consequently, I actually realized an annual rental income of P3,220 only during the whole year. It may be stated in this connection that as of January 1, 1960, my four apartments are actually rented at P100.00 a month except one apartment which is being offered and will be offered at P100.00 a month. Accordingly, for the 1960, my apartments will be offered for rent at P4,800." You now ask this Office whether or not you are still liable for the payment of the real estate dealer's fixed tax for the year 1960, it appearing that the aggregate annual income derived from rentals did not reach P4,000 during the preceding year, pursuant to Section 178 of the Tax Code in relation to Sections 182(3)(e) and 194(e) thereof. In reply thereto, I have the honor to inform you that inasmuch as the rental income derived by you in 1959 was below P4,000, you are not subject to tax for the year 1960. lexlib Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue