BIR Ruling

July 29, 1970 Action Line c/o The Manila Times P.O. Box 775, Manila Gentlemen : This refers to the letter dated April 14, 1970 of Juanita R. Roque which was forwarded to the Bureau of Commerce stating the following: "Should a CPA who intends to practice her profession starting May 1970 be required to pay the professional tax for the whole year of 1970 or only for the period May-Dec. 1970? Must a new CPA first register with the Bureau of Commerce before she can practice her profession?" cd In reply, I have the honor to inform you that occupation tax is payable, at the option of the taxpayer, annually, on or before the 20th of January or semi-annually, on or before the 20th of January and July. But every person first beginning an occupation must pay the tax before engaging therein. (Sec. 180, Tax Code, as amended) Consequently, if the writer started practising her profession as certified public accountant in May, 1970, she should have paid the said tax on or before the said month. If she had chosen to pay the tax semi-annually, she should have paid only the sum of P37.50 for the 1st semester of 1970. In such case, she should pay the tax in the sum of P37.50 for the 2nd semester of 1970 on or before July 20, 1970. Under Section 181 of the Tax Code, when an occupation subject to fixed tax is newly begun during any year, the tax shall be reckoned from the commencement of the current semester. It is for this reason that the tax paid by the writer on or before May 1970 was reckoned from January 1, 1970 which is the beginning of the 1st semester of 1970. The question of whether or not a new certified public accountant should first register with the Bureau of Commerce before he/she can practice the profession is not within the jurisdiction of this Office. cdt Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue