Let me answer the same question I asked. In summary, you don't need to pay the 5% withholding tax if your rent is less than 10,000 a year
. However, you are still required to file form 1601-E, which is due on the 10th
of each month.
The latest ruling on this matter is found in REVENUE REGULATIONS NO. 17-2003, section 3. (aka RR17-2003 sec. 3) issued on March 31, 2003 by the BIR.
(2) Personal properties. - On gross rental or lease in excess of Ten Thousand Pesos P10,000.00) annually for the continued use or possession of personal property used in business which the payor or obligor has not taken or is not taking title, or in which he has no equity, except those under financial lease arrangements with leasing and finance companies authorized to operate under Republic Act No. 8556 (Financing Company Act of 1998). – Five percent (5%)
Electronic copy of this ruling is in here
Thanks to snowweb for helping me clarify this issue