I just would like to clarify the following:

The RESA Law States that: “SEC. 29. Prohibition Against the Unauthorized Practice of Real Estate Service. No person shall practice or offer to practice real estate service in the Philippines or offer himself/herself as real estate service practitioner, or use the title, word, letter, figure or any sign tending to convey the impression that one is a real estate service practitioner, or advertise or indicate in any manner whatsoever that one is qualified to practice the profession, or be appointed as real property appraiser or assessor in any national government entity or local government unit, unless he/she has satisfactorily passed the licensure examination given by the Board, except as otherwise provided in R.A. No. 9646 and the IRR is a holder of a valid certificate of registration and professional identification card or a valid special/temporary permit duly issued to him/her by the Board and the Commission; and, in the case of real estate brokers and private appraisers, they have paid the required bond as provided for in R.A. No. 9646.”

My understanding of the section is that a person who is not licensed as a real estate practitioner cannot sell properties unless they own it or they are representing someone as an attorney-in-fact.

However, why does BIR have a ruling stating that for real estate service practitioners who do not have yet a license issued by the Professional Regulations Commission, the withholding tax rate is 10%, regardless of their gross income in the current year.

How come there is a rate of taxes for non-licensed practitioners when they should not be able to sell properties legally?

Is this an outdated law? Is this still implemented?

Thank you.