Digest of Revenue Regulations 12-2011 dated July 25, 2011
“Reportorial Requirement for Establishments Leasing or Renting Out Spaces For Commercial Activities”
This regulation is issued to ensure that all the owners and sub-lessors of spaces transact only to every person doing business who are duly registered with the BIR according to its registration requirements.
To ensure this, the owners/sub-lessors are now required to submit the following to the Revenue District Offices where the space being rented out is located:
- Building/space layout of the entire area being leased with proper unit/space address or reference;
- Certified True Copy of Contract of Lease per tenant, and;
- The Lessee Information Statement shall be presented in the prescribed format (printed copy and soft copy stored in a CD-R -CD Recordable)
Failure to submit or willfully submission of false or falsified information, or knowingly transacting with taxpayers who are not duly registered with the BIR are subject to penalty provided by:
a. Sec. 255 of the Tax Code – in addition to other penalties provided by law, be punished by a penalty of not less than Ten Thousand Pesos (P10,000.00) and imprisonment of not less than one (1) year but not more than ten (10) years.
b. Sec 267 of the Tax Code – the Penalties of Perjury
First time submission of items enumerated above will cover tenants as of July 31, 2011, and will have to be submitted on or before September 1, 2011 under Oath to the BIR Revenue District Office (RDO) where the establishment is located in HARD and SOFT COPIES.