Medical, Dental Clinics Exempted From Business And Mayor’s Permits In 2017, Says DILG Chief

The Department of Interior and Local Government (DILG) reminded local government units to exempt medical and dental clinics from the mayor’s permit and business permit requirements.

Interior Secretary Ismael Sueno issued the statement in anticipation of a surge in business permit renewals and applications at the start of 2017.

In a memorandum circular reiterating Section 139 (b) of the Local Government Code, Sueno advised all local governments that medical and dental practitioners are exempted from being subjected to any other national or local tax, license or fee, including mayor’s permit or business permit; provided that concerned medical professionals pay the corresponding professional tax to the province or city where they practice their profession.

“Medical clinics, as a direct consequence of the practice of such professions, cannot be imposed with a graduated tax on the premise that it is a business establishment offering to render professional service,” an opinion from the Bureau of Local Government Finance stated.

However, Sueno stressed that only those clinics used for the conduct of medical or dental check-ups are exempted.

Furthermore, those that have established shops for the purpose of generating income and are engaged in the sale of products may be required by LGUs to secure the mayor’s permit or business permit.

Such products include medicines, in the case of medical clinics; glasses in the case of optometry clinics; and toothpaste, toothbrush or other products in the case of dental clinics.

In addition, Sueno also directed all Governors, Mayors, the DILG Regional Director and ARMM Regional Director to ensure compliance by local officials to avoid sanctions.

Source: Manila Bulletin