DoF: Professionals need not pay biz permit fees
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Tue, 02 Jul 2019 16:25:43 +0000
PROFESSIONALS are now exempt from paying business permit fees for the operation of their offices or clinics, according to new rules issued by the Department of Finance (DoF).
In a statement on Tuesday, the Finance department said Secretary Carlos Dominguez 3rd issued the new rules on June 12 under Local Finance Circular 001-2019.
These rules state that, while professionals still need to secure business permits from local governments, these should come at no cost during the registration or renewal of the operation of their clinics or offices, since these cannot regulate the practice of their profession.
This is because regulations on the practice of professions are within the exclusive domain of the respective agencies or regulatory boards empowered by law to supervise and regulate them, the DoF explained.
Local governments, however, may impose a local business tax on professionals if they are verified to be selling, trading or distributing goods of any kind or involved in trade and other business activities outside of their professions, it said.
In this case, the local governments can impose a business permit fee during the registration and renewal of the operation of the office or clinic of the concerned professional.
The Bureau of Local Government Finance is tasked to monitor the compliance of local governments with the circular and provide technical assistance in following the guidelines.
The new guidelines seek to address reports and complaints received by the Finance department on the improper imposition of local taxes, fees and other charges on professionals by local governments, Finance Undersecretary Antonette Tionko said.
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The objective of the new rules is to ensure the “fair, uniform and proper implementation” of the provisions of the Local Government Code governing the taxability of professionals relative to the practice of their profession, and to complement efforts in streamlining and facilitating government transactions, as mandated under Republic Act 11032 or the Ease of Doing Business law, the department said.
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