[Ask the Tax Whiz] Is Airbnb taxable in the Philippines?

Are you an Airbnb host? The Philippine Tax Whiz offers some advice.

The Philippine Tax Whiz advises Airbnb hosts to register with the Bureau of Internal Revenue (BIR) if they offer their property for short-term or long-term rental.

There’s no need for new legislation as existing laws and regulations apply to leasing of property for residential or commercial purposes, whether booked directly, online, or through digital platforms like Airbnb.

How do I register with the BIR as an Airbnb host? What are the taxes I need to pay?

Generally, you have to register as self-employed to lease your property. As self-employed, you have to secure a business name, permit, and certificate of registration from the Department of Trade and Industry (DTI), local government, and the BIR, respectively.

You may subscribe to the TaxWhizPH YouTube channel and watch the episode on the business registration process in the Philippines.

Initially, you will have to pay local tax (business permit), income tax, and percentage tax, if your annual gross sales do not exceed P3 million. Otherwise, you have to pay 12% value added tax (VAT).

I just started renting out my apartment via Airbnb last month. Do I need to issue official receipts? I only got one booking due to the on and off quarantine restrictions. Is there a tax relief or exemption for small income earners like me?

Article and Photo originally posted by Rappler last June 3, 2021 9:15pm and written by Mon Abrea.