Tax filing BIR Philippines

Professionals Will Be Exempted From Business Permit Fees!

Good news to all the professionals who run their own offices or clinics! The Department of Finance (DOF) has issued a new set of guidelines to local government units on taxes and other charges to professionals, exempting them from paying for the business permit fees. 

The DOF released a statement on Tuesday saying that among the salient features of Local Finance Circular (LFC) 001-2019 is the exemption of professionals from paying business permit fees. The LFC was signed by Finance Secretary Carlos Dominguez III last June 12.

They further explained that under the guidelines, while professionals still need to secure business permits from LGUs, such should be at no cost at all during the registration or renewal of the operation of their clinics or offices, given that such permits cannot regulate the practice of their profession.

The reason behind this is because the regulations over the practice of professions are within the exclusive domain of the respective agencies or regulatory boards empowered by law to supervise and regulate professions.

Meanwhile, business taxes will only be applicable to professionals who are verified to be engaged in distribution, trading, or selling of goods which are not constituted in their professions.  The LGU will have the authority to impose a business permit fee during their registration and renewal of operation for this case. 

The new set of guidelines were made to address the complaints on LGU’s improper imposition of local taxes, fees, and other charges on professionals. The LFC was designed to ensure fair, uniform, and proper implementation of the provisions of the Local Government Code on the taxability of professionals relative to the practice of their professions. It will also complement efforts in streamlining and facilitating government transactions, as mandated under Republic Act 11032 or the Ease of Doing Business Law.



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