Payment of the Fixed Tax Before Engaging in Real Estate Dealer Business

July 28, 1959 BIR RULING NO. 354-59 The Delgado Brothers, Inc. P. O. Box 292, Manila Gentlemen : With reference to your letter dated February 13, 1959, I have the honor to inform you that for leasing your building to Theo H. Davies & Co., Far East Ltd., in October, 1957 for a consideration in excess of P4,000.00 per annum, you should have paid the initial rate of P150.00 as real estate dealer's fixed tax for that year, pursuant to section 182 of the Tax Code, as amended by Republic Act No. 1612 and as implemented by General Circular No. V-227. Thereafter, the amount of fixed tax payable by you is dependent upon the amount of rentals actually received by you during the preceding year. For your failure to pay the fixed tax before engaging in business as a real estate dealer, you are liable for the payment of a compromise penalty in an amount equivalent to P10.00 for every capital investment of P2,500.00 or fractional part thereof, pursuant to General Circular No. V-240, dated March 15, 1957. aisadc Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue