The Department of Finance has issued guidelines on the imposition of local business tax , fees, and charges on service contractors.
The DOF said the LFC will be effective September 24, 2022, which is 15 days after its filing with the Office of the National Administrative Register of the UP Law Center last September 9, 2022, as required by law. The DOF said the circular was issued pursuant to the Local Government Code of 1991 and its Implementing Rules and Regulations , which provides that all sales or transactions made by a service contractor in an LGU where there is no branch or sales office must be recorded in its principal office, and the LBT due thereon must be paid to the LGU where its principal office is located.
However, LGUs may impose occupation fees on outsourced personnel temporarily deployed and engaged in the practice of occupation not requiring government examination, including those in a WFH arrangement, it added.