If you are a professional in the Philippines, you need to pay taxes yearly so you can practice your profession without any hassles. Tax services in Manila emphasize that it is very important that you know the payment process and learn how to get a PTR or professional tax receipt. Are you a professional in the Philippines looking to simplify the process of obtaining your Professional Tax Receipt (PTR)? We’ve outlined the process of getting a valid PTR below.
What is PTR?
PTR or professional tax receipt is proof of your annual payment of professional tax. Section 139 of the Local Government Code 1 mandates all provincial governments to charge annual professional tax to individuals engaged in professional practice that requires government examination. If you are a professional under the PRC or Professional Regulations Commission’s authority, paying tax annually is a requirement for you.
The PTR number should be written in your deeds, prescriptions, receipts, books of account, reports, designs, surveys, and the such for it to serve as proof of your professional license. If you don’t have a PTR, you will not be permitted to practice your profession.
Who needs to get PTR?
Registered professionals under the PRC authority are required to get PTR. According to accounting services in the Philippines, this implies that you need to at least have a valid PRC ID to serve as proof that you passed the licensure exam provided by the commission. This also includes lawyers under the Integrated Bar of the Philippines.
However, if you are a licensed professional who works exclusively for the government or any government agency, you do not need to get PTR.
If it’s your first time to get a PTR, you need to have the following:
- PRC ID
- Authorization Letter or Special Power of Attorney (if you are letting someone else apply for you)
In case you do not have your PRC ID, make sure you get a certificate issued by PRC as proof of your license. This, however, depends on your LGU. It’s important that you check with them first and if they do not allow or accept it, you should apply for your PRC ID to be issued.
If you are not a first-timer, you must present a copy of your previous PTR for it to be renewed. That’s why keeping your records and staying on top of your bookkeeping is crucial.
How to Get a PTR
You can go to the Treasury Department of the City which has jurisdiction over the principal office of professionals to apply for a PTR. You will be paying for your PTR at the local government unit and remember that you are entitled to practice your profession in any area of the Philippines without being required to pay any other local or national license, tax, or fee for practicing such profession. To get the PTR do the following:
- Present the Requirements to the City’s Treasurer’s Office.
- Pay the tax due and they will issue you your PTR.
You can also secure the assistance of tax and accounting services in the Philippines to help process any documents for you.
Cost To Apply
The cost may vary however the Local Government Code mandated that the cost should not exceed PHP 300. You may be charged with penalties, interest, and surcharge on top of your basic tax if you do not pay your PTR every year. Be responsible for renewing your PTR annually to avoid such charges.
When to pay and its validity
You must pay at the beginning of the year on or before the 31st of January. It will cover the current year when it was paid. Make sure to pay your tax on or before January 31 to continue practicing your profession.
- When will the PTR expire?
The PTR expires on December 31 the year it was issued. Renew it as soon as possible because, without it, you cannot practice your profession.
- Do LGUs accept PTRs that were issued by other LGUs for renewal?
It is mandated that you pay for your PTR at the LGU where you are primarily practicing your profession. You do not need to worry about renewing your PTR in a different LGU for LGUs will accept PTRs that were issued by other LGUs.
- How many times do I need to pay for PTR if I practice more than one profession?
The payment is based on how many professions you practice. If you practice three professions at the same time, you will also need to pay for PTR three times.
- Is there a difference between PTR and occupational tax receipts?
Occupational tax receipts are for non-licensed professionals while PTRs are for licensed professionals.
Don’t let the complexities of obtaining a Professional Tax Receipt (PTR) hinder your professional practice. Contact our accounting services in Pasig today and let our trustworthy team members simplify the process for you. We’ll ensure that you meet all the requirements and receive your PTR promptly, allowing you to focus on what you do best – practicing your profession. Take control of your tax obligations and reach out to us now!