Bureau of Local Government Finance Opinion

February 19, 1998 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Atty. Zalibeth I. Duque Manager-Tax/Legal Department Isla Telecommunication Company, Inc. (ISLACOM) 22/F Trafalgar Plaza HV Dela Costa St., Salcedo Village Makati City M a d a m : This refers to your letter dated February 8, 1998 requesting for a ruling regarding community tax payment. It is represented that Isla Telecommunication Company, Inc. (ISLACOM) was assessed by the different local government units within whose jurisdiction the Company has set up branch offices, with the annual community tax in connection with the renewal of the corporate business permit. In this connection, and consistent with the previous action on similar cases, this Bureau maintains its stand that the above issue has been clarified under Memorandum Circular No. 153, dated June 4, 1992, of the Office of the President, copy enclosed, first paragraph of Section 2 thereof, which states: "Sec. 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 tax certificate shall accordingly be is issued." ATcEDS Accordingly, ISLACOM should pay the Community Tax only once to the City of Makati where its principal office is located and not to LGUs where it only operates/maintains branch offices. It is hoped that this clarifies matters. Very truly yours, (SGD.) LORINDA M. CARLOS Executive Director