RR No. 10-2013: Amends further pertinent provisions of Revenue Regulations (RR) No. 2-98, as last amended by RR No. 30-2003, which provides for the inclusion of real estate service practitioners who passed the licensure examination given by the Real Estate Service under the Professional Regulations Commission as among those professionals falling under Section 2.57.2(A)(1) of RR No. 2-98, as amended, and RR No. 14-2002 as regards income payments to certain brokers and agents

Key points

1. Licensed practitioners. Real estate service practitioners (real estate consultants, appraisers and brokers) who passed the licensure examination under Republic Act No. 9646 fall under Section 2.57.2(A)(1). The rate on gross professional, promotional and talent fees is 15% if gross income for the current year exceeds P 720,000, and 10% if otherwise.
2. Practitioners without the license. Under Section 2.57.2(G), practitioners who failed or did not take the licensure examination and are not registered with the Real Estate Service under the Professional Regulations Commission are taxed at 10% on gross commissions and fees.
3. Same group of payees. The 10% rate in that Section also applies to gross commissions of customs, insurance, stock, immigration and commercial brokers, and fees of agents of professional entertainers.

Who is affected

• Real estate consultants, appraisers and brokers
• Payors of their fees and commissions

Deadlines and effectivity

• Effective June 1, 2013
• Covers income payments paid or payable starting June 1, 2013 that are required to be remitted within July 2013