Withholding tax system in the Philippines is quite an interesting topic for those engaged in trade or business, or those in practice of profession. This is a system of advance collection scheme where the approximate income tax of a specific income payment is being deducted and remitted to the BIR. By this, BIR is more assured that income will be declared and reported, thus, this is in the form of a check and balance.

This post covers tax implications of renting residential dwellings such as an apartment, condominium unit, and a house and lot in both sides-the lessor or owner and the lessee or tenant. Tax implication would depend on the monthly rental of such units. For every lease contract, a documentary stamp tax (DST) at the rate of [...]