VAT Ruling No. 028-91
VAT Ruling No. 028-91 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • May 22, 1991
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May 22, 1991 VAT RULING NO. 028-91 Uldarico A. Apura Rm. 2036, V.V. Soliven Shopping Complex, EDSA, San Juan, Metro Manila S i r : This refers to your letter dated April 30, 1991 requesting clarification as to whether or not as a sales agent of Hi-Rise Realty, your commission derived from the sale of real property is subjected to 10% Value-Added Tax and Withholding tax. In reply, please be informed that in VAT Ruling No. 092-89 dated February 23, 1989, this office among others, ruled that commissions earned by individual agents who are not employees of the real estate companies on the sale of real property are subject to 10% Value-Added Tax, if their commissions per twelve month period exceeds P200,000. However, it is not subject to the withholding of VAT. On the other hand, commissions not exceeding P200,000 is subject to the 2% tax prescribed in Section 112 of the Tax Code. LLphil Very truly yours, JOSE U. ONG Commissioner of Internal Revenue By: VICTOR A. DEOFERIO, JR. Deputy Commissioner Officer-In-Charge
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