Summary
RR No. 10-2013 amends RR No. 2-98, as last amended by RR No. 30-2003 and RR No. 14-2002, to place real estate service practitioners under the creditable withholding tax rules for professionals and for certain brokers and agents.
Key points
- 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.
- 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.
- 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
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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