Tax Imposed on the Rentals Received by the Lessor

June 30, 1958 BIR RULING NO. 347-58 MEMORANDUM FOR : The Chief, Investigation Division B.I.R., Manila This refers to the additional residence tax case of Mr. Tomas de Ocampo covering the period from 1954 to 1957. Upon a reinvestigation of said case, it was found out, among other things, that Mr. de Ocampo had paid additional residence taxes based on the assessed value of his real property, as well as on the gross receipts or earnings derived from his business, and that included in those receipts or earnings were the rentals received by Mr. de Ocampo for the lease of his buildings. Rentals received by the lessor for the lease of his real property, such as buildings, are "receipts or earnings" derived by the lessor from his business within the purview of Section 1 (b) of the Residence Tax Law, subject in a proper case to the additional residence tax. The fact that the corresponding residence tax has already been paid on the basis of the assessed value of the real property leased does not exempt the rentals from the tax. Please be guided accordingly. LLjur (SGD.) JOSE P. TRINIDAD Acting Commissioner of Internal Revenue