TAX ALERT

BIR released a new regulation on reportorial requirement for establishments leasing or renting out spaces for commercial activities.

RR 12-2011 provides that it shall be the primary responsibility of all owners of commercial establishments/buildings/spaces to ensure that the person intending to lease their commercial space is a BIR-registered taxpayer.

Every 31st of January starting from the current year (for tenants as of Dec 31st of the previous year) and 31st of July starting from the current year (for tenants as of June 30th of the current year), all owners or
sub-lessors of commercial establishments/buildings/spaces who are leasing or renting out such commercial space to any person doing business thereare required to submit to the BIR RDO where the property is located in hard and soft copies the lessee information sheet.

Section 5 of the regulation further provides that the first filing of tenants profile will cover tenants as of July 31, 2011.  All owners-sublessors are required to comply with these regulations by submitting the documents under section 5 ON OR BEFORE SEPTEMBER 1, 2011.  Failure to submit will result to penalties as provided in section 4.

Attached in our Oro Chamber eGroup is the regulation for further information.