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Hospitals Operated by a Taxable Entity

BIR Ruling No. 611-58 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Oct 28, 1958

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October 28, 1958 BIR RULING NO. 611-58 The Regional Director BIR Regional District No. 5 San Pablo City S i r : With reference to your letter dated October 22, 1958, you are informed that only those professionals employed in hospitals and similar establishments not conducted for private gain and whose entire professional services are devoted exclusively thereto are exempt from the occupation tax. Hospitals operated by a taxable entity is clearly one conducted for private gain because the profits therefrom will certainly inure to the benefit of the individuals composing the entity. The professionals employed in such hospitals are, therefore, subject to the occupation tax. Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue

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