Republic of the Philippines

PAMAHALAANG LUNGSOD NG TACLOBAN

(City of Tacloban)

Frequently Asked Questions

What is a license?

A license is rather in the nature of a special privilege, of a permission or authority to

do what is within its terms. It is not in any way vested, permanent or absolute. 1

What is a Mayor’s Business Permit?

Mayor’s Business Permit, is issued for the purpose of regulating any business or
undertaking within the jurisdiction of the Local Government Unit, which is
essentially an exercise of the police power of the State within the contemplation of
the general welfare clause of the Local Government Code.2

Who is considered a professional?

Professionals refer to persons engaged in the exercise or practice of his
profession, such as but not limited to: lawyers; certified public
accountants; doctors of medicine; architects; civil, electrical, chemical,
mechanical, structural, industrial, mining, sanitary, metallurgical and
geodetic engineers; marine surveyors; doctors of veterinary science;
dentists; professional appraisers; connoisseurs of tobacco; actuaries;
interior decorators, designers, real estate service practitioners (RESP),
insurance agents and actuaries, and all other professions requiring
government licensure examinations regulated by the Professional
Regulations Commission, Supreme Court, etc.3

Is a professional who pays his/her tax, exempt from payment of business

permit fee in the operation of his/her clinic or office?
A Professional shall still be required to secure a business permit, at no
cost, from the concerned Local Government Unit during the registration
of office/clinic and renewal thereof, subject to a duly enacted local
ordinance.4

1
Gonzalo Sy Trading vs Central Bank, 70SCRA570
2
Acebedo Optical vs CA (G.R.No.100152, March 31, 2000)
3
Section 139, Local Government Code, Revenue Regulation 11-2018
4
Local Finance Circular No. 001-2019
 Is a professional who is not engaged in any business activity that does not
constitute a practice of a profession, exempt from payment of Local Business Tax?
A Professional is actually engaged in any business activity that does not
constitute the practice of profession, pursuant to applicable law/s
governing the practice of such profession, he/she shall be liable to pay
the annual Local Business Tax to the city or municipality concerned,
pursuant to the applicable rates provided under Sections 143 and 146 of
Republic Act No. 7160.5

Is the Local Government Unit can impose and collect local taxes, fees and
charges on professionals?
Local Government Unit’s may impose and collect other applicable fees
and charges (i.e., garbage fee, sanitary inspection fee, occupancy
permit fee, etc.), the amount of which shall be reasonably
commensurate to the cost of regulation or provision of service, as may
be provided under a duly enacted local ordinance; provided, however,
that no service charge shall be based on capital investments or gross
sales or receipts of the persons or business liable therefor.6

Does any person or entity authorize to conduct or engage in any business,

trades, or occupations without a mayor’s business permit?

It shall be unlawful for any person or entity to conduct or engage in any

of the business, trades or occupations enumerated herein for which a
permit it is required for the proper supervision and enforcement of
existing laws and ordinance governing the sanitation, security and
welfare of the public and the health of the employees engaged in the
business specified herein without first having obtained a permit
therefor from the City Mayor and the necessary fees paid to the City
Treasurer.7

5
Local Finance Circular No. 001-2019
6
Section 8, Local Finance Circular No.001-2019
7
Tacloban City Ordinance No.99-58