29/07/2026
https://www.facebook.com/share/p/1DEUW1Q3YK/
๐๐๐ง๐ญ ๐๐ง๐๐จ๐ฆ๐ ๐๐ซ๐จ๐ฆ ๐๐๐๐ฌ๐ ๐จ๐ ๐๐จ๐๐ซ๐๐ข๐ง๐ ๐๐จ๐ฎ๐ฌ๐๐ฌ, ๐๐จ๐ซ๐ฆ๐ฌ, ๐๐ง๐ ๐๐ฉ๐๐ซ๐ญ๐ฆ๐๐ง๐ญ๐ฌ ๐๐ซ๐ ๐๐ฎ๐๐ฃ๐๐๐ญ ๐ญ๐จ ๐๐๐ฑ
There are a lot of residential units for rent - boarding houses, dorms and apartments which really are not BIR registered. A lot of signage are visible near schools or offices. The post about 'exemption from VAT' on this page already discusses about when is a rent of these residential units are exempt from VAT and OPT (the P15,000 threshold). The lessors should register the leasing business - be it a small or large income generating business. Most of the lessors of course are renting out a portion of their houses, which for them are quite not okay registering because these are their houses. But the tax laws and regulations mandates that a person engaged in business (like leasing) must be registered and shall follow the bookkeeping and invoicing requirements.
Even if registered, still there are ways to avoid paying taxes which for instance you are earning not exceeding P250,000 net income from this leasing and the residential units are earning P15,000 and below per month per unit. This is mostly the case of taxpayer leasing out a portion of their own houses. Again, being registered is no automatically liable to pay tax. It is better to operate legally and avoiding hefty penalties once the BIR conducted tax mapping and noted a signage "dorm / boarding house / apartment for rent" and subsequently verified the BIR registration of the lessor.
The message is simply "Register to operate legally but avoid or minimize paying taxes through legal means pursuant to the provisions of the tax laws."