BIR Ruling

August 23, 1973 Mr. Ireneo S. Tilan Lagawe, Ifugao S i r : In reply to your letter dated February 16, 1973, I have the honor to inform you as follows: 1. Professionals employed in this government service are subject to the payment of the occupation tax imposed in Section 182(B) of the Tax Code as amended by Republic Act No. 6110, if they use the knowledge of their profession in their employment. Accordingly, a CPA employed as a clerk is not subject to the occupation tax, since he does not use the knowledge of his profession in his employment. As to whether said professionals can engage in the private practice of their profession, it is believed that this question should be answered by the Commissioner of Civil Service. 2. Non-professionals employed as accountants or auditors in the government service are not subject to the payment of the occupation tax. cdtech Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."