BIR Ruling No. 096-65

August 20, 1965 BIR RULING NO. 096-65 The Municipal Mayor Garchitorena, Camarines Sur S i r : This refers to your letter dated April 30, 1965 requesting opinion as to whether or not the physicians working under the so-called "MARIA-WAY" project are within the purview of "Persons employed in any branch of the service of the Government . . . or persons devoting their entire professional services to any religious, educational, or charitable institution . . ." as embodied in Section 182(C)(7) of the Tax Code. In reply, I have the honor to inform you that to be exempt from payment of the privilege tax under the aforementioned section, it is necessary that the professionals named therein are employed by either the Government or by a private institution, or any similar establishment. An "institution" means an established or organized society or corporation which may be private or public in character. (Words and Phrases, Volume 21, p. 666) The "MARIA-WAY" project, while indubitably a charitable undertaking of the Philippine Medical Association, nevertheless, the members of the Association merely extend extra services therein, not full-time and exclusive. Besides, the project is not a constituted institution or organization. In view thereof, this Office regrets to inform you that the physicians working under the said project are not within the purview of Section 182(C)(7) of the Tax Code, and, therefore, they are subject to the occupation tax prescribed by Section 182(B)(1) of the same Code. Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue