ROYALTY PAID BY REAL ESTATE PRACTITONERS TO RLTR®/REALTER℠ AND P500 AIPO ANNUAL MEMBERSHIP FEE ARE INCOME TAX DEDUCTABLE ITEMS. There shall be allowable as deduction from the gross income all the ordinary and necessary expenses paid or incurred during the taxable year, which includes:
Salaries, Wages and other employee's benefits.
SSS, GSIS, Medicare, HDMF and other contributions.
Repairs and Maintenance.
Representation and Entertainment - limitation is 1/2% of seller goods (based on net sales), or 1% if seller of service (based on net revenue).
Transportation and Travel - here and abroad.
Fuel and Oil.
Communication, Light and Water.
Interest - paid or incurred during the taxable year of indebtedness. Provided: Interest Expense shall be reduced by an amount equal to the following percentages of interest income subject to final tax: 42% - July 1, 2005 to December 31, 2008.
Tax and Licenses
Losses -- actually sustained during the taxable year and not compensated for by insurance or other forms of indemnity shall be allowed if incurred in trade or business.
Bad Debts -- actually ascertained to be worthless and changed off within the taxable year.
Amortization and Intangibles.
Charitable Contributions. Individual - 10% of Net Income before Charitable Contributions.
Research and Development.
Amortization of Pension Trust Contribution.
Light and Power, Telephone and Telegraph.
Pero kailangan daw mag issue ng Official Receipt ang RLTR®/REALTER℠. Ganun din ang AIPO kailangan din mag issue ng Official Receipt.
Per BIR, the Business Industry Group ng RLTR®/REALTER℠ VAT-Category can either be under
Group C - Real Estate Activities
Group E - Activities of Membership Organizations