Clarification as to the Conflicting Opinions Issued by the Department of Finance (DOF) and the Bureau of Local Government Finance (BLGF) Concerning Professionals Maintaining Clinics/Office Incidental to the Practice of Their Professions

March 5, 2016 BLGF OPINION NO. 002-2016 POLICY, PLANNING, PROGRAMING AND STANDARD DIVISION Hon. Austere A. Panadero Undersecretary Department of the Interior and Local Government (DILG) DILG-NAPOLCOM Center EDSA corner Quezon Avenue West Triangle, Quezon City SUBJECT : Clarification as to the Conflicting Opinions Issued by the Department of Finance (DOF) and the Bureau of Local Government Finance (BLGF) Concerning Professionals Maintaining Clinics/Office Incidental to the Practice of Their Professions Sir : This refers to your letter dated 18 February 2016 addressed to Secretary CESAR V. PURISIMA, Department of Finance (DOF), forwarded to this Bureau for comment/recommendation, seeking clarification on the positions of the DOF and BLGF on the issue of professionals operating and/or maintaining clinics or offices incidental to the practice of their professions. It was submitted that the DOF issue Opinion dated 06 December 1999, which provides: "a person engaged in the practice of a profession requiring government examination such as a dentist, is, by express provision of the Local Government Code, exempt from this requirement (Business Permit)." In relation to this, the Bureau of Local Government Service (BLGS) of the DILG issued an Advisory dated 23 July 2013 disseminating the copy of said DOF Opinion. On the other hand, the BLGF issue Opinion dated 10 March 2003, signed by then Executive Director, Ms. PRESENTACION R. MONTESA, addressed to Mr. Joselito M. Laniwan of Catarman, Northern Samar, which provides: ETHIDa "a Mayor's permit fee may no longer be collected from professionals who are paying the professional tax like doctors and dentists. However, if they maintain a clinic, the operation of such clinic shall be subject to the payment of Mayor's permit fee, the business tax based on gross receipts, as well as the regulatory fees or service charges imposed by the cities or municipalities." Due to this later development, that Department rendered DILG Legal Opinion No. 26, series of 2014 addressed to Dr. Lolita P. Quilaneta , President, Philippine Obstetrical & Gynecological Society, Region 8 Chapter, quoting verbatim the aforementioned BLGF Opinion of 10 March 2003. In view of the foregoing, it appears that inconsistency between the two (2) opinions rendered by the DOF and BLGF exists. We agree, and therefore to rectify the cause of inconsistency brought about by the BLGF Opinion of 10 March 2003, attached herewith is the BLGF Opinion dated February 25, 2015 addressed to Dr. Anthony Asis of Trece Martires City, in effect informing that the opinion issued by the Secretary of the DOF still holds and thereby modifying and/or repealing our previous actions on the issue which are inconsistent with the said DOF Opinion, thus: ". . ., all previous rulings and/or opinions issued by this Bureau relative to the herein subject matter which are inconsistent with the views expressed herein are hereby modified and/or repealed accordingly." We hope that this will help clarify matters. Very truly yours, (SGD.) JOCELYN T. PENDON OIC-Executive Director