Lessor’s Obligation to Issue Rent Receipts in the Philippines

A comprehensive legal overview (updated June 2025)

Quick take-away Every Philippine lessor—big or small, residential or commercial, VAT-registered or not—must issue an official rent receipt (OR) for every single payment received. The obligation exists under three independent bodies of law:

Civil & special rental statutes (e.g., Civil Code, Rent Control Act)

National Internal Revenue Code (NIRC) & BIR regulations

Local ordinances / revenue codes (supplemental) Failure to comply can trigger: (i) tax fines + possible imprisonment, (ii) administrative sanctions, and (iii) private civil remedies in favor of the tenant.

1. Statutory Bases

Source of law	Key section	Core rule
Civil Code (Art. 1654 ¶3)	“The lessor is bound… to maintain the lessee in peaceful and adequate enjoyment of the lease.” — The Supreme Court has long read “adequate enjoyment” to include the right to documentary proof of payment, because without it the lessee is constantly exposed to double-payment or eviction suits.
Republic Act No. 9653 (Rent Control Act of 2009), §5(b)	Residential units (monthly rent ≤ PHP 10 000 — adjusted periodically by HUDCC) must be supplied a free receipt for every rent, deposit or advance. Refusal is an administrative offense; Lessor can be fined PHP 5 000–15 000 and/or imprisoned 1 month–6 months.
National Internal Revenue Code (NIRC), §237	“All persons subject to an internal revenue tax shall, for each sale or lease of services, issue an Official Receipt showing the date, amount, VAT (if any) and other prescribed details.”
BIR Revenue Regulations (RR 18-2012, 16-2005, RR 10-2015, RMC 55-2019, et al.)	Flesh out printing authority (ATP), serial numbering, e-receipt migration, reporting under the e-Invoicing System (EIS) for top taxpayers and exporters.
Local Government Code + city/municipal Revenue Codes	Many LGUs require lessors to show OR books when renewing business permits; some (e.g., Quezon City “Rental Regulation Code”) impose spot fines for non-issuance.

2. Scope: Who Must Issue?

Lessor type	Must issue OR?	Tax-Type Overlay
Individual owner of a single apartment	Yes (RA 9653 + NIRC)	Likely non-VAT; subject to 3 % percentage tax if gross rentals > PHP 3 M/yr (unless opted to VAT).
Condominium corporation / developer	Yes	Often VAT-registered (12 % on residential leases above PHP 15 000/mo and on all commercial leases).
Commercial lessor (malls, BPO buildings)	Yes	VAT; large taxpayer; mandatory e-OR / EIS from July 1 2024.
Sub-lessor / co-living operator (Airbnb host, “bedspace”)	Yes	Still a “lessor” of services under §108 NIRC.

No statutory exemption exists for “informal” landlords—size or informality is irrelevant.

3. Minimum Contents of a Valid Rent Receipt

Name, TIN, and business style of lessor
Serial number + Authority-to-Print (ATP) or EIS QR-code
Date of issuance (must be the same date payment is received)
Name of tenant and unit / property address
Period covered (e.g., “Rent for 01 – 30 June 2025”)
Amount in figures & words (separating basic rent, VAT, CUSA, other charges)
Signature (or digital certificate) of authorized representative

🔍 Withholding Tax Reminder For commercial leases, the tenant usually withholds 5 % Expanded Withholding Tax (EWT) and issues BIR Form 2307 together with payment. The OR must reflect the gross rental; the tenant’s withholding certificate is attached to settle the net.

4. Timing and Manner of Issuance

Rule	Practical translation
“Upon payment” – §237 NIRC	Issue simultaneously (cash) or on same day (checks, bank transfers).
Duplicate copy – RR 18-2012	Lessor keeps Book-copy; Original goes to tenant. If e-receipt, a PDF or QR link is emailed/downloaded.
Monthly rentals	One OR per month, even if tenant pre-paid six months; note the coverage period.
Security deposit / advance rent	Separate ORs, expressly labelled to avoid confusion with regular rent; return deposit requires a cancellation or “deposit applied” notation.

5. Electronic & Cloud-Based Receipts (2023–2025 Transition)

Milestone	What changed?
RMC 55-2019	Allowed voluntary adoption of Electronic Receipting/Online Point-of-Sale (EROS) systems.
TRAIN Law (RA 10963)	Introduced §237-A: mandatory e-invoicing/e-receipting for large taxpayers & exporters.
EIS soft-launch (July 1 2024)	Designated large real-estate lessors (gross sales > PHP 100 M) must transmit OR data to BIR in real time; QR code on printed copy suffices as “issued.”
Small lessors	May continue using pre-printed ORs until BIR fully rolls out EIS Phase 2 (target 2027).

6. Penalties for Non-Issuance

Violation	Statute	Penalty
Failure/refusal to issue OR	§264 NIRC	Fine PHP 1 000 – 50 000 and/or imprisonment 2 – 4 years (first offense).
Use of un-authorized or expired OR booklet	§264-A NIRC	Additional 20 % surcharge of gross sales + confiscation/destruction of booklets.
Repeated violation or intent to evade	§265 NIRC	Fine PHP 50 000 – 100 000 and imprisonment 2 – 6 years.
Refusal under RA 9653 (residential)	§13 RA 9653	Fine PHP 5 000 – 15 000 and/or 1 – 6 months imprisonment; HUDCC/DOJ may mediate.

Tenants may also:

Withhold future rent until OR is given (Civil Code Art. 1658).
File a BIR complaint (anonymous via the electronic eComplaint portal).
Lodge small-claims for refund of deposits improperly documented.

7. Interplay with Documentary Stamp Tax (DST)

Section 195, 196 NIRC imposes DST on leases exceeding one year (PHP 3.00 for the first PHP 2 000 of rent, plus PHP 1.00 for every PHP 1 000 thereafter, per year).
The DST is paid when the lease contract is notarized not upon each OR; but the OR must reflect “DST paid under Doc. No. ___, Book ___” for reference.

8. Special Situations

Scenario	Treatment
Agricultural leasehold (RA 3844, RA 6389)	Tenant-farmers must receive a “quittance” (receipt) for rental, validated by the Barangay Agrarian Reform Committee (BARC).
Rent-to-own schemes (Conditional Sale)	Installment payments are not rent; issue Sales Invoice, not OR.
Transient rentals (≤ 30 days)	Classified as hotel/inn service; still issue OR; subject to 12 % VAT unless gross < PHP 3 M & opted for 3 % percentage tax.
Government as lessee	Lessor’s OR is mandatory for COA liquidation; VAT zero-rating does not apply (GOCCs are not “export sales”).

9. Sample Receipt Wording (for non-VAT residential unit)

OFFICIAL RECEIPT
Series No.: 000123   OR No.: 000456
Date: 17 June 2025

Received from: Juan Dela Cruz (Tenant)
Address of leased premises: Door 3-B, 123 Mabini St., Brgy. Pinya, Quezon City
Amount: P   8 000.00   (Eight Thousand Pesos Only)
For:  Rent for the period 01 – 30 June 2025

      Basic Rent           P   8 000.00
      VAT / Percentage Tax       N/A
      Others (specify)            –––––
      TOTAL                P   8 000.00

Received by: ___________________
               Maria Santos
               (Lessor/Authorized Rep.)
TIN 123-456-789-000 / Non-VAT
ATP No. XYZ-112233 valid until 12-31-2026

10. Practical Compliance Checklist for Lessors (2025)

✅ Register with BIR (Form 1901/1903) → obtain TIN & COR.
✅ Secure ATP for OR booklets or enroll in EIS if covered.
✅ Display COR + OR series conspicuously at the leasing office.
✅ Issue OR on the same day each payment hits the landlord’s hands/bank.
✅ Keep duplicate copies (hard copy or PDF) for 10 years (Sec. 235, NIRC).
✅ File percentage-tax/VAT returns & DST (if applicable).
✅ Renew mayor’s permit annually; submit books when required.

11. Key Takeaways for Tenants

Always demand the OR. You are legally entitled to it free of charge.
Match OR details to what you actually paid (period, amount, unit).
Keep ORs, 2307s, and lease contract together—they are your proof against eviction or excessive rent hikes.
Report violations discreetly: BIR hotline #8538-3200; HUDCC Hotline #0917-797-0286.

Conclusion

The duty to issue rent receipts in the Philippines stands on a tripod of civil, fiscal, and consumer-protection rules. It is not optional: a landlord who withholds or falsifies receipts risks tax prosecution, criminal liability under the Rent Control Act, loss of business permits, and private suits by tenants. Conversely, tenants who conscientiously collect and preserve ORs gain powerful leverage—proof of payment, defense against unlawful detainer, and a paper trail for tax or subsidy claims.

While the advent of e-receipts and the E-Invoicing System is modernising compliance, the core principle remains unchanged since Spanish-era recibos: “No rent is truly paid until it is receipted.”