1. How should taxpayers report their rental income for Property Tax assessment to the Inland Revenue Department?
Rental income from a solely-owned property should be declared in the owner's Tax Return – Individuals (B.I.R. 60), which is the same form used for reporting salary or profit of individual persons.
Rental income from a jointly-owned or co-owned property can be declared by any owner in a Property Tax Return (B.I.R. 57) . Annual Property tax Returns are issued to the owners of jointly-owned or co-owned properties on a property-by-property basis, and can be completed and submitted by any one of the owners.
Do I have to keep records of rental income?
Yes, the law requires you to keep and retain sufficient rent records for 7 years to enable the assessable value of your property to be readily ascertained. It is recommended that you retain lease agreements, correspondence relating to modification of lease terms and recovery of rent in arrears etc.