Bureau of Local Government Finance Opinion

April 14, 2003 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully returned to the Provincial Treasurer of Ilocos Sur, Vigan City, his letter dated January 14, 2003 requesting clarification as to whether that Office could issue Professional Tax Receipt (PTR) to non-bar passers but granted commission as Notary Public by authorities concerned. HIESTA Section 139 of the Local Government Code (LGC) of 1991 provides as follows: "Sec. 139. Professional Tax . (a) The province may levy an annual professional tax on each person engaged in the exercise or practice of his profession requiring government examination at such amount and reasonable classification as the sangguniang panlalawigan may determine but shall in no case exceed Three Hundred Pesos (P300.00). "xxx xxx xxx." It is clear from the aforequoted provisions that only those who have passed the bar examination, or board or other examinations conducted by the Professional Regulation Commission (PRC) are subject to professional tax. Moreover, under Local Finance Circular No. 6-94 dated October 21, 1994, copy enclosed, the Provincial, City and Municipal Treasurers are directed not to issue privilege tax receipts (PTR) to registered professionals under the supervision of the PRC unless they present valid professional licenses issued by the Commission. In view thereof, it may be stated that non-bar passers shall not be subject to the payment of the professional tax, which is a requirement before the issuance of the PTR. Said non-bar passers should only be subject to the occupation fee imposed under a duly-enacted ordinance of the city or municipality. Likewise, the income derived by such non-bar passers as notary public should be subject to the income tax imposed by the national government. Be guided accordingly. (SGD.) MA. PRESENTACION R. MONTESA Executive Director