Non-reduction of the Amount of Occupation Tax

July 21, 1958 BIR RULING NO. 387-58 Mrs. Cristina L. Villabona 950-I Isaac Peral St. Manila M a d a m : In answer to your letter of the 3rd ultimo, requesting, for the reasons stated therein, reduction of the amount of occupation tax, plus penalty assessed by this Office against you for the years 1956 and 1957, I have the honor to inform you as follows: cdt Section 180 of the National Internal Revenue Code, as amended by Republic Act No. 1612, but before it was further amended by Republic Act No. 1856, provided as follows: "All fixed taxes shall be due and payable on or before the twentieth of January of each year. But any person first beginning a business or occupation must pay the tax before engaging therein." From the abovequoted provisions, it is clear that the occupation tax (which is a fixed tax) is due and payable in full, even if a person first engaging in an occupation commences it during the latter part of a year. As nurses were subject to the occupation tax for the first time only only August 24, 1956, the date Republic Act No. 1612 took effect, they are deemed, for purposes of said tax, to have first practiced their profession only on that date and, therefore, liable for the full amount of the tax. Accordingly, as a nurse deemed to have first practiced your profession on August 24, 1956, you are liable for the sum of P50.00, the full amount of the occupation tax imposed upon nurses for the year 1956. You will, therefore, see that in assessing you the full amount of the tax in question, this Office has not given retroactive application to Republic Act No. 1612. The amount of your tax liability for the year 1956 has not been affected by the amendment introduced to the aforesaid Section 180 and other sections of the Tax Code by Republic Act No. 1856, because said Act took effect only on June 22, 1957. As regards your contention that you are not liable for the occupation tax on the ground that your gross monthly receipts do not exceed P200.00, please be advised that Section 182(C)(1) of said Code, which exempts from the fixed tax persons whose gross monthly sales or receipts do not exceed P200.00, refers only to those persons engaged in business who are subject to the fixed taxes prescribed in Section 182(A), subparagraph (1) and (3). As you are not engaged in any business subject to any of said fixed taxes, the exemption provided for in Section 182(C)(1) does not apply to you. Persons subject to the occupation tax can claim exemption only under the provisions of sub-paragraph 7, paragraph (C) of Section 182. In view of the foregoing, your request has to be, as it is hereby denied. It will be highly appreciated if you can settle the balance of your liability as soon as possible. cdpr Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue