Tax Liability of an Owner of Rental Property or Properties Rented or Offered to Rent

September 30, 1959 BIR RULING NO. 483-59 Mr. Nicanor Sarmiento Tagbilaran, Bohol S i r : In answer to your letter dated September 2, 1959, I have the honor to inform you that a person holding himself out as an owner of rental property or properties rented or offered to rent for an aggregate amount of four thousand pesos or more a year is a real estate dealer. At the commencement of the business as such real estate dealer, you are required to pay the initial rate of P150.00 as fixed tax, pursuant to section 182 A(3)(s) of the Tax Code. Thereafter, the annual fixed tax shall be based on your actual rental income during the preceding calendar year, illustrated as follows: aisadc Actual Income Rate of Tax P4,000.00 P10,000.00 P150.00 10,001.00 30,000.00 300.00 30,001.00 up 500.00 Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue