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Enabling Assessment in Local Taxation

1. Dr. Cortez, a topnotch medical professional is the majority stockholder of DASMA Doctors Specialists owning 55% of all outstanding stocks, before starting the operation of the hospital in 2019, went to the City Hall of Dasmarinas to ask for business permit fees and licenses he thinks is necessary. The investments at its FMV as listed by his accountant follows:

Land - P 5,000,000

Building with all improvements (eul is 5 years) - 30,000,000

Equipments and other facilities (eul is 5 years) - 10,000,000

Inventory of initial stocks - 3,000,000

He also inquired on the possibility of opening a satellite clinic also for that year in another town, which is in Silang. Dr. Cortez paid all fees and business charges. The business went well and has a good share of blessings in the initial year of operation including the succeeding year despite pandemic. The receipts for two years are as follows:

2019 2020

Main Office Satellite Main Office Satellite

Receipts on Admission P 25,000,000 P 15,000,000 P 30,000,000 P 20,000,000

Receipts on Laboratories 5,000,000 2,000,000 7,500,000 3,000,000

Receipts on Pharmacy 2,000,000 1,000,000 3,000,000 2,500,000

Expenses/Charges 12,000,000 10,000,000 20,000,000 12,000,000

(excluding depn)

Notes: 1. Dr. Cortez earns for himself a Professional income of P 3,500,000

per year as a practicing geriatrician.

2. In 2020, the hospital sold a small portion of the business lot for

P 4,000,000 when the FMV is P 3,000,000. The lot has a FMV of

P 1,500,000 when this was used for the first time.

Required: Compute all the local taxes.

Format of Answers:

2019 2020 2021

Real Property Tax 1)___________ 2)__________ 3)__________

Local Business Tax 4) Dasma_____ 5)Dasma____ 6)Dasma____

7) Silang_____ 8)Silang_____ 9)Silang____

Community Tax 10) Hosp_____ 11) Hosp____ 12)Hosp____

13) Dr._______ 14)Dr._______ 15)Dr.______

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