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You don’t need a PTR to secure a BIR registration

  • Writer: Vibar Peña & Associates
    Vibar Peña & Associates
  • Oct 5, 2020
  • 2 min read

WHAT IS PROFESSIONAL TAX AND WHO MAY BE REQUIRED TO PAY? Every person legally authorized to practice his profession (those requiring government examination) shall pay the professional tax to the province where he practices his profession or where he maintains his principal office in case, he practices his profession in several places.


HOW MUCH IS THE TAX? The amount of professional tax levied to a professional shall in no case exceed PhP 300.

WHEN IS IT DUE FOR PAYMENT? The tax shall be payable annually on or before the 31st day of January and must be paid in full before the practice of the profession.


PENALTIES IN CASE OF LATE PAYMENT? A surcharge of 25% of the amount of taxes, fees or charges not paid on time and an interest of 2% per month of the unpaid taxes.


WHO ARE EXEMPT? Professionals exclusively employed in the government shall be exempt from the payment of this tax.


WHERE DO YOU USE THE PTR NUMBER? Any person subject to the professional tax shall write in deeds, receipts, prescriptions, reports, books of account, plans and designs, surveys and maps, as the case may be, the number of the official receipt issued to him.


DO YOU STILL NEED TO PAY LOCAL BUSINESS TAX? NO. Under Bureau of Local Government Finance (BLGF) Memorandum Circular 001-2020, a professional who has paid his/her professional tax shall be exempt from the payment of business permit fee in the operation of his/her clinic or office. However, he is still required to secure a business permit, at no cost, from the concerned LGU during the registration of office/clinic and renewal thereof, subject to a duly enacted local ordinance.

Still, the LGUs may impose and collect other applicable fees and charges (i.e., garbage fee, sanitary inspection fee, occupancy permit fee, etc.), the amount of which shall be reasonably commensurate to the cost of regulation or provision of service, as may be provided under a duly enacted local ordinance; provided, however, that no service charge shall be based on capital investments or gross sales or receipts of the persons or business liable therefor (DOF Local Finance Circular No. 001-2019, June 12, 2019).


IS PTR A REQUIREMENT TO REGISTER WITH THE BIR? In the latest BIR Registration Checklist of Documents (Annex A of RMC No. 57-2020), the PTR is no longer a required document in securing a registration as a self-employed professional with the Bureau. The following documents are required in the list instead:

• 2 original copies of accomplished BIR Form No. 1901 (version January 2018) • 1 photocopy of valid Professional Regulation Commission (PRC) ID showing address or proof of residence or business address



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