BIR Ruling

November 17, 1970 Mr. Igmedio Abiog Revenue Inspector II Thru the Revenue District Officer Puerto Princesa City S i r : This refers to your letter dated August 10, 1970 requesting information as to whether a midwife working in the malaria center at Puerto Princesa City, a dentist working in the RASAC as Director at Puerto Princesa City he being a retired PN Captain, and a lawyer who is working as a revenue inspector are subject to the occupation taxes. In reply, you are advised that a midwife who is working in a malaria center, if she does not use or exercise her professional knowledge in her employment, is not subject to the occupation tax imposed in Section 182(B) of the Tax Code, as amended by Republic Act No. 6110. A dentist who is working in the RASAC as Director is not also subject to the occupation tax. However, a lawyer who is working as a revenue inspector in the Bureau of Internal Revenue is subject to the occupation tax imposed in Section 182(B) of the Tax Code, as amended for the reason that he uses or applies his professional knowledge in his employment. In this connection, Section 14 of Republic Act No. 6110, amending Section 45 of the Tax Code, which is cited in your letter, enumerates the individuals who are required to file income tax returns. Under this provision, a professional is required to file an income tax return regardless of whether he derived any income or not for the taxable year. Moreover, for purposes of said provision, an individual is deemed a professional if, during a taxable year, he passes a government examination for the practice of a profession or remains a registered member of any profession covered by such examination, regardless of whether or not during that taxable year he actually practice his profession. In short, a professional is required to file an income tax return, even if he has not actually practiced his profession. On the other hand, if a professional does not practice his profession, he is not liable for the payment of the occupation tax. aisadc Very truly yours, CONRADO P. DIAZ Acting Commissioner of Internal Revenue