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Lease of Real Property is Not Subject to the 4% Percentage Tax

BIR Ruling No. 335-87 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Nov 3, 1987

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November 3, 1987 BIR RULING NO. 335-87 161 (3) (aa) 000-00 335-87 Gentlemen : In reply to your letter dated January 7, 1987, please be informed that for leasing your real property located at Mayon corner Retiro St., Quezon City, you are not subject to the 4% percentage tax imposed by Section 170 of the Tax Code. However, you are considered a real estate dealer subject to the fixed tax imposed under Section 161(3)(aa) of the same Code. aisadc Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner

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