Are you a professional who is financially struggling to open up and operate your own office or clinic? There’s good news! The Department of Finance has a new important development for people like you, professionals in various fields. They introduced a new circular that will give you an exemption from paying the fees for business permits.
This means that you do not need to pay any fee to obtain or get your business permit. Expert accounting services in the Philippines reiterate that if you are financially struggling, this is a perfect opportunity for you to finally create and start operating your own office or clinic. For instance, I=if you are a doctor or a lawyer, you can focus on your expertise and be able to contribute to society more.
The circular the Department of Finance has introduced is also known as the Local Finance Circular (LFC) 001-2019. It gives emphasis to professionals who still need to get their business permits from the Local Government Units. They can obtain those permits without paying any fee(s). DoF is hoping that through this circular, professionals like you can focus on pursuing your passion and making an impact on society.
Getting Rid of Obstacles
The circular recognizes the regulations that govern the practice of professionals fall within the specialized agencies and the regulatory boards. So, as a professional, you can now focus on the pursuit of your dreams without the financial burdens that could hinder your growth and progress. Through this initiative, the government wants to show you that they are committed and supportive of the unique nature of your practice. They are taking a step forward in strengthening your ability in your chosen field.
Tax Considerations
The circular exempts you from paying business permit fees but they also made sure to address the issue of taxation. The issue of taxation is for professionals who are engaged in business activities that are not related to their profession.
Tax services in Manila emphasize that it is crucial to know the difference between professional activities and business activities to make sure that a fair tax system still exists. The government wants to show you that they are dedicated to making a fair and just environment for professionals. It will benefit you and the country’s economy as well.
Taxation for Professionals
Know that the circular exempts you from paying business permit fees but that does not mean you do not have tax obligations anymore. Whether you are a professional from the private or public sector. You are obligated to pay professional tax. You are only exempted if and only if you are an employee of the government and if you do not have the authority to practice your profession outside your official function or job.
You should pay your professional tax before you are employed and starting from there, you will have to pay annually. If you practice multiple professions, you should pay for each profession that you practice. If you are a lawyer who also works as an accountant, you will have to pay two different professional taxes for each profession. It would be prudent to use bookkeeping services in the Philippines to ensure all your records are precise and correct to prevent errors in taxation.
The circular makes sure that the guidelines for professional taxation are fair. Take note that the professional tax must not exceed P300 or exceed the specified rate in the local ordinance. It could also be subjected to an adjustment that does not exceed 10% every five years. These guidelines and policies make sure that no excessive taxation happens.
Community Tax, Exemptions, and Other Charges
Professional partnerships are the only ones exempted from paying community tax. Professionals and corporations still need to pay. The community tax that professionals, corporations, and individuals need to pay is P5.00 but for every P1,000.00 income, P1.00 is added. The community tax is capped at P5,000.00.
Professionals like you are exempted from many fees but fees for garbage, occupancy permit, and many more could still be collected from you. The LGUs who will be collecting that from you should not base their charges on your capital investment or gross sales to ensure a just and fair approach.
Concerns and Streamlining Taxation
This circular shows the DoF is committed to addressing the issue of LGUs imposing local taxes and other charges improperly. Streamlining taxation shows the circular’s desire to empower professionals like you to keep pursuing your dreams. Now, take charge of your financial success! Contact our accounting services in Pasig today and let us navigate the complexities of taxation for you. As a team, we’ll turn your dreams into reality!
