Hospitals ordered to withhold, remit taxes of doctors
MANILA, Philippines - The Bureau of Internal Revenue (BIR) is now requiring hospitals and clinics to withhold and remit taxes of doctors and other medical practitioners to the government.
In its Revenue Regulation No. 14-2013, the BIR said doctors and other medical practitioners are now prohibited from accepting direct payments from their patients.
"It shall be the duty and responsibility of the hospitals, clinics, HMOs (health maintenance organizations) and similar establishments to withhold and remit taxes due on the professional fees of their respective accredited medical practitioners, paid by patients who were admitted and confined to such hospitals and clinics," the BIR said.
The BIR said hospitals, clinics and HMOs should ensure that correct taxes due on the professional fees of medical practitioners have been withheld and remitted to the agency.
A 15% tax is imposed on professional fees of a medical practitioner if these exceed P720,000 in a year. Otherwise, a 10% tax should be in place.
"For this purpose, hospitals and clinics shall not allow their medical practitioners to receive payment of professional fees directly from patients who were admitted and confined to such hospital or clinic, and instead, must include the professional fees in the total medical bill of the patient which shall be payable directly to the hospital or clinic," the BIR said.
The regulation will take effect on October 1.