Summary
RR No. 14-2013 amends provisions of RR No. 02-98, as last amended by RR No. 30-2003 and RR No. 17-2003, on withholding tax on professional fees of medical practitioners paid through hospitals, clinics and HMOs.
Key points
- Creditable withholding tax rates. Amounts collected for and paid to medical practitioners by hospitals and clinics, or paid directly by HMOs and similar establishments, bear 15% creditable withholding tax if the practitioner’s income payments for the current year exceed P 720,000.00. Otherwise the rate is 10%.
- Duties of hospitals, clinics and HMOs. They must withhold and remit the tax and ensure it is correct and timely. Hospitals and clinics may not let practitioners collect fees directly from admitted and confined patients. The fees must be included in the total medical bill payable to the hospital or clinic.
- Exception with sworn declaration. No withholding applies when there is proof that no professional fee was charged by the practitioner and paid by the patient. This is shown in a sworn declaration, in the form in Annex A, jointly executed by the practitioner and the patient or authorized representative. The hospital administrator must tell the RDO of any practitioner who fails to execute it within 10 days.
- Reports to the BIR. Every 15th day after each calendar quarter’s end, hospitals and clinics submit the names and addresses of practitioners whose fees were paid directly to the hospital or clinic, and those who charged no fee. They also submit a sworn statement by the president or managing partner listing all accredited practitioners.
Who is affected
- Hospitals and clinics
- HMOs and similar establishments
- Medical practitioners: doctors of medicine, doctors of veterinary science and dentists
Deadlines and effectivity
- Effective October 1, 2013
- Lists due every 15th day after the end of each calendar quarter
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.