Question: The general manager of Singapore Airlines company which operates in the Philippines, decided

to rent a house for his house while assigned here in the Philippines. The lease of the house was for the
account of Singapore Airlines and amounted to P200,000 per month. The taxes imposed on the lease
payments would be:
VAT of 12% since the lease was for a property in the Philippines exceeding P10,000 per month.
VAT of 0% since the lessee is an international airline company and the supply of the lease services
is part of the cost of operating a company engaged in international travel subject to 0% under the
NIRC
VAT of 0% since Singapore Airlines is the official international airline of the Singapore government
VAT of 12% since the lease of the property cannot be directly connected to the international flights made
by the airline company and would not be covered by the 0% VAT