BIR to hospitals: Remit taxes of medical practitioners

MANILA, Philippines - The Bureau of Internal Revenue (BIR) has ordered hospitals, clinics and other health establishments to take charge of remiting taxes of their medical practitioners as it has prohibited doctors to accept 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 tax bureau said in Revenue Regulation 14-2013.

“Hospitals, clinics, HMOs and similar establishments must ensure that correct taxes due on the professional fees of their medical practitioners have been withheld and timely remitted to the Bureau of Internal Revenue,” the agency said.

A 15-percent tax is slapped on the professional fees of a medical practitioner if these exceed P720,000 in a year, otherwise, a 10-percent tax should be in place.

The new measure came out amid the BIR’s aggressive campaign to broaden the tax base through tightening rules for self-employed professionals due to the high incidence of tax evasion.

Moreover, the tax bureau has an ongoing shame campaign and Run After Tax Evaders program, both believed to encourage more people to pay the correct taxes.