Habitual engagement is normally manifested by registration with the appropriate

government agencies as a dealer or as a service provider in a particular trade or

vocation but non-registration is not an excuse to business taxation.
A casual sale transaction is not a business even if profit is derived from the
transaction. On the other hand, the regular selling of goods or services for a profit is
a business despite the absence of actual profit from such activity.

Illustration 1
Mrs. Ellerton, a medical practitioner, sold his principal residence for P10M.
The sale of real properties by a non-realty dealer is a casual sale not made in the
course of business; hence, it is exempt from business tax.
Illustration 2
Mang Merto, a realty dealer, purchased shares of stocks as investment and sold
them at a profit.
The acquisition and sale of stocks investments by a realtor are not made in the
course of the realty business and are not subject to business tax. If Merto were a
security dealer, the transaction would be considered made in the course of
business and hence, subject to business tax.
Illustration 3
Joshua is a proprietor regularly engaged in trading merchandise. During the month, he
reported the following:
Sales of merchandise 800,000
Sale of personal car 1,200,000
The 800,000 sales is subject to business tax. The 1,200,000 sales is outside the
merchandising business. The same shall not be subjected to business tax since
Joshua is also not a car dealer
Privilege Stores
Privilege stores (most commonly known as “tiangge”) are stalls or outlets not
permanently fixed to the ground which are put up during special events such
as festivals or fiestas (RR16-2013).