BIR Ruling

February 18, 1970 Action Line c/o The Manila Times P. O. Box 775, Manila Gentlemen : This refers to the letter of Mr. Carlos A. Leonor of 45 Kalyos St., Project 7, Quezon City, dated January 8, 1970, requesting information as to the rates, terms and time of payment of the privilege tax on occupation provided for in the Tax Code as amended by Republic Act No. 6110, otherwise known as the Omnibus Tax Law and whether or not holders of professional titles who are not participating their profession are liable to pay the said tax. In reply, I have the honor to inform you that lawyers, medical practitioners, architects, interior decorators, certified public accountants, civil, electrical, chemical, mechanical, mining, or sanitary engineers, insurance agents and sub-agent, 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, marine chief engineers, mechanical plant engineers, junior mechanical engineers and certified plant mechanics, are subject to the occupation tax of P75.00, pursuant to Section 182(B)(1) of the Tax Code. Land surveyors, chief mates, marine second engineer, pharmacist, registered nurses, chiropodists, tattooers, masseurs, pelotaries, jockeys, professional actors or actresses, state performers, hostesses, statisticians, dietitians, commercial stewards and stewardesses, flight attendants, insurance adjusters, embalmers, midwives, chemist, associate electrical engineers and marine officers are subject to the occupation tax of P50.00, pursuant to Section 182(B)(2)(a)(b)(c)(d)(e) of the Tax Code as amended. cdti The said tax shall be payable at the option of the taxpayer, annually, on or before the twentieth of January or semi-annually, on or before the twentieth of January and July. But any person first beginning an occupation must pay the tax before engaging therein. If the tax is not paid within the time specified, the amount of the tax shall be increased by 25%, the increment to be part of the tax. (Section 180, Tax Code.) Professionals who do not practice their respective professions are not subject to occupation tax, because this tax is payable only by a person engaged in an occupation or calling subject thereto. (Section 178, Tax Code.) Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue