DILG: Medical, dental clinics don’t need mayor’s, business permits

By: - Reporter / @JeromeAningINQ
/ 09:40 AM December 12, 2016
Ismael Mike Sueno

Interior and Local Government Secretary Ismael “Mike” Sueno. KING RODRIGUEZ/PPD

MANILA — With the onset of the application and renewal period for next year’s business licenses, the Department of the Interior and Local Governments is reminding local officials that medical and dental clinics are exempted from the requirement of securing a mayor’s permit or business permit.

In a memorandum circular, DILG Secretary Ismael Sueno has advised all local government units (LGUs) that medical and dental practitioners are exempted from being subjected to any other national or local tax, license or fee, including the 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.


The interior secretary, however, said that that only those clinics used for medical or dental check-ups and treatment have been exempted under law.

He said clinics with shops for the purpose of generating income and and which have been selling products should secure mayor’s or business permits. Such products include medicines, in the case of medical clinics; eye glasses in the case of optometric clinics; toothpaste, toothbrush or other products in the case of dental clinics.


The exemption of medical and dental clinics from the mayor’s or business permit has been provided under Section 139 (b) of Republic Act No. 7160 or the Local Government Code of 1991.

The provision states: “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 fee for the practice of such profession.”

According to Sueno, the finance department’s Bureau of Local Government Finance also earlier issued an opinion stating that medical clinics, as a direct consequence of the practice of such professions, may not be imposed with a graduated tax on the premise that they are business establishments offering to render professional services.

Sueno ordered governors, mayors and the DILG regional directors nationwide to disseminate his memo in their areas of jurisdiction. SFM/rga

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TAGS: business permit, dental clinics, Department of Interior and Local governments, Ismael Sueno, Local Government Code of 1991, Local Government Units, mayor's permit, Medical Clinics, Republic Act No. 7160
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