Lessor’s Obligation to Issue Rent Receipts

Philippine Law & Practice (Updated – June 2025)

1. Why rent receipts matter

Reason	Legal foundation	Practical effect
Proof of payment	Arts. 1232 & 1299, Civil Code	Protects the lessee from double-payment claims and gives the lessor a clean audit trail.
Compliance with rent-control statutes	BP Blg. 25 (1979) → RA 9161 (2002) → RA 9653 (2009, repeatedly extended—latest to 31 Dec 2027)	Non-issuance is a criminal offense and a ground for administrative sanctions.
Compliance with tax rules	NIRC § 237 (official receipts) and § 264 (penalties) + BIR RR 18-2012, RR 10-2015	Avoids compromise assessments, penalties, and closure of business.
Gatekeeper for eviction cases	Rule 70, Rules of Court; RA 9653 § 8	Courts routinely dismiss ejectment suits where the landlord cannot document unpaid rent.

2. Core legal bases

Civil Code of the Philippines
- While the Code (Arts. 1654 – 1688) does not expressly mention receipts, Arts. 1232 (payment extinguishes obligation) and 1626 (proof of extinguishment) make a receipt the primary documentary evidence of payment.

Rent-Control Legislation

Statute	Section on receipts	Status
BP Blg. 25 (1979)	§ 9: “The lessor shall issue a receipt for any rental or deposit paid.”	Historical but still cited in old cases.
RA 9161 (2002)	§ 4: mirrored BP 25 language.	Superseded in 2009.
RA 9653 (Rent Control Act of 2009)	§ 6: “The lessor shall, upon payment, issue a written receipt for the rent and any deposit…”	Still in force, sunset now 31 Dec 2027 under RA 11571 (2021).

National Internal Revenue Code (1997, as amended)
- § 237 – Persons engaged in trade / business must issue duly registered official receipts (ORs) for services such as leasing.
- § 264(a) – Failure or refusal to issue an OR is punishable by ₱1,000 – ₱50,000 per act + 2 – 4 years’ imprisonment.
- RR 18-2012 & RR 10-2015 – Detail BIR authority-to-print (ATP), the official receipt format, and e-receipt pilot rules.
Local Government Code (LGC 1991) & LGU ordinances
- City/municipal treasurers require OR books when issuing business permits to lessors operating more than one dwelling unit.
Implementing agencies
- DHSUD (successor to HUDCC) implements RA 9653; its Field Regulatory Enforcement Division handles tenant complaints on receipt violations.
- BIR enforces NIRC rules and may conduct surveillance or “Oplan Kandado” if no ORs are issued.

3. Who must issue receipts?

Scenario	Receipt duty?	Statutory anchor
Residential unit ≤ ₱15,000/mo in NCR (or provincial ceiling)	Yes – RA 9653	Virtually every “ordinary” landlord.
Residential unit > ₱15,000/mo	Yes – NIRC	Still a business/service transaction.
Commercial lease (office, warehouse)	Yes – NIRC	Civil Code + tax laws.
Casual lease of family-owned vacation house (one-off, no business)	Yes under RA 9653 if within ceiling; otherwise optional in civil law, but still mandatory if lessor already has a TIN and declares rental income.

Key principle: Once rent is income, the State insists on documentary proof, regardless of the scale of operations.

4. Form and content of a compliant receipt

Element	Residential receipt (RA 9653)	BIR official receipt (business)
Serial / OR No.	Optional	Required and BIR-printed
Lessor’s name & address	Required	Required
Lessee’s name & unit	Required	Required
TIN	Optional	Required for lessor; optional for tenant
Amount in figures & words	Required	Required
Period covered (e.g., “Rent for June 2025”)	Required	Required
Date of payment	Required	Required
Signatory	Lessor or authorized agent	Same
Mode (cash/cheque/bank transfer)	Good practice	Good practice (and mandatory to record cheque no.)

Electronic receipts: Large taxpayers may shift to e-receipting under the Electronic Invoicing/Receipting System (EIRS) pilot (E-Commerce Act § 6; BIR RMC 29-2019). Smaller landlords may use printed ATP forms until told otherwise.
Cheque as receipt: RA 9653 deems a cleared cheque a “receipt,” but prudent landlords still issue an OR once the cheque clears to avoid NIRC penalties.

5. Timing and manner of issuance

Immediate issuance – Statutes use the phrase “upon payment.” Practically, this means on the same day the cash or cheque is delivered.
If paid through deposit/transfer, a screenshot or bank advice may be attached to the OR, which the landlord should send (hard copy or PDF) within three (3) business days.
Security deposits – Must be covered by a separate receipt under RA 9653 § 6. Upon lease termination, the refund must likewise be receipted or documented by a quitclaim.

6. Remedies when the lessor refuses to issue a receipt

Step	Forum	Result
1. Barangay Conciliation (Lupon Tagapamayapa)	Katarungang Pambarangay Law (PD 1508)	Often ends with landlord signing an affidavit to issue receipts.
2. File with DHSUD Field Office	RA 9653 IRR	Investigators may impose ₱25k – ₱50k fine (1st offense) or endorse for prosecution.
3. Criminal complaint in MTC	For RA 9653 or NIRC § 264 violation	Fine and/or imprisonment; conviction may bar renewal of business permit.
4. Report to BIR (Accomplish Form 2117)	Tax compliance branch	Leads to audit; penalties plus “Oplan Kandado.”
5. Withhold rent?	Not allowed. Lessee must still pay but may deposit with court (consign) if refusal is persistent.

7. Penalties snapshot

Law	Monetary	Imprisonment	Notes
RA 9653 § 13	₱25,000 – ₱50,000 (1st); ₱50,000 – ₱100,000 (2nd)	1 – 6 months (2nd/subsequent)	Each violation = each month without a receipt.
NIRC § 264(a)	₱1,000 – ₱50,000 per receipt not issued	2 – 4 years	Also triggers jeopardy assessment of undeclared income.

8. Receipts as evidence in court

Prima facie proof of payment – Under the Rules on Evidence, a signed private document is presumed authentic against the signer (Rule 132 § 20).
Burden shifting – Once the tenant shows a receipt, the onus moves to the landlord to prove non-payment.
Ejectment suits – MTCs routinely dismiss unlawful detainer complaints when the landlord cannot refute tenant-issued receipts or bank proofs.

9. Compliance roadmap for landlords

Register with BIR – Secure Taxpayer Identification Number (if none), books of account, and Authority to Print (ATP) for ORs.
Secure a business permit – LGU may require fire safety inspection and sanitary permit for boarding houses/apartelles.
Print receipts – Only BIR-accredited printers; validity 5 years or until exhausted (RR 18-2012).
Issue on time – Hand over the OR immediately; keep a duplicate copy.
Keep records for 10 years – NIRC § 203 & § 222 retention rules.

10. Frequently asked questions

Question	Brief answer
Does a handwritten acknowledgment suffice?	Yes for RA 9653 compliance, but not for BIR if the lessor is “engaged in trade or business.”
Can a scanned PDF OR be valid?	Yes, so long as the original BIR-printed copy exists and the serial numbers are sequential; tenants may insist on the physical copy.
What if rent is paid via GCash or online banking?	The fund transfer slip is not a substitute for the landlord’s OR; the landlord must still issue one.
Are family-to-family “sideline” rentals exempt?	No. RA 9653 applies regardless of commercial intent if the unit is within the rent ceiling.
Is the receipt requirement suspended during calamities (e.g., COVID-19 lockdown)?	No. Government moratoria affected evictions and increases, not the duty to issue receipts.

11. Sample plain-language receipt template (RA 9653 minimum)

RENT RECEIPT Date: ____ Received from [Juan Dela Cruz, Tenant] the sum of P ____ (____ pesos) as Rental for Unit 3-B, 123 Mabini St., Quezon City, covering [June 1–30, 2025].

Maria Santos Lessor / Authorized Agent (Signature over printed name)

(For BIR compliance, add OR Number, TIN, business style, and VAT/non-VAT legends.)

12. Key take-aways

The obligation to issue rent receipts in the Philippines rests on three (3) independent pillars: the Civil Code (evidence of payment), rent-control laws (tenant protection), and the tax code (revenue collection).
Non-issuance is not a mere “technicality.” It is a punishable offense, can derail eviction suits, and may lead to business closure.
Even the smallest “one-door” landlord who charges rent below the RA 9653 ceiling must issue at least a simple written receipt—and if already earning more than ₱250,000 a year, must register and print official BIR ORs.
Tenants should never withhold rent but may resort to barangay conciliation, DHSUD complaints, or BIR whistle-blowing to enforce the right to a receipt.
Landlords who keep proper receipt books not only comply with the law but also improve their credit-worthiness and property valuation.