A couple of months ago, after passing the real estate broker board exam given by the Professional Regulation Commission (PRC), I was at a loss regarding the procedures I should be aware of with regard to the Bureau of Internal Revenue (BIR). I knew I had to find out because I didn't want to be labeled as a tax evader, and ignorance isn't an excuse. So, I sent an e-mail to the BIR, without really expecting a reply:
Hello,
I'm a recent passer of the PRC-held real estate brokers exam last March 27, 2011. I'd like to seek clarification about the requirements for a professional such as I. Please verify that we need:
- Professional Tax Receipt (PTR) - municipal hall
- BIR Certificate of Registration - is this necessary for individual brokers? I heard this is for those who want to put up a brokerage company
- Official Receipt - is this necessary for individual brokers?
I would appreciate it if you could point me to a resource where I can find the answers. Thank you very much.
Sincerely,
Jon
So imagine my surprise when I receive a reply, albeit a couple of months late:
In reply, since you are now considered a professional being a real estate broker duly registered as one under the Professional Regulation Commission (PRC), you are required to issue the corresponding Professional Tax Receipt (PTR) to your prospective clients. The said PTR has to be coordinated with the city or municipal hall that has jurisdiction over your place of residence or practice of profession. However, we refer you to Section 7 of Revenue Regulations (RR) No. 11-2008, which mentions among others, that PTR is one of the documentary requirements required from professionals, to wit;
SEC. 7. BIR FORMS AND ADDITIONAL DOCUMENTARY REQUIREMENTS . - The registration forms shall generally contain the taxpayer's name, TIN, SEC/CDA/DTI/HLURB Registration Number, date of registration, registered address, taxpayer type, tax types, business style, place of residence (for individual) , line of business, and such other information as may be required by the Commissioner in the form prescribed therefor to be filled out in two (2) copies, properly labeled and indicated thereon the specific purpose of the copy, i.e., “taxpayer’s copy” and “BIR’s copy” .
These forms shall be submitted together with the required documents , namely:
(a) In the case of self-employed individuals, mixed income earners, professionals, estates and trusts -Form to be prescribed by the BIR, together with the submission of the following:
(a.1) For self -employed, professionals , mixed income earners - Photocopy of :
(a.1.1) Mayor’s Business Permit /PTR issued by the LGU;
(a. 1.2) Lease Contract, if applicable;
(a.1.3) DTI Certificate of Registration of Business Name, if a business trade name shall be used ;
(a.1.4) Certificate of Authority if Barangay Micro Business Enterprises (BMBE) registered-entity, if applicable ;
(a.1.5) Proof of Registration/Permit to Operate with Board of Investment (BOI)/Board of Investment for Autonomous Region for Muslim Mindanao (BOI-ARMM), Philippine Export Zone Authority (PEZA), Bases Conversion Development Authority (BCDA) & Subic Bay Metropolitan Authority (SBMA), if applicable;
(a.1.6) Franchise Agreement, if applicable;
(a.1.7) Sworn Statement of Capital, if applicable; (a.1.8) Working Permit for non-resident;
(a.1.9) Waiver of husband to claim additional exemption, if applicable;
(a.1.10) Marriage Contract, if applicable ; and
(a.1.11) Birth Certificates of declared dependents, if applicable.
(a.2) For Trust - In addition to the requirements under a.1 (1 to 7), photocopy of the trust agreement;
(a.3) For Estate (under judicial settlement) - In addition to the requirements under a.1 (1 to 7), photocopy of the Death Certificate of the deceased.
As to BIR - Certificate of Registration (COR), we affirm that you are also to be issued one by the BIR – Revenue District Office (RDO) that has jurisdiction over your place of residence or practice of profession. We refer you to Section 8 (A) of the said RR, to wit;
SEC. 8. CERTIFICATE OF REGISTRATION (COR). -
(A) Persons Entitled to the Issuance of COR. - The COR shall only be issued to individuals engaged in business or the practice of profession and to juridical persons (whether taxable or exempt) by the Revenue District Officer (RDO) concerned (i.e.,RDO of head office/branch/facility) upon compliance with the requirements for registration. Issuance of COR, whether upon registration or upon update of taxpayer’s information, is not subject to the payment of Certification Fee, unless the taxpayer requested for a certified copy of said COR, in which case, the same shall be subject to the payment of Certification Fee imposed by Sec. 15 hereof.
(B) Persons Not Covered by the Issuance of the COR. - Employees, one-time taxpayers, and/or persons who have secured TIN under EO 98 with the BIR shall not be issued a COR.
As to official receipts, we confirm that as a professional, you are likewise required to request for an authority to print receipts (ATP) prior to registration and issuance of such to your prospective clients. We refer you to Section 237 and 238 of the 1997 Tax Code, to wit;
SEC. 237. Issuance of Receipts or Sales or Commercial Invoices. - All persons subject to an internal revenue tax shall, for each sale or transfer of merchandise or for services rendered valued at Twenty-five pesos (P25.00) or more, issue duly registered receipts or sales or commercial invoices, prepared at least in duplicate, showing the date of transaction, quantity, unit cost and description of merchandise or nature of service: Provided, however, That in the case of sales, receipts or transfers in the amount of One hundred pesos (P100.00) or more, or regardless of the amount, where the sale or transfer is made by a person liable to value-added tax to another person also liable to value-added tax; or where the receipt is issued to cover payment made as rentals, commissions, compensations or fees, receipts or invoices shall be issued which shall show the name, business style, if any, and address of the purchaser, customer or client: Provided, further, That where the purchaser is a VAT-registered person, in addition to the information herein required, the invoice or receipt shall further show the Taxpayer Identification Number (TIN) of the purchaser.
The original of each receipt or invoice shall be issued to the purchaser, customer or client at the time the transaction is effected, who, if engaged in business or in the exercise of profession, shall keep and preserve the same in his place of business for a period of three (3) years from the close of the taxable year in which such invoice or receipt was issued, while the duplicate shall be kept and preserved by the issuer, also in his place of business, for a like period.
The Commissioner may, in meritorious cases, exempt any person subject to internal revenue tax from compliance with the provisions of this Section.
SEC. 238. Printing of Receipts or Sales or Commercial Invoices. - All persons who are engaged in business shall secure from the Bureau of Internal Revenue an authority to print receipts or sales or commercial invoices before a printer can print the same.
No authority to print receipts or sales or commercial invoices shall be granted unless the receipts or invoices to be printed are serially numbered and shall show, among other things, the name, business style, Taxpayer Identification Number (TIN) and business address of the person or entity to use the same, and such other information that may be required by rules and regulations to be promulgated by the Secretary of Finance, upon recommendation of the Commissioner.
All persons who print receipt or sales or commercial invoices shall maintain a logbook/register of taxpayers who availed of their printing services. The logbook/register shall contain the following information:
(1) Names, Taxpayer Identification Numbers of the persons or entities for whom the receipts or sales or commercial invoices were printed; and
(2) Number of booklets, number of sets per booklet, number of copies per set and the serial numbers of the receipts or invoices in each booklet.
The full text of RR 11-2008 and the 1997 Tax Code are accessible from the BIR website under the Issuances and Rulings, Revenue Regulations, 2008, 11-2008 links and Special Sites, Tax Code links respectively.
For other inquiries, you may visit www.bir.gov.ph or call us at 981-8888. We appreciate your continued support.
Sincerely,
The BIR Contact Center Team
E-mail: contact_us@cctr.bir.gov.ph
The information contained in this communication is intended solely for the use of the individual or entity to whom it is addressed and others authorized to receive it. It may contain confidential or legally privileged information. If you are not the intended recipient you are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Any views expressed in this message are those of the BIRCC based on available references and is not binding as evidence against the BIR. If you have received this communication in error, please notify us immediately by responding to this email and then delete it from your system. All emails and file attachments sent to and received through the BIR domain is scanned for viruses by BIR's email Virus scanning system. However it is recommended that attachments, if any, be scanned for viruses before launching. The BIR is not liable for any damages caused due to virus(es), trojans or any other form of malicious software transmitted over email. It is neither liable for the proper and complete transmission of the information contained in this communication nor for any delay in its receipt.
Well what do you know, the BIR actually responds to e-mail inquiries! I was really honestly pleasantly blown away by this happy happenstance. At least now, I know what to do! PTR, and BIR certificate of registration and official receipts to practice my chosen profession as a licensed real estate broker. All's good, things are looking up, as I said *^_^*
Hit me back (I must be dreaming!)
Jon
