RR No. 12-2011: Prescribes the reportorial requirement for establishments leasing or renting out spaces for commercial activities

Key points

1. Check on tenants. Owners or sub-lessors of commercial establishments, buildings or spaces must ensure that a prospective lessee is a BIR-registered taxpayer with a TIN, a BIR Certificate of Registration and duly registered receipts, sales or commercial invoices, in compliance with Sections 237 and 238 of the Tax Code.
2. What must be submitted. Owners and sub-lessors submit under oath, in hard and soft copies, to the RDO where the space is located: a layout of the entire leased area with unit or space address, a certified true copy of the lease contract per tenant, and the Lessee Information Statement in the prescribed Excel format, printed and on a CD-R.
3. Filing dates. Submission is due every 31st of January (tenants as of December 31st of the previous year) and every 31st of July (tenants as of June 30th of the current year).
4. Monitoring and penalties. The RDO monitors compliance, and lessors may seek its help to verify tenants’ TINs. Failure to submit, willfully submitting false information, or knowingly transacting with unregistered taxpayers carries the penalty under Sections 255 and 267 of the Tax Code.
5. First filing. The first filing covers tenants as of July 31, 2011, and the documents are due on or before September 1, 2011.

Who is affected

• Owners and sub-lessors of commercial establishments, buildings or spaces leasing to businesses
• RDOs where such spaces are located

Deadlines and effectivity

• Every January 31 and July 31
• First filing covers tenants as of July 31, 2011
• First filing due on or before September 1, 2011