PHILIPPINE REAL ESTATE and RELATED NEWS in and around the country . . .
.
.

BIR sets venue for large firms’ property-related taxes

Friday, May 22, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]


THE BUREAU of Internal Revenue (BIR) has designated revenue district offices (RDOs) as the venue for the filing of returns and payment of taxes due on transactions involving the property of large taxpayers.

The directive is embodied in Revenue Regulations (RR) No. 5-2009, uploaded on the bureau’s Web site last May 13.

The issuance amended RR 4-2008, which designated the Large Taxpayers’ Service (LTS) offices as the venue for the payment of tax dues on real estate deals sealed by large taxpayers.

RR 4-2008, however, retained RDOs as venue for the payment of real estate taxes of non-large taxpayers.

The latest revenue regulation effectively restored the set-up before Revenue Regulations 4-2008 was implemented.

Confusion

BIR noted that RR 4-2008 caused confusion among taxpayers since some of them were removed from or have just been incorporated into the LTS.

"During the implementation [of RR 4-2008] and with the recent delisting and enlisting of taxpayers who are to be classified as large taxpayers, it has been recognized that such differing rule has caused confusion to those who have been declassified as large taxpayers, as well as those who have to be recently enlisted as such," BIR said.

"The venue for the filing of tax returns and payment of taxes due on real properties is reverted to concerned RDO where the property is located."

The tax code defines large taxpayers as firms with value-added tax paid or payable of at least P100,000 for any quarter of the preceding taxable year; firms with excise tax paid or payable of at least P1 million for the preceding taxable year; firms with annual income tax paid or payable of at least P1 million for the preceding taxable year; or firms with withholding tax payment or remittance of at least P1 million for the preceding taxable year.

The tax bureau said the new regulations should provide uniformity in processing of real-estate transactions since this would cover both large and non-large taxpayers.

It added that the new set-up would enable the BIR to conduct "expedient" ocular inspection on the real properties involved. — Alexis Douglas B. Romero

___________________________________________________________________________________

real estate central philippines
Copyright ©2008-2017