RR No. 03-99: Amends Revenue Regulations No. 12-98 to streamline and make more efficient the collection of the creditable withholding tax on income payments from medical practitioners

Summary

RR No. 03-99 amends Revenue Regulations No. 12-98 to streamline the collection of creditable withholding tax on income payments from medical practitioners.

Key points

1. Hospital or clinic remits. The hospital or clinic must remit taxes withheld from professional fees paid directly to it by patients. It must also remit on fees paid by patients directly to medical practitioners, where the practitioner gives the 10% expanded withholding tax to the hospital’s or clinic’s Accounting Office.
2. List of practitioners. Hospitals and clinics submit the names and addresses of medical practitioners to the Collection Division of their Revenue Region every 15th day after each calendar quarter ends.
3. Computation and timely remittance. They are also responsible for accurately computing professional fees paid directly to them and for timely remitting the 10% expanded withholding taxes.
4. Remittance deadline. Collected tax goes to the Accredited Agent Banks of the BIR on or before the 10th day of the following month from January to November. For December, the deadline is January 25th.

Who is affected

• Hospitals and clinics
• Medical practitioners

Deadlines and effectivity

• Names and addresses list: every 15th day after each calendar quarter
• Remittance: on or before the 10th day of the following month, January to November
• Remittance for December: January 25th

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.