GPH Business Consultancy

𝐑𝐞𝐧𝐭 𝐈𝐧𝐜𝐨𝐦𝐞 𝐟𝐫𝐨𝐦 𝐋𝐞𝐚𝐬𝐞 𝐨𝐟 𝐁𝐨𝐚𝐫𝐝𝐢𝐧𝐠 𝐇𝐨𝐮𝐬𝐞𝐬, 𝐃𝐨𝐫𝐦𝐬, 𝐚𝐧𝐝 𝐀𝐩𝐚𝐫𝐭𝐦𝐞𝐧𝐭𝐬 𝐚𝐫𝐞 𝐒𝐮𝐛𝐣𝐞𝐜𝐭 𝐭𝐨 𝐓𝐚𝐱

There are a lot of residential units for rent - boarding houses, dorms and apartments which really are not BIR registered. A lot of signage are visible near schools or offices. The post about 'exemption from VAT' on this page already discusses about when is a rent of these residential units are exempt from VAT and OPT (the P15,000 threshold). The lessors should register the leasing business - be it a small or large income generating business. Most of the lessors of course are renting out a portion of their houses, which for them are quite not okay registering because these are their houses. But the tax laws and regulations mandates that a person engaged in business (like leasing) must be registered and shall follow the bookkeeping and invoicing requirements.

Even if registered, still there are ways to avoid paying taxes which for instance you are earning not exceeding P250,000 net income from this leasing and the residential units are earning P15,000 and below per month per unit. This is mostly the case of taxpayer leasing out a portion of their own houses. Again, being registered is no automatically liable to pay tax. It is better to operate legally and avoiding hefty penalties once the BIR conducted tax mapping and noted a signage "dorm / boarding house / apartment for rent" and subsequently verified the BIR registration of the lessor.

The message is simply "Register to operate legally but avoid or minimize paying taxes through legal means pursuant to the provisions of the tax laws."

𝗕𝗜𝗥 𝗖𝗟𝗔𝗥𝗜𝗙𝗜𝗘𝗦 𝗖𝗥𝗘𝗗𝗜𝗧𝗔𝗕𝗟𝗘 𝗪𝗜𝗧𝗛𝗛𝗢𝗟𝗗𝗜𝗡𝗚 𝗧𝗔𝗫 𝗥𝗨𝗟𝗘𝗦 𝗙𝗢𝗥 𝗧𝗢𝗣 𝗪𝗜𝗧𝗛𝗛𝗢𝗟𝗗𝗜𝗡𝗚 𝗔𝗚𝗘𝗡𝗧𝗦 𝗨𝗡𝗗𝗘𝗥 𝗥𝗥 𝗡𝗢. 𝟮𝟰-𝟮𝟬𝟮𝟱

The Bureau of Internal Revenue (BIR) advises all Top Withholding Agents (TWA), manufacturers, direct importers, taxpayers, and other stakeholders that it has issued Revenue Memorandum Circular (RMC) No. 79-2026, which clarifies the provisions of Revenue Regulations (RR) No. 24-2025 on the imposition of Creditable Withholding Tax (CWT) on Top Withholding Agents.

The Circular provides answers to frequently asked questions on the implementation of RR No. 24-2025, including the application of the one-half percent (1/2%) CWT on purchases from manufacturers and direct importers of covered goods intended for wholesale. It also clarifies the documentary requirements for establishing a supplier's status, the proper interpretation of "intended for wholesale," and the circumstances under which the preferential 1/2% CWT rate applies.

In addition, RMC No. 79-2026 clarifies the application of the withholding tax rules to purchases involving motor vehicles in Completely Built Unit (CBU) or Semi-Knocked Down (SKD) form, motorcycles, pharmaceutical products, and solid and liquid fuels and related products. It also prescribes the appropriate corrective measures when an incorrect withholding tax rate has been applied.
The issuance aims to promote the uniform implementation of RR No. 24-2025, provide clearer guidance to withholding agents and taxpayers, and ensure the proper application of withholding tax rules in covered transactions.

For the full text of RMC No. 79-2026, visit the BIR website or access the Circular through this link:https://bir-cdn.bir.gov.ph/BIR/pdf/RMC%20No.%2079-2026_redacted.pdf

𝗕𝗜𝗥 𝗜𝗦𝗦𝗨𝗘𝗦 𝗖𝗟𝗔𝗥𝗜𝗙𝗜𝗖𝗔𝗧𝗜𝗢𝗡𝗦 𝗢𝗡 𝗢𝗡𝗘-𝗧𝗜𝗠𝗘 𝗔𝗕𝗔𝗧𝗘𝗠𝗘𝗡𝗧 𝗣𝗥𝗢𝗚𝗥𝗔𝗠 𝗙𝗢𝗥 𝗠𝗜𝗖𝗥𝗢 𝗧𝗔𝗫𝗣𝗔𝗬𝗘𝗥𝗦

The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 84-2026, providing clarifications on the implementation of Revenue Regulations (RR) No. 4-2026, which prescribes the guidelines and procedures for the availment of the One-Time Abatement of Taxes and/or Penalties for Micro Taxpayers.

The Circular adopts a Question-and-Answer format to address common concerns regarding taxpayer qualification, documentary requirements, filing procedures, payment of the one-time abatement fee, covered tax liabilities and penalties, application timelines, and other implementation issues. It also provides illustrative examples to guide taxpayers in determining their eligibility under the program.

Among the clarifications, the Circular explains that taxpayers may verify their classification as a Micro Taxpayer through the BIR Online Registration and Update System (ORUS) or by coordinating with their respective Revenue District Offices. It likewise clarifies that only qualified cases existing as of December 31, 2025, and meeting the requirements under RR No. 4-2026, are covered by the program.

The Circular further explains the treatment of pending compromise and abatement applications, one-time transactions, open case penalties, multiple taxable years, partial payments, and other situations that may arise in the implementation of the One-Time Abatement Program. It also outlines the grounds for denial of applications and clarifies the significance of the Certificate of Availment issued to qualified applicants.

Taxpayers are encouraged to read RMC No. 84-2026 to better understand the requirements and procedures for availing of the One-Time Abatement Program for Micro Taxpayers.

Read the full Revenue Memorandum Circular here: https://bir-cdn.bir.gov.ph/BIR/pdf/RMC%20No.%2084-2026_Redacted.pdf?fbclid=IwY2xjawTQWyJwZG9mAWV4dG4DYWVtAjEwAGJyaWQRMVFkSjZPM0ZhdG5JRmZUQUNzcnRjBmFwcF9pZBAyMjIwMzkxNzg4MjAwODkyAAEe17gKGXp2IsePoanRJjj4yAOiYqz_dCFe3EOTuNT2u040a2z8BntvDAwt0hA_aem_GATcFj98ZTulvKNB4xCrBQ

BIR Update: Revenue Memorandum Circular (RMC) No. 81-2026

Prescribing Workaround Procedures for Claiming Five-Year Net Operating Loss Carry-Over Incurred in Taxable Years 2020 and 2021 in the Offline eBIRForms Package and Electronic Filing and Payment System