Occupation Tax Imposed on a Practicing Lawyer

April 16, 1958 BIR RULING NO. 238-58 Mr. Conciso D. Osorio Attorney-at-Law Talaga, Argao Cebu S i r : In answer to the queries propounded in your letter to this Office dated December 21, 1957, I have the honor to inform you as follows: The occupation tax of P75.00 due from you as a practising lawyer should be paid on or before January 20, if pad annually, or, on or before January 20 and July 20 if paid semi-annually, at your option, pursuant to Section 180 of the said Code, as amended by Republic Act No. 2025. However, should you stop your practice of law, you should inform our regional office, that city of your discontinuance of the practice. Since you have manifested in your letter that you were a practising attorney during the preceding year, you had, contrary to your belief, a source of income notwithstanding your resignation from your job on January 1957. The practice of law is a source of taxable income. As a matter of fact every income from whatever source, except those specifically exempt from the income tax, is taxable income. Hence, if your gross income for the preceding year from all sources exceeds P1,800, you are required to file an income tax return, pursuant to Section 45 of the tax code. aisadc Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue