Income from rent is categorized under passive income and is therefore subject to 20% tax. As BIR becomes aggressive on taxing passive income, even to the point of checking the bank accounts of people, rents nationwide will surely increase. Heads up: massive inflation is inevitable.
Think about this. Real estate lease agents only take 8% commission, while BIR takes 20% tax. Ridiculous.
If there is anything else important that I forgot to include in this article, or if you experienced a real estate transaction that is anomalous, scam, fraudulent scheme that you want me to document and expose for others to be warned, or if you want to donate to the war chest of real estate consumer rights advocacy, please feel free to email me at JohnPetalcorin@Gmail.Com. If you want to comment about this article, there is a provision for this purpose that you can find below.
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