Payment of the Real Estate Dealer's Fixed Tax

April 15, 1959 BIR RULING NO. 205-59 Mr. T. H. George Wang P. O. Box 2173 M a n i l a S i r : In reply to your letter dated February 1, 1959, requesting information as to whether or not a real estate dealer whose aggregate annual income from his business is below P4,000 is required to pay the real estate dealer's fixed tax, I have the honor to inform you as follows: Prior to September 22, 1950, a person is considered a real estate dealer if he is engaged in the business of leasing or sub-leasing real property regardless of the amount of his annual rental income. From September 22, 1950 to August 23, 1956, a person is considered a real estate dealer by the mere fact that he is a lessor or sublessor of real property for the aggregate amount of P3,000 or more a year. From August 24, 1956, when Republic Act No. 1612 became effective, up to the present, a person is considered a real estate dealer if he derives an annual rental income of P4,000 or more as a lessor or sublessor of real property. Every person considered a real estate dealer in accordance with the observations mentioned above must pay the real estate dealer's fixed tax. Real estate dealers should keep and use the books of accounts required under section 334 of the Tax Code and the Bookkeeping Regulations. These books should be presented to this Office for approval and registration prior to their use. cdtech Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue