BIR Ruling No. 424-61

October 9, 1961 BIR RULING NO. 424-61 Messrs. Nubla, Pedrosa & Associates Attorneys-at-Law 4th Floor, Leyba Bldg. 381 Dasmarias corner David, Manila Gentlemen : In reply to your letter dated August 15, 1961, addressed to the Treasurer of the Philippines and endorsed to this Office, I have the honor to inform you that an owner of an apartment rented or offered to rent for an aggregate amount of P4,000.00 or more per annum is a real estate dealer subject to the real estate dealer's annual fixed tax imposed in Section 182 (A)(3)(s) of the National Internal Revenue Code. Before commencing business, he must pay the real estate dealer's fixed tax of P150.00. Thereafter and for subsequent years, the rate of tax due shall depend upon the total amount of rentals derived during the preceding calendar year as follows: llcd P150.00 if the rentals does not exceed P10,000.00; P300.00 if it exceeds P10,000.00 but does not exceed P30,000.00; and P500.00 if it exceeds the last mentioned amount. Said tax is payable, at the option of the taxpayer, annually on or before the 20th of January, or semi-annually on or before the 20th of January and July. On or before commencement of the business, he should register with the provincial revenue officer or collection agent, in case no provincial revenue officer is assigned to the place where the business is conducted, within 10 days after securing the privilege tax receipt, his name or style, place of residence and the place where such business is carried on. If it is a firm, the names and residences of the various persons constituting the same should also be registered. He is required to issue invoices or receipts and keep books of accounts in accordance with Sections 204 and 334 of the Tax Code, in relation to Revenue Regulations No. V-1, otherwise known as the Bookkeeping Regulations. Before using, however, those invoices or receipts and books, the same should first be presented for approval and registration. cdll Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue