Tax Liability of Professional, Associate and Assistant Electrical Engineers

June 17, 1959 BIR RULING NO. 305-59 Mr. Vicente P. Leyva 160 A. Luna St. Mandaluyong, Rizal S i r : With reference to your letter dated May 29, 1959, I have the honor to inform you that electrical engineers are subject to the occupation tax of P75.00 per annum imposed in section 182(B)(1) of the National Internal Revenue Code, as amended. In this connection, the term "electrical engineers" as used in said section of the same Code includes professional, associate and assistant electrical engineers as classified in Republic Act No. 184 in view of the fact that the National Internal Revenue Code does not distinguish between professional, associate and assistant electrical engineers. It is enough that the practitioner is an electrical engineer to be subject to the occupation tax aforestated. A registered assistant electrical engineer who desire to engage in a contracting business, such as residential house electrical installation, is subject, in addition to the occupation tax, to the fixed and percentage taxes imposed in sections 182(A)(1) and 191, respectively, of the Tax Code, as amended. However, if he is merely employed as an assistant electrical engineer in a business establishment assuming the duties, to wit (1) to take charge of or supervise the operation, tending and maintenance of any electric generating plant employing voltages up to 750 volts, or to take charge of or supervise any electric wiring or installation of utilization equipment; or (2) to take charge of or supervise the construction or installation of any electric supply equipment for public service communication or signalling or for X-ray or electronic equipment requiring the employment of dangerous voltages, then, he is merely subject to the occupation tax of P75.00 per annum as aforestated. It is understood that an electrical engineer, aside from being subject to the taxes aforementioned, as the case may be, is further subject to the income and residence taxes, pursuant to section 24 of the Tax Code and Commonwealth Act No. 465, as amended, respectively. cdll Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue