Bureau of Local Government Finance Opinion

August 11, 2015 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Ms. Florida M. Dijan, DPA, CESO III Regional Director Department of the Interior and Local Government Region III Diosdado Macapagal Regional Government Center Maimpis, City of San Fernando, Pampanga Madam : This refers to the letter dated May 12, 2015 of Ms. Herminia B. David, Acting Assistant Municipal Treasurer, Guimba, Nueva Ecija, seeking legal opinion relative to the imposition of license fees on dental practitioners which was referred to this Bureau for appropriate action. In this connection, please be informed that the opinion embodied in the letter dated December 6, 1999 addressed to Dr. Flor S. Enriquez, former President of the Philippine Dental Association on the request for opinion on whether cities or municipalities may validly require dentists to secure a Mayor's Permit before they can practice their profession and whether a dental clinic may be taxed as a business establishment, it was held as follows: ADCIca a. Such professional who has paid the corresponding professional tax to the province where he practices his profession shall be entitled to practice his profession in any part of the Philippines without being subjected to any other national or local tax, license or fee, including the Mayor's Permit or license fee, for the practice of such profession. b. As to dental clinics, they are established as a direct consequence of the practice of the dental profession. They are, necessarily, for the exercise of such a profession. c. Therefore, to impose a graduated tax on a dental clinic on the premise that it is a "business establishment rendering or offering to render professional services" would be to impose a local tax on the practice of profession. This would be in contravention of the Local Government Code. It is the view of this Bureau that said opinions still hold until such time that the same are modified or rescinded accordingly by the same administrative authority or by the Court of competent jurisdiction. We hope this will help clarify matters. Very truly yours, (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director