New local tax rules released, includes professionals


Posted at Jul 02 2019 01:38 PM

Taxpayers file their returns before the Bureau of Internal Revenue in this file photo. New rules for local taxes, including those on professionals were released, the Department of Finance said on July 2, 2019. Jonathan Cellona, ABS-CBN News/File

MANILA -- Business permits for professionals such as doctors will be free under new regulations released by the Department of Finance in response to taxpayers' complaints, the agency said Tuesday.

The business permits for professionals from local government units should be at "no cost at all during the registration or renewal of the operation" of clinics and offices, the DOF said.

A local business tax may be imposed, however, if the professional is engaged in "selling, trading or distributing goods of whatever kind or involved in trade and other business activities that do not constitute the practice of their professions," the DOF said.

Professionals working in government will be exempted from professional tax unless he or she is authorized to practice outside official functions, according to the DOF.

The professional tax imposed by LGUs should not exceed P300 or the rate provided under a local ordinance, subject to adjustment not exceeding 10 percent every 5 years, the DOF said.

The community tax on individuals, including professionals, may be imposed on individuals and corporations, excluding general professional partnerships, it said. 
The community tax will be P5 plus P1 for every P1,000 of income from the exercise of profession, but must not exceed P5,000, the DOF said.