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.
I have already sold the property. Do I still have to complete the Property Tax Return issued to me?
Even though your property has been sold, you must continue to file your Property Tax Returns for the years of assessment up to and including the year of the sale.
Notice of Chargeability
You must inform the Inland Revenue Department in writing if you have any assessable income and supply the relevant details within 4 months after the end of the basis period for that year of assessment (unless you have already received a tax return to report the income).
Please be aware that the stamping of a tenancy agreement or the completion of a questionnaire from the Rating and Valuation Department is not considered a notification of chargeability if you are a property owner and have rented out your property. You must nonetheless notify the Inland Revenue Department in writing, and you may do so by using the Form IR6129.
Do I have to keep records of rental income?
Yes, the law requires you to keep and retain sufficient rent records for at least 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.
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