My Proposed Revision of Taxation on Real Estate Brokers

Customarily, real estate brokers don't charge professional fees for each step of services rendered other than the end commission of a successful sale. For most brokers, successful sale only happens once in a blue moon, and for some, there are year periods when they neither get professional fees nor make a sale at all. This means we have no frequent transactions that require a pad of official receipt. It is inefficient and impractical if we will report monthly VAT/PERCENTAGE TAX to BIR just to report "NO INCOME".

Also, the VAT/PERCENTAGE taxation of Broker's Commission is REDUNDANT TAX because it is ALREADY TAXED as part of the entire Total Selling Price.

If the BIR will not support my Mandatory Due Diligence Fee proposal, we have a very strong reason to request that brokers' commission will be exempted from VAT and Percentage Tax. However, I do believe that we still have to declare and pay ANNUAL INCOME TAX.

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