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VAT and Taxes on "House for Rent" rental business

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Thomas

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Reply #60 on: May 06, 2017, 02:57 AM
I repeat, who is the tax payer?
Why, instead of telling it?   Annoying as often... 
Thanks, wilch23.
I will be the tax payer. 
Why do you thank him, when he didn't tell you the answer??    :hihi:

I don't remember the details (because I will not be in that situation) but actualy it's so crazy so it demand TENNANTS to handle some tax payments on behalf of the landlord!!!
Is VAT a valid deduction from taxable income?
I don't know details when it's rental business, but in some other cases you PAY it DIRECT,
but the DECUCTIONS are SPREAD over several following years  = DELAYED much    :(


Allan

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Reply #61 on: May 06, 2017, 08:01 AM
VAT deduction is possible if you have registered as a VAT taxpayer (income of over 1.9M?? a year). derived from the rental/leasing income.


Currently, I and my wife are purely salary-based employees. Bale, this would be our first time to be mixed income earners. We are filing BIR form 2316 (substituted filing by our employer).


Even if income from rental does not reach P1.9M a year, can I register as a VAT taxpayer? Does this mean that I have to secure a business name/DTI certificate?


Allan

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Reply #62 on: May 06, 2017, 08:55 AM
BIR would like you register as a 3% taxpayer instead of the 12% vat system. If you make 100,000 a month you must pay 3,000 to the BIR and you cannot deduct.  But before the BIR you must first get the certificate from DTI.

BIR requires that you file and pay monthly the 3% or the 12% VAT. And a yearly fee under form 0605. And if you have business, you must file and pay updated quarterly income tax-form 1701Q. That is some paperwork that you have to do.

You and your partner work very hard to earn more and then to pay more taxes. Very commendable.  But in the process, there are other considerations like neglect of quality family bonding time- difficult to monetize, injury or sickness from overworking-with medical expenses not tax deductible?


Thanks for this, chris. Very helpful 👍
Well, only two things are certain, death and taxes. I have a son now. The objective is to transition from a day job to passive income. So I can spend more time with my boy than with my boss 😂


wilch23

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Reply #63 on: May 06, 2017, 10:23 AM
Thanks, wilch23.
I will be the tax payer. I don't intend to have a separare business name nor apply for DTI Certificate.
Is VAT a valid deduction from taxable income?

Welcome sir, I asked who is the taxpayer kasi nga legally it can't be a person. A person can have a business under his person only as a professional rendering SERVICE. Kung dalawa, partnership na yan, so DTI reg is required.





Rental income is derived from a business, i.e. real estate business.
A business will have to be registered with DTI , then with the local govt, BIR, SSS, etc etc

« Last Edit: May 06, 2017, 10:29 AM by wilch23 »


wilch23

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Reply #64 on: May 06, 2017, 10:30 AM
Bakit meron nag-mamarunong mali mali naman ang posts?
Ano ba naman yan?


rodschroth

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Reply #65 on: Jun 07, 2017, 04:27 PM
Hi Sir,

If you have rental apartment business, do you need to pay percentage tax and income tax as well?


wilch23

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Reply #66 on: Jun 07, 2017, 09:16 PM
Yes, unless your rental income is over 1.9M ata (paki check nalang exact figure) per year then you will have to register as VAT payer and pay 12% instead of the percentage tax of 3% - both sales tax based on gross revenue, to be paid monthly.

Then, pay income tax on top of the sales tax.



rodschroth

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Reply #67 on: Jun 07, 2017, 10:43 PM
Thank you for your reply Sir Wilch23.


Is it not double taxation?


Can you sir explain what is the difference between percentage tax and income tax? What are the things being tax in percentage tax and the thing being tax in income tax in terms of apartment rental business? Are they the same.


Thanks again


cesarhernandez

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Reply #68 on: Jun 22, 2017, 01:34 PM
same po ba ito with real estate property tax?


wilch23

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Reply #69 on: Jun 24, 2017, 10:29 AM
Thank you for your reply Sir Wilch23.


Is it not double taxation?

In reality sort of YES, double taxation, one is sales tax and the other is tax on income. The worse thing is even if you don't make any profit, you still has to pay the sales tax. They are not the same, you're supposed to pay both.
Malupit talaga ang govt natin sa tax.


Can you sir explain what is the difference between percentage tax and income tax? What are the things being tax in percentage tax and the thing being tax in income tax in terms of apartment rental business? Are they the same.

The % tax is based on the gross sales, whether there is profit or not. Income tax is based on net income less tax exemptions, if any.

Thanks again
« Last Edit: Jun 24, 2017, 10:33 AM by wilch23 »


wilch23

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Reply #70 on: Jun 24, 2017, 10:33 AM
same po ba ito with real estate property tax?

NO. Real estate tax is tax just for owning a property regardless of how it is being utilized.


wilch23

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Reply #71 on: Jun 24, 2017, 10:35 AM
Is it any wonder why majority of residential rentals are in the underground economy?


badcheetah

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Reply #72 on: Sep 27, 2017, 06:34 PM
Explain it further sir. Hahaha I believe there is some good topic on your question.  :rakenrol:


wilch23

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Reply #73 on: Oct 07, 2017, 09:15 AM
It is a rhetorical question.

??


birhilo

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Reply #74 on: Dec 06, 2018, 02:29 PM
Hi.

Nag-business ako ng 2013. Php12,000 ang rent ko; Php2000 electricity; average water consumption Php300; kita ko kada buwan ay Php4000-6000 (naka-awas na ang rent at utilities). Hindi kasya sa akin ang Php6,000/month kasi Bipolar ako at gumagastos ng 10,000/month sa gamot.

May PWD card ako kaya minsan may 20% off sa services and food. Hindi ako pwede sa opisina magtrabaho dahil nagkakasakit ako gawa ng stress. Kapag nagkasakit ako, gagastos ako ng minimum Php200,000 for 2 weeks hospitalization (dapat maka-one month ako sa dungeon).

Magbabayad pa ba ako ng tax? mami ko na ang sumasagot sa mga gamot ko.


 


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