Every year, halos automatic na para sa maraming veterinary clinic owners ang proseso.
Renew ng permits.
Pila.
Assessment.
Bayad.
Kapag may nakalagay na Business Permit Fee, most of us simply pay it.
After all, may clinic tayo. Kumita tayo. So natural na isipin nating negosyo ito at kailangan bayaran lahat ng nasa assessment.
But what if there is an important distinction in the law that many veterinarians have overlooked?
What if the professional practice portion of a veterinary clinic is not supposed to be treated exactly like an ordinary commercial business?
This issue came to my attention through fellow veterinarian Dr. Darwin Bandoy, who pointed me toward an observation earlier raised by Atty. Lester Ople.
And when you actually read the applicable rules, there is something veterinary clinic owners should know.
Under Section 139(b) of the Local Government Code, a professional who has paid the corresponding professional tax may practice the profession anywhere in the Philippines without being subjected to another national or local tax, license, or fee for the practice of that profession.
Now here is the interesting part.
The Department of Finance later issued Local Finance Circular No. 001-2019, providing guidelines on the local taxes, fees, and charges imposed on professionals.
And its definition of a clinic expressly includes veterinary clinics.
So hindi ito simpleng:
“Doctor naman ang veterinarian, baka kasama rin tayo.”
No.
Veterinary clinics are actually mentioned.
The same circular provides that a professional who has paid the professional tax may be exempt from payment of the business permit fee for the operation of his or her clinic or office.
But here is the part we should understand carefully.
EXEMPT FROM THE BUSINESS PERMIT FEE DOES NOT NECESSARILY MEAN EXEMPT FROM SECURING A BUSINESS PERMIT
A professional may still be required to secure or renew a business permit, subject to a duly enacted local ordinance.
The important distinction is that, for the professional practice covered by the rule, the permit may be issued at no cost.
So hindi tama na sabihin:
“Veterinarian ako. Hindi ko kailangan ng business permit.”
That is not necessarily what the rule says.
The better question is:
“If this assessment is for my professional practice, bakit may business permit fee?”
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And this is not merely an old rule that nobody remembers.
A December 26, 2024 DILG advisory reiterated the prevailing guidelines under DOF Local Finance Circular No. 001-2019 and DOF-BLGF Memorandum Circular No. 01-2020 regarding local taxes, fees, and charges imposed on professionals.
But before anyone screenshots this article and marches into City Hall saying:
“Libre na raw lahat!”
Hindi rin.
THERE IS A VERY IMPORTANT EXCEPTION
If the veterinarian is also engaged in selling, trading, distributing articles of commerce, or conducting another business activity separate from the practice of the profession, that activity may still be subject to applicable local business taxes and business permit fees.
So halimbawa, kailangan nang tingnan separately kung ang establishment ay may significant retail operation, distribution business, grooming business, pet shop activity, or another commercial activity apart from veterinary professional services.
That distinction matters.
And exemption from the business permit fee does not mean exemption from every LGU charge.
There may still be legitimate regulatory or service-related charges such as sanitary inspection fees, garbage fees, occupancy-related fees, and other fees authorized by law or local ordinance.
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THIS IS NOT AN INVITATION TO STOP PAYING PERMITS
So this is not an invitation to stop paying permits.
It is an invitation to start reading our assessments.
Instead of automatically asking:
“Magkano lahat?”
Maybe veterinarians should also start asking:
“Ano po ang breakdown?”
- Professional tax?
Fine.
- Sanitary inspection?
Fine.
- Garbage fee?
If properly imposed, fine.
- Other regulatory requirements?
Comply.
But when you see Business Permit Fee or Local Business Tax, especially when the assessment involves the professional practice itself, there is nothing wrong with politely asking the BPLO or City Treasurer:
“May I know the legal basis and what particular activity this charge covers?”
Because compliance should not mean paying something without understanding what it is.
Veterinarians spend years complying with regulations.
- PRC requirements.
- BAI requirements.
- LGU requirements.
- BIR requirements.
- Sanitary permits.
- Occupancy requirements.
- Animal welfare regulations.
We are constantly reminded:
Ignorance of the law excuses no one.
Fair enough.
But that should work both ways.
If we are expected to know our obligations under the law, perhaps it is also time we learned the protections the same law gives us.
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Maybe some veterinary clinics have been properly assessed.
Maybe some have commercial activities that clearly make them taxable.
Maybe some operate under business structures that require closer legal and accounting review.
But perhaps there are also veterinarians who have been paying certain fees year after year simply because nobody ever asked what those fees were actually for.
BEFORE YOUR NEXT RENEWAL, DON’T IMMEDIATELY REFUSE TO PAY
Before your next renewal, don’t immediately refuse to pay.
Don’t argue with the cashier.
Don’t assume you are automatically exempt from everything.
Just do something much simpler.
Get your assessment. Read every line. Then ask.
Because sometimes, the most expensive words in business are:
“Ganito na kasi ang binabayaran namin every year.”
SOURCES
- Republic Act No. 7160, Local Government Code, Section 139
- Department of Finance Local Finance Circular No. 001-2019
- DOF-BLGF Memorandum Circular No. 01-2020
- DILG Advisory dated December 26, 2024
Special acknowledgment to Dr. Darwin Bandoy and Atty. Lester Ople for bringing attention to this issue affecting professional veterinary practice.
Dr. Geoff Carullo is a Fellow and the current President of the Philippine College of Canine Practitioners.
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