16/01/2020
CLINICS OR OFFICES OF PROFESSIONALS ARE EXEMPTED FROM BUSINESS PERMIT FEES (BUSINESS TAX)
- INCLUDING REALTY OFFICES OF LICENSED REAL ESTATE SERVICE PROFESSIONALS
Department of Finance Secretary Carlos G. Dominguez signed the Local Finance Circular No. 001.2019 last June 12, 2019, the guidelines on the imposition and collection of local taxes, fees, and charges on professionals.
The Circular is issued to address reports and complaints on the improper imposition and collection of taxes, fees and charges on professionals by LGUs under the pretext of the general welfare clause of the LGC, and to clarify the circumstances when professionals may avail certain tax exemptions.
Section 6 of the Circular specifies that "...a professional who has paid his/her professional tax shall be exempt from the payment of business permit fee in the operation of his/her clinic or office."
It is still required for professionals with offices or clinics to secure a business permit "at no cost" from the concerned LGU during the registration or renewal of offices or clinics.
Should there be any selling, trading or distributing of any articles of commerce of whatever kind, or involved in the function of trade, or undertake any business activity that does not constitute the practice of the profession, he/she shall be liable to pay the annual Local Business Tax (LBT).
You can download the Circular here: https://bit.ly/2Tl1VCG