BIR Ruling

October 26, 1967 Mr. R. Padeo Km. 102, Mill P.O. Box 105 Baguio City S i r : In reply to your letter dated August 17, 1967, I have the honor to inform you that the persons required by Section 182(B) of the National Internal Revenue Code, as amended, to pay professional or occupation tax are the following: 1. Seventy-five (P75.00) pesos annually for; lawyers, medical practitioners, architects, interior decorators, certified public accountants, civil electrical, chemical, mechanical, mining, or sanitary engineers, insurance agents and sub-agents, customs brokers, marine surveyors, actuaries, registered master plumbers, veterinarians, dental surgeons, opticians, commercial aviators, professional appraisers or connoisseurs of tobacco and other domestic or foreign products, licensed ship masters and marine chief engineers; Mechanical plant engineers, junior mechanical engineers and certified plant mechanics, unless he or she is a professional mechanical engineer and has paid the corresponding fixed tax for mechanical engineers. 2. Fifty (P50.00) pesos annually also for; Land surveyors, chief mates, marine second engineers, pharmacists, registered nurses, chiropodists, tattooers, masseurs, pelotaris, jockeys, professional actors or actresses, stage performers, hostesses, statisticians, dietitians, commercial stewards and stewardesses, flight attendants, insurance adjusters and embalmers; Midwives, unless he or she is a registered nurse and has paid the corresponding fixed tax for nurses; Chemists, unless he or she is a registered chemical engineer and has paid the corresponding fixed tax for chemical engineers; Associate electrical engineers, unless he or she is a professional electrical engineer and has paid the corresponding fixed tax for marine engineers or second engineers. A registered master electrician falls within the category of an electrical engineer pursuant to the opinion of the Board of Examiners for Electrical Engineers dated October 26, 1940, hence subject to the professional tax. However, under the last provision of Section 182(B) of the Tax Code, as amended by Rep. Act No. 4574, a professional who is employed by a firm is exempt from the payment of the professional tax even if his duties therein are performed in his professional capacity, provided he is not permitted by his employer to practice his profession and does not actually exercise his profession outside of his employment. If the professional, though not permitted by his employer to engage in practice, actually engages therein, he is subject to the professional tax. LLjur Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue