BIR Ruling

August 9, 1976 Mr. Arturo P. Festin 1918 Indiana, Malate Manila S i r : In reply to your letter dated July 14, 1976, I have the honor to inform you that a practicing doctor in operating his medical laboratory where he accepts all kinds of medical jobs for diagnosis with the help of another doctor and medical technologists, is not liable to the 3% contractor's tax imposed under Section 191 of the Tax Code. This Office believes that said activities constitute part of the practice of the medical profession. As a practicing doctor, your client is liable for the occupation tax of P75.00 per annum payable to the provincial treasurer or city treasurer of the province or city where he practices his profession, pursuant to Section 12 of Presidential Decree No. 231. cdta Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3