[bauer]

finance123 & freefront,

Even CPAs' nahihirapan to understand our complicated tax system. Kahit ituro malamang sa hindi marami pa rin ang may sakit ng ulo sa taxes pero tama kayo dapat kahit basic ng tax eh ituro talaga.

Ang BIR natin parang supreme court, every change of admin nag change rin pati ang implementing rules yan ang reklamo ng foreign investors sa atin.  Bago liders, bago rin ang interpretation sa rules pero ang batas natin mind you luma naman.

[finance123]

They make things complicated of course para tumaas ang demand ng mga accountant, lawyers, more corruption sa govt.

[Bp22estafa]

Adjusted threshold of VAT exemption from Bir for residential rental properties effective Jan. 1, 2012

The lease of a residential units which is PHP12,800 and below shall also be exempt from VAT effective January 1, 2012.

If a person’s gross annual receipts/sales on the sale or lease of goods or properties or performance of services other than those mentioned in Sec. 109 of the Tax Code does not exceed PHP1,919,500.00, he shall be subject to 3% percentage tax instead of the 12% VAT.

[RosendoCuyasen]

Good source of Rental Taxes in the Philippines.. I think you don't need this if that house is not registered in Bureau of Internal Revenue..

[bauer]

Good source of Rental Taxes in the Philippines.. I think you don't need this if that house is not registered in Bureau of Internal Revenue..

please clarify in detail to avoid misconception of your statement.

[lady_burberry]

I hope this topic is still active.

We entered into a contract of lease for office space. In the contract, it says that we have to pay  monthly rental of P90,000.00 ( exclusive of taxes). Based on my understanding, I will pay 90,000 plus the 12% VAT ( minus 5% witholding tax.) Tama ba? 

[bauer]

^ yes it's correct and you need to get a witholding tax certificate from the lessor so that you can deduct it from your own tax report to BIR.