Bureau of Local Government Finance Opinion

October 3, 2002 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully returned to the City Treasurer, Laoag City, her letter dated September 03, 2002 seeking clarification regarding the place of payment of community tax of branch, sales office and warehouse of juridical entity. That Office cited Section 160 of the Local Government Code (LGC) of 1991 which provides that the community tax shall be paid in the place where the principal office of the juridical entity is located. However, that Office likewise cited Article 246 (e) sub. paragraph (3) of the Implementing Rules and Regulations (IRR) of the LGC which states that: "In case of branch, sales office or warehouse where sales are made and recorded, the corresponding community tax shall be paid to LGUs where such branch, sales office or warehouse is located." CITcSH In this connection, and consistent with previous action on similar cases, this Bureau expresses the view that Article 246 (e) (3) of the IRR has been clarified under Section 2 of Memorandum Circular No. 153, dated June 04, 1992, of the Office of the President, copy attached, which states: " Section 2 . The community tax shall be paid in the place of residence of the individual, or in the place where the principal office of the juridical entity is located and, upon payment thereof, the corresponding community tax certificate shall accordingly be issued." (Underscoring supplied.) Accordingly, the sales office or branch of corporations and other juridical entities shall not be liable to pay the community tax. Stated otherwise, said corporations and other juridical entities should pay the community tax only once, to the local government units where their principal offices are located. Be guided accordingly. (SGD.) MA. PRESENTACION R. MONTESA Executive Director