Vol. XXI, No. 139 [ Business World Online ]
Thursday, February 14, 2008 | MANILA, PHILIPPINES
THE GOVERNMENT wants the real estate sector to pay value-added taxes (VAT) in advance in a bid to shore up its revenues.
The would make the sector to fourth to be dunned so - the requirement is already in place for refined sugar, imported wheat, and lumber - and industry officials are complaining.
In a public hearing yesterday, the Bureau of Internal Revenue (BIR) said the rate for the advance VAT has been set at 3% of the gross selling price or the fair market value of the property to be sold, whichever is higher.
"Taxpayers engaged in the real estate business or habitually engaged in the sale or lease of real properties, are hereby required to pay advance VAT on each and every sale, exchange or transfer of real properties used in their trade or business or those that would normally form part of their stock in trade or inventory," the draft regulation states.> > > [ full story ]
