BIR Ruling

February 11, 1970 Mr. Alfonso A. Dantes OIC, Administrative Department Social Security System East Avenue, Quezon City S i r : This refers to your letter dated January 27, 1970 requesting clarification of Section 182(B) of the Tax Code, as amended by Republic Act No. 6110 relative to the liability to the occupation tax of professionals in government offices. In reply, I have the honor to inform you that professionals employed in government agencies, instrumentalities, officers or government owned or controlled corporations who use or exercise the knowledge of their profession in their employment are subject to the occupation tax imposed in Section 182(B) of the Tax Code, as amended by Republic Act No. 6110. Lawyers and Certified Public Accountants who are performing purely clerical work in their employment are not subject to the aforesaid tax. It should be noted that the previous provision of Section 182(C) (7) of the Tax Code which exempted persons employed in any branch of the service of the Government of the Philippines whose entire professional services are devoted exclusively thereto or are applied under its direction, from the professional tax has been eliminated by Republic Act No. 6110. Such elimination is sufficiently explicit and indicative of legislative intent to reach by taxation professionals in the employ of the Government. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue