OWNERS of commercial establishments will now be required to ensure that their tenants are registered taxpayers, according to the latest issuance of the Bureau of Internal Revenue (BIR). The BIR has begun its drive to track the untaxed sector with Revenue Regulations No. 12-2011, issued on July 25.
The latest tax regulation sets the reportorial requirements for establishments leasing commercial spaces. “It shall be the primary responsibility of all owners or sub-lessors of commercial establishments/ buildings/spaces to ensure that the person intending to lease their commercial space is a BIR- registered taxpayer,” the issuance stated. Their tenants must have a tax identification number (TIN), a BIR Certificate of Registration and duly registered receipts, it added.
These requirements ensure that those engaged in retail remit value-added taxes and income taxes to the government. Under the new issuance, building owners will now be required to submit, under oath, a tax registration profile of their lessees to the BIR twice a year.(BIR)