By Zinnia B. Dela Peña (The Philippine Star) | Updated June 17, 2013 - 12:00am
MANILA, Philippines -The Bureau of Internal Revenue (BIR) has tightened its watch on real estate brokers and agents to include them among professionals required to withhold taxes to the government.
According to Revenue Regulations 10-2013 issued May 2, licensed property practitioners should automatically remit taxes worth 15 percent of their gross income per year if the latter does exceeds P720,000.
The tax rate is reduced to 10 percent if the income is higher, BIR said.
Likewise, commissions earned by unlicensed real estate service practitioners will be charged with 10-percent withholding tax. These brokers are those who are not registered with the Professional Regulation Commission.
The new regulation shall take effect this month and cover income payments to certain brokers and agents to be paid or payable starting June 1.
Income tax payments should be remitted by next month, the tax bureau said.
BIR officials could not be immediately reached for comment on the new regulations.
The BIR, which accounts for nearly three-fourths of tax revenues, has been engaged on tightening tax administration measures to address loopholes in and recoup additional revenues.
It has also been filing numerous tax evasion cases, mostly against professionals, under its Run After Tax Evaders program.