Reportorial Rule for Leasing Commercial Spaces

Owners/sub-lessors must verify that tenants are BIR-registered taxpayers.
Registered taxpayers must have TIN, BIR Certificate of Registration, and registered receipts or commercial invoices according to Sections 236, 237, and 238 of the Tax Code.
Owners/sub-lessors required to submit the following annually:
- Building or space layout with unit/space address.
- Certified true copy of contract of lease for each tenant.
- Lessee Information Statements in prescribed Excel format (hard copy + soft copy on CD-R), including details such as owner/lessor name, TIN, address, tenant names, leased area, rental amount, lease start and duration, BIR registration profile (TIN, Authority to Print number, and receipt of POS/CRM permits).
Submission deadlines are January 31 (for tenants as of December 31 of previous year) and July 31 (for tenants as of June 30 of current year).
Separate forms for initial and subsequent filings, including new and terminated tenants.

Local RDOs where commercial spaces are located shall monitor compliance with the regulations.
Lessors may request verification of tenant TINs from the designated RDO.
Upon receipt, RDOs validate tenant registration profiles using the BIR's Integrated Tax System database.
RDO where property is located must forward submitted reports to RDO where lessor is registered.
Each RDO maintains a database of this information for future audits and investigations.

All persons subject to internal revenue tax must comply with registration, issuance of receipts/invoices, and securing authority to print receipts under the Tax Code.
Failure to comply subjects the person to criminal sanctions as stipulated in the Tax Code.
Owners or sub-lessors who fail to submit the required reports, purposely submit false information, or transact with unregistered taxpayers are penalized under Section 255 of the Tax Code.
Section 255 penalties include fines not less than PHP 10,000 and imprisonment from one to ten years upon conviction.
Section 267 imposes penalties for filing false declarations or statements under penalties of perjury, subjecting violators to perjury penalties under the Revised Penal Code.

First required filing covers tenant profiles as of July 31, 2011.
Owners/sub-lessors must submit building layout, certified copies of lease contracts, and lessee information statements (both hard and soft copies) by September 1, 2011.
Submission must be made under oath to RDO where the commercial property is located.

All prior regulations or provisions inconsistent with these regulations are repealed, amended, or modified accordingly.

These regulations take effect 15 days after publication in a newspaper of general circulation.

Issued by the Secretary of Finance and Commissioner of Internal Revenue on July 25, 2011.