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THE Bureau of Internal Revenue (BIR) will require real-estate
developers to soon pay in advance the value-added tax (VAT) on every
sale, exchange or transfer of property.
In a statement, Nelson M. Aspe, BIR deputy
commissioner, said the bureau would impose a 3-percent advanced VAT
based on gross selling price.
To date, the bureau requires developers to pay
12-percent VAT on monthly amortizations.
Aspe also said the agency is appealing to
property developers to adhere to existing revenue laws and
regulations on real estate transactions.
The BIR is under pressure to raise its
collection performance after its fell short of its P765-billion
programmed goal last year. The bureau accounts for about 70 percent
of total government revenues.
For this year, the agency is tasked to P844.95
billion, but the BIR wants the Department of Finance to cut its
collection target to below P800 billion.
-- Chino S. Leyco
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