BIR Ruling

July 30, 1970 Abbott Laboratories (Philippines) P. O. Box 29, Makati Rizal, D-708 Attention: Mr . Alfredo Gandionco Controller Gentlemen : This refers to your letter dated June 26, 1970 stating the following: "We have pharmacists and some chemists in our employ who are assigned to the Finishing Section. Their work consists mainly of filling bottles either with liquid or tablet labelling and cartoning. Actually, they do not do any compounding." cdt "The question is, are they exempted from the occupation tax just as a registered pharmacist employed as Medical Technician is exempted Per" BIR Ruling 70-028 dated May 19, 1970." In reply, I have the honor to inform you that the job of packing medicinal preparations which is being done by the pharmacists and chemists of your Finishing Section is a delicate one necessitating the use or exercise of the knowledge of their respective profession to insure proper packing and labelling of said medicinal preparations. Hence, and if one of the qualifications for their employment is that they should be pharmacists and chemists, they are subject to the professional tax imposed under Section 182(B) of the Tax Code, as amended by Republic Act No. 6110. (BIR Ruling No. 70-017, April 17, 1970). BIR Ruling No. 70-028 dated 19, 1970 cited in your letter is not applicable, because in said ruling we ruled that a medical technician does not exercise the functions of a pharmacist: hence, said medical technician is not subject to the occupation tax. In the instant case, your employees in question use or exercise their profession as pharmacists and chemists. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue