Professional Taxes: What are they for?

A professional tax, or occupation tax, is a tax charged on any one who is practicing a profession such as accountant, lawyer, doctor or engineer.  It is a tax which a professional must pay in order to be given the privilege to practice a professional service.

In the Philippines, the Local Government Code requires the payment of professional taxes on professions requiring government examination.  To elucidate, the Local Government Code states:

"SEC. 139.  Professional Tax.  

"a) The province may levy an annual professional tax on each person engaged in the exercise or practice of his profession requiring government examination as such amount and reasonable classification as the Sangguniang Panlalawigan may determine but shall in no case exceed Three hundred pesos (P300.00).

"(b) Every person legally authorized to practice his profession 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: Provided, however, That such person who has paid the corresponding professional tax

shall be entitled to practice his profession in any part of the Philippines without being subjected to any other national or local tax, license, or free for the practice of such profession."

By express provision, a professional may practice his profession anywhere in the Philippines provided he pays an annual tax not exceeding P300.  Payment of professional tax must be done annually on or before the 31st day of January.

Any professional who intends to pay his professional tax must present his latest Official Receipt and/or Government License ID before the local government accepts payment.

But technology seems to be evolving and I am amused that in some cities or municipalities, they allow photos of your Government IDs and/or Official Receipts for presentation.

I have stored in my Smart Phone a picture of my government ID and latest Official Receipt of payment of my Professional Tax. I have yet to test if these will be allowed when I try to pay my Professional Tax next year.