Due to insisted public demand, I will be speeding up my post in this series. I am overwhelmed by emails and private messages. So, hang on colleagues!
If you are a moonlighter or starting a private practice, it only means, you have step-out of your shelter (medical school and training), you could be a fresh board passer physician or you could be a freshly graduated resident starting to do what you have been taught for more than 10 years of studying.
You are now wondering, why on earth TAXATION is not included in all those years of studying??? Well, my dear colleagues, we have to accept the fact that we may be a wiz in the medical field but dumb in taxation or financial literacy. Well, this site is dedicated to do the financial literacy lectures for you, so its time to be FINANCIALLY FIT.
Before going into details, it is important to know that, last October 2013, under BIR regulation 14-2013, a 15% tax was slapped on professional fees of a medical practitioner if these exceed P720, 000 a year. If the income is lower, at 10% percent tax will be deducted. Instructions were given to hospitals, clinics, HMO’s and Philhealth. So, that is that, all income coming from the above, has already taxed deductions.
Because of this rule, patients who are admitted to a hospital will no longer be allowed to pay doctors directly. The professional fees will instead be included in the total medical bills of patients.
What you need to do?
In you are a SELF-EMPLOYED PHYSICIAN (moonlighters, starting private practice), first and foremost, what you need to do is register yourself as a physician in the BIR in the RDO nearest your residence. In case you still do not know how, click here for the Part 1 of this series.
Now that you have the RECEIPTS, what to do with it?
STARTING PRIVATE PRACTICE
1. If you have a private practice, you are considered self-employed, hence, all patients that you will see on daily consultations, you will need to issue receipts. Better to instruct your secretary to do that for you while the patient is paying. It would be more professional and does not impede your consultations.
2. In case of Philhealth Earnings and HMO, these are usually considered as reimbursements and Philhealth usually already deducted 10% – 15% withholding tax depending on the gross income as stated in the circular, before giving the money to you. You can issue them receipts if you haven’t issued receipts to patients with the same services rendered.
MOONLIGHTERS
1. If a hospital/clinic is NOT declaring you as a Physician or consultant, and you are just earning an HONORARIUM and they are not TAXING you. You don’t need to issue receipts. Since your services might just be temporary. But be sure THEY ARE NOT really declaring you. You might need to ask this to the HR (Human Resource) of the hospital or clinic where you are working at.
2. If they are deducting tax to the salary they are giving you, then it only means you are being declared as their independent consultant or physician in that institution/hospital (self-employed). This time, you need to issue RECEIPT to that institution and declare them in your ITR. You can also ask them for the BIR FORM 2307. They should have one with your name on it. As proof that the tax they are deducting you really goes to where it should be. Giving receipts here does not really mean added tax, since they have already deducted tax from you, it is just added paper works.
MIXED INCOME (meaning you are employed at an institution at the same time hold a private practice or do moonlights)
1. If you have MIXED INCOME, you still need to register yourself as a physician in BIR and issue receipts in your private practice, but no need to issue receipts to the institution where you are considered EMPLOYED. What you still need to do is this: before every APRIL 15 of the year, you need to consolidate both of your earnings in the filing of your annual Income Tax Return (ITR). You may pay an additional tax if in case both earnings when added together made you belong to a higher bracket of income earners (well it depends).
* Important to note: It is okay to give receipts to Philhealth, and HMOs if in case you have not yet given out receipts to the patients directly. Double taxation happens only if, you have already given receipts to patients, then you will issue receipts again receipts to the same services rendered to Philhealth and HMO.
IF YOU ARE EMPLOYED (GOVERNMENT/AS PRIVATE RESIDENT OR FELLOW)
- No need to register yourself in the BIR, no need to file ITR, no need to do all those things above because you are considered employed and your employer (hospital/government/clinic) are the ones who do all the taxation part for you since they automatically deduct it in your salary. As stated in my previous post.
What will happen if you don’t issue receipts?
Under Section 264 of the National Internal Revenue Code, a fine of not less than P1,000 but not more than P50,000 and imprisonment of two to four years are imposed on those who do not issue official receipts.
Sadly,once convicted, doctors may even face revocation of license upon the recommendation of the Professional Regulatory Commission. So, better to do be informed and do what we need to do.
If you have any other questions, feel free to comment below so that other physicians can see and learn. You can also contact me here.
Update on the TRAIN Law 2018:
Further Readings:
- Part 1: The Ultimate Guide on How to Register as a Doctor/Physician in BIR
- Part 2: How to Issue Receipts: Guidelines for Moonlighters/Starting Private Practice
- Part 3: How to file INCOME TAX RETURN as a Physician
- Part 4: Penalties for late filing of Income Tax Return
- 6 Secrets of Becoming the RICH Doctor Your Friends and Family Think You Are
- Part 5: How to Compute your Income Tax Return
- A Simple Trick for Doctors to Know Whether Their Accountant is Honest
- 8 Facts Doctors Need to Know About the TRAIN and How it will Impact your Income Tax
Credits to: BIR and my personal accountant Ms.Gina Pascual.
Disclaimer: Though this article was based on reliable resources and comprehensive research, this article was provided for educational and informational purposes only, and doesn’t constitute formal professional advice. New laws, rules, issuance, and regulations may render this article obsolete or inaccurate in whole or in part. For more clarifications, please visit and inquire personally with your RDO.
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Hi doc pinky. Thank you for this very useful steps. =) God bless and more power!
Thank you Muyee! Glad to be of help.
Hi Pinky,
I am currently a fellow at a private hospital.When i was still a resident in the same hospital, they are the ones filing every year, they callled it substituted filing? And i only recieve a Form 2316 from them for 5 years. Now that i am a fellow, they told me that we should be the one filing our taxes quarterly but but most of the other fellows like us file yearly daw & its ok with BIR. We are not allowed to hold private practice, so i guess professionals earning purely compensation income right?. Now everytime i request for my payslip i see that they deduct 15%. My salary is 18,000( 16,500 classified as commission and professional fees plus 1,500 employee benefit). They get 2,475 from me, i guess that’s 15% of the 16,500 because the 1500 is non-taxable right? So i think it should be 10% only. And they do not pay/ deduct philhealth/SSS, but these are tax exemptions right?
So if they regard me as a private physician, why 15%? Then i told them that i will be updating my status(have a child born last year), they told me to file it myself at my RDO (fine with me). I said ok, i’ll just give you guys a copy of the submitted form so you could deduct less. They told me they don’t need it. What? So they still are going to deduct 15% every month. They said that i should just tell BIR when i file my income tax return, comments about this pls.
Thank you
PLM-CM batch 2006
Hi Doc Marco,
According to my accountant, there might be something wrong with the hospital, because they should be issuing 2307 not 2316. especially if they are not paying for the philhealth/SSS.
With regards with 15% deductions, she told me that there are several institution that deduct automatically 15% at the start of the year, and on your part you should declare “Affidavit of Income which is every June” in BIR stating that your income is less than 720,000 so that the deductions will be 10% instead of 15%. With regards to your child, you need to update the BIR regarding that to avail of the tax exemptions, that would be for the filing of the ITR. But you need to ask the hospital if you are really considered employed (form 2316) or self-employed (2307).
Good day and Kudos to your blog. It will be a big help to our medical community. May I ask you to enlighten us on gross income, net income from HMO’s and Philhealth, what amount should be written on the receipts and which of these should we correctly declare in our monthly payments. Thank you very much!
Hi doc Miguel, you need to write the total amount you actually received, meaning the net income. 🙂
thank you dra pinky for the enlightening info…just want to ask your advise..I am a doctore categorized as mixed income-emplyed and private practic..the hospital as you said automatically deducts withholding tax..however my private practic does not reach 720,000/annum and yet the hospital deducts 15% I have to issue everytime a receipt to them whenever I have a check and my colleagues says a have to pay additional 3% to the BIR..Is this not too much to think mahina na private practice and I have yet to pay a retainer’s to my accountant on a monthly basis!
have you asked them why they deduct 15%?
sadly, they are right for the 3% additional, it is called: Percentage Tax (PT) or NON-VAT it is 3% if gross professional fees total P 1,950,000.00 and below for a 12-month period.
Hi. I would just like to ask. Do I still need to give a receipt to Philhealth since any PF I receive goes directly to billing as part of the total medical bill. I am an anesthesiologist. The hospital automatically deducts the withholding tax. Thanks
Yes especially if you have not issued receipts to the patients for the same services rendered.
When we give receipts to the hospital or hmo for the amount which we receive. We need to place it in the columnar right? So do we need to add it for the monthly income? But tax was already withheld.
Yes you need to.
Dr Pinky, thank you for this very informative site on taxation, it truly is a big help. I would just like to ask why a receipt should be given to HMO’s when tax is already deducted from the professional fees before it is received by the doctor and 2307 form, proving said tax deduction/payment, is issued by the HMOs? I have received letters from different HMOs requesting for an official receipt for my out-patient and in-patient cases, after they have sent the payments with accompanying 2307 forms. Should I give them receipts? Won’t this be considered an additional tax from the 10% to 15% tax already withheld from my professional fee when I declare these receipts in my ITR?
hi dra, yes you may issue them receipts. Double taxation will happen only if you issued receipts directly to your patients and again to the HMOs. The 2307 is the certificate that a tax was already deducted. You will need those (2307) in filling your ITR, since here, everything will be consolidated as well as all the taxes that was already deducted.
Wow! Thank you so much! I wish we had lectures like this back in med school. Long live Pinoy MDs!
Hi. I just want to ask how to issue a receipt to an HMO. I am an independent contractor for an hmo for which I am issued a form2307 but I’m not sure when and how to issue a receipt to the hmo and how to register at the BIR for receipts. Thank you!
Hi dra, please refer to my previous post: http://www.myfinancemd.com/filipino-doctors-and-taxation-part-1-the-ultimate-guide-on-how-to-register-as-a-doctorphysician-in-bir/
Tell me if you have further questions after reading this. thanks.
Hello! Good thing I saw your blog. I belong to the mixed income group (as a specialist in a government Hosp for which I am compensated a certain monthly income and private practice in a clinic that I am renting) Question is if I have not registered as a private practitioner to BIR, and come Apr 15, what should I do with my form 2307s fr HMO opd consults? Which aren’t too many btw. And can I do this retrospectively? I mean, started my clinic may 2013. Or should I just file ITR as employed instead of mixed income and then do the registration as phycisian after filing the ITR? Thanks so much.
Hi doc, If you do not register as a physician, you don’t need to file ITR since if you are employed in the government (if you are receiving form 2316 from them) and they do filling for their employees, but make sure you are employed. Ideally, you SHOULD register as a physician before the filling of ITR, to avoid any problems in the future, especially now that doctors are in the limelight. And if you might be unlucky and you’ll be audited in the future, they will usually audit 3 years back. So, even if nakalusot ka this year. If you will be audited in the year 2016, this will still traced back, that you did not register as you should have. And surcharges are usually applied if ever. So, it is really up to you. 🙂
Hi! Dra, ask ko lang po paano Kung mayron pong business under ur name paano po ang filling ng tax nun.
you need to file it as individual paying or self-employed.
Hi! Dra, ask ko lang po paano Kung mayron pong business under ur name at currently employed ka po paano po ang filling ng tax nun. Nid po b mag register din? Thank u po
yes po you need to register and file itr under mixed income.
I would like to ask po Kung paano po magfile ng itr Kung for example may business ka po then nasa HMO ka po. Thank you. Please help
Hi DRA, I sent you a pm in your email.
Hi Doc. I am a hospitalist in a tertiary hospital, and just registered in the BIR this january as a requirement. I am also employed as a professor in a university. Is this considered Mixed income and need to include in my declaration of income to BIR my salary in the uinversity, eventhough they already deducted the necessary taxes. Thank you.
Hi doc, yes that is considered mixed income. You still need to file both income in ITR form 1701. There is a possibility that you will need to pay additional tax since both income when consolidated together will give you higher bracket.
Hi doc. I am currently working as an HMO physician. They are taxing me 10% from my income. And issung me 2307. Will I pay other taxes pa? SAbi ng iba me 3% pang babayaran. Ano yun forms na babayaran. Where will I pay. Thanx!
hi, yes doc, that is what you call, PERCENTAGE TAX, which is 3% more. use the BIR Form 2551 M if you are paying monthly, if you are paying it Quarterly, use BIR form 2551Q. Pay in your RDO or Authorized Agent Bank (AAB) of the Revenue District Office you are registered.
hello again doc, thanx sa info. I have many questions.
1. Bukod sa 10% withholding tax, 3% percentage tax, me iba pa bang tax na dapat bayaran. I just know this only. I thought yun withholding tax lang ang dapat bayaran. I just pass my previous ITR to the malls with attached 2307.
2. Ano ang dapat i-attach sa pagsubmit ng 1701. Purely, my income comes from one HMO only. Per hour/rate sya and no benefits.
3. San RDO ako sakaling pupunta. SA place of work ko?.Di ba ako masisingil ng previous billings na di binayaran. Please help me.
Hi doc, have you seen the part 1 of my post. It describes the procedure pano mag register as MD. Have you registered na ba? If yes, kung saan lang RDO nkaregister dun ka din Pay
hello again doc, Gud AM! I am not issuing any receipts of my own. So the HMO company that I worked for takes care of it. Even the prescription pad I issued is by the company. So do I have to pay for the 3% percentage tax? Is the form that I have to fill up is 1701. I work straight for the company. Thanks again. Sorry for the bothersome question.
Yes but you said they are issuing you form 2307, it means they don’t consider you as their employee. Kaya you are considered self-employed. Kaya you still need to file itr 1701 and pay percentage tax.
Hi dra. Thank you for this very useful info. too bad we don’t have taxation lecs in med school. I do have some questions
1. I just passed the boards last august 2013. started moonlighting last October 2013.. do i need to file na po this april 15 2014? is it true that there is some form of tax exemption for the first year?
2. In my first moonlighting stint, the hospital asked for my TIN. They issued me form 1901. So I got that TIN from the hospitals RDO. so from then on, I used that TIN in transacting with 2 other hospitals, no receipts and I was not aware that I have to ask if they are using form 2316 o 2307.
I’ve read that you have to register as a physician during the start of the year. Ask ko lang po, does the BIR issue fines for late registration? like if i register now? Thanks
Hi doc,
you will have the same TIN number forever. so if you have already one, that will be your TIN you will be using for the rest of your life. About tax exemption, well, when you are already working, they are already withholding tax from you, so im afraid, there is no such thing. You still need to register as physician before filing the ITR, since it is the first step. I think there is no fine if you register late, but if you did not file your ITR, there is always a fine, and surcharges especially if they find out.
Hi dra! If you could please help us out to understand what we need to do…we are residents in training at a private hospital, however, we are not considered employees and are said to be given stipend only. Hence we don’t have benefits and the monthly compensation we get does not have any deductions for philhealth/sss etc. Every month, we receive our form 2307 indicating our base salary and the automatic 10% deduction done by the hospital…do we need to file these form 2307 to BIR? And do we need to pay additional taxes upon filing? Thank u so much!
Hi DRA, yes. Since they don’t consider you as their employee, you need to fie on your own. If they are giving you form 2307, you are considered as self-employed. You need to file form 1701 and probably you might need to pay additional when you file your itr. Depending on the final computation in the form 1701.
Hi dra,
Thank you for sharing your thoughts regarding BIR policies. As a house physician, with regards to issuing of receipts upon receiving 2307 from the hospital, what amount should we write on the receipt? Is it the total or total minus the tax withheld?
the net income dra. 🙂
Hi Dra… I have a question on which tax will I pay? I work abroad as physician and come home every other month. When I am in the Philippines, I work for an HMO and also on my clinic. Question:
1. Should I still pay and file for income tax her in the Philippines for my earnings abroad?
2. Should I include my earnings abroad to my consolidated mixed income?
hi doc, sorry for super late reply. been very busy, for your questions, the earnings you get from abroad, need not to be filed in the ITR here.. only the once you earn here in the Phil. but, since you work in 2 employer HMO and clinic, you need to file the mixed income category.
dra good afternoon.
thank you in advance for your reply.
i just passed the boards last Feb 2014.
i started moonlighting last May here in valencia city bukidnon.
the hospital where i moonlight are deducting 10% tax gving 2307 form which means im self employed. now they are also asking for a receipt.
my questions are
1. once im registered as a physician here in valencia bukidnon when i go back to manila do i still need to register there again?
2. once i have that receipt from BIR here in valencia bukidnon, can i use that receipt when i go back to manila since i will be staying here only til August 15.
or once i have that receipt i can use it anywhere i do moonlight?
3. by next year with the forms 2307 i have, do i need to come back here to apply for ITR?
thank you once again for all your replies.
hi doc andy, here are my replies:
1. once im registered as a physician here in valencia bukidnon when i go back to manila do i still need to register there again? No, as long as you are coming back and doing all sorts of stuff in bukidnon.
2. once i have that receipt from BIR here in valencia bukidnon, can i use that receipt when i go back to manila since i will be staying here only til August 15. :
or once i have that receipt i can use it anywhere i do moonlight? yes, you can use your receipts in manila. as long as it is not a personal clinic or clinic of your own. You can use 1 receipt for all your physician works.
3. by next year with the forms 2307 i have, do i need to come back here to apply for ITR? Yes, you will file your ITR where ever you were registered. if you want to practice in manila permanently, you need to transfer your registration where you will be practicing more permanently.
hope that answers your quiries.
hi gudday doc pinky
thank you for ur blog site which is very informative i just have a few question with regard to my practice since i admit im tax illiterate
i work as a company physician at a mining company at palawan..however i live at san pedro laguna..i get to stay in the place at the mining company for almost a year and get only vacation leaves of 12 days a year however im registered at laguna bir branch..do i need to transfer my bir to puerto princesa in order for the admin to process my taxes?
next im employed at the company as a company physician with gross income of 50k a month..i am deducted about 32% as per bir tax table which i know nothing about however when computed from my gross i reciv about 40k a month which is about 20% tax..?
next i get to see private patients aside from the usual employees i see at the clinic wherein i get to charge my professional fees..we get a sharing with the hospital of 80% and 20% then from my 80% there is a deduction of 10%..with all these deductions in my salary and my position as being a company physician at the company is it safe to assume that the company process my needed files at the BIR and i dont need to make any appearances at BIR to file anything?
i heard from my co-doctor that i still need to pay 3% of my pf to bir monthly aside from the 10% tax witheld from my salary..?and if yes i am registered at laguna is it ok to pay the tax yearly?cause i wont be able to go to laguna monthly as i am a stay in at the company..or would i need to transfer my bir to puerto princesa palawan?if so do i need to have a other receipt issued or can i use the one i got from bir laguna?
thanks alot doc pinky in advance if youll help me with my situation..it will be of great help since we are 9 doctors here which are all tax illiterate..this will greatly help doc and more power to your blog!=)
I hoped I answered your quiry when I called.:)
hi dra! thanks for this blog! dra, currently i am registered in 2 RDOs, i have clinics in 2 different municipalities so i registered a “branch” of my practice. so i have 2 sets of receipts as well, since that is what the BIR wants. However, i am going to open a new clinic again which is in Pasig (same RDO) of my present one.. my question is,
1. can i use the same receipt from the same RDO (which is in Pasig)?
and i read that a doctor can be fined if we dont display a copy of Cert of Registration aand “NOTICE TO PUBLIC AS FOR RECEIPT”, My current cor and notice to thepublic are being displayed in my present clinic now,
2. wont i get fined if i have nothing to display at my second clinic in Pasig also since its the same RDO?
THANKS AND GOD BLESS!
hi dra, i sent a PM to your email. Kindly read my reply. Thanks
Dra. I sent pm to your email.
Good day doc! I am currently a moonlighter but previously employed at a govt hospital where i took my residency. I understand that while i was employed the hospital took care of my tax. I continue to file my tax after my residency however i was not able to register as self employed and i use form 1701 to file my ITR. My question is, do i still need to change my status to self employed?
And another problem, before my residency, i was employed at a hospital in the province as GP and was issued a TIN after i applied for it at bir. However when i started my residency in manila, i was given another tin. The hospital where i had my reidency took care of it and i was not aware that i have a second tin. When it was time to file for ITR, i was using the old tin. The first year after residency, i sought the help of an accountant coz i dont know anything about filing my ITR. Giving him my old tin, he advised me to file my itr in the province because my tin was registred there, so i did it. However this year when i was about to file my ITR in the province, i was told that my tin number was no longer active. I called the bir hotline and was told what happened and i was told of my new tin. So i filed my ITR with my correct tin at the correct rdo where my new tin was registered but as self employed. I know this is a mess but What do i have to do with this situation? I hope you can help me regarding this matter. Thank you so much in advance!
hi dra, i sent a PM to your email.
Hi, doc Pinky! Thank you so much for your blog!
1. I understand that we issue receipts to philhealth which is subject to 3% percentage tax (of the net income, right? ). Since philhealth payments are usually late, is it okay if there is a discrepancy between the quarters the income tax was withheld (by philhealth) and the time that we file the percentage tax?
2. This year, Philhealth converted all medical and surgical cases as case rate payments. In their 2012 memorandum, it is the institution/ facility that should issue receipt for both the facility fee and the professional fees. Should i still issue an official receipt then?
2b. Do I address it to philhealth or to the institution?
2c. The amount of which is net of the withholding tax?
I am confused because the accounting office of our institution said that they are the ones filing/paying for our percentage tax. She also said that our form 2307 is filed by the institution and that we, doctors do not need to include it when we file our own income tax.
Thank you so much in advance….
hi dra! i recently passed the board exams and is currently moonlighting at an industrial clinic with no contract. i applied for a TIN as self employed, and when i got my COR, it was stated that i should accomplish authority to print receipts and books of accounts within 30 days. My questions are:
1. Is it really necessary for me to have receipts although i’m just moonlighting?
2. What’s the difference with those who are moonlighting but are just using the TIN that is for government purposes only? will the BIR detect that they are earning but are not filing taxes unlike others who got the TIN for self employed?
3. If i get into residency next year, do i need to cancel my registration as self employed if i get employed so that I will not have to bother filing taxes on my own?
Thank you very much and I am looking forward to your response.
1. yes, you need to register as physician and do the authority to print receipts since it is the right way to do it.
2. those who are just using the TIN is not actually filling the ITR as collated. Yes, if you are the lucky one that the BIR pointed to and wants to investigate your earnings. you will be required to submit all the necessary papers. through your TIN, they can see if you have not filled everything in your ITR.
3. if you get into residency and if they regarded you as employed and not as self-employed physician, yes, you need to cancel first the self-employed to avoid further problem in the future. but you really have to ask the hospital if they will really employ you. As most physicians although residents, they are being treated as self-employed. i hope to answer your question.
Good day doctor,
I would like to ask for help regarding my situation. I am a fresh board passer and is now planning to enter residency training. I successfully applied for a TIN online (as per a friend’s advice) only to find out that online applications are only for self employed category only and not for those who are to be employed by a hospital as a resident. What should I do? I already have a TIN but i cannot give that to the hospital i am applying in since it is registered as ‘self employed’.
I humbly await your reply and thank you.
Hi dr john, you can still give your TIN to the hospital where you are employed. Since you will be using the Same TIN in your entire life. Even employed or not. They will process your BIR needs since you will be employed. Just make sure to them na employed talaga ang status mo. Since maraming residents na SELF-EMPLOYED yung status nila kahit resident sila. If you have any other concerns PM for personal concerns. Thanks for reading.
Thank you for your reply. I recently went to the RDO where I am located. And sabi nila sa akin is that i have to ask my employer (residency hospital) a certificate of employment to prove that i am already employed in their institution as a resident. Also I have to ask my employer to fill out the 1902 since 1901 yung binibigay sa online registration na finill up ko. Then i have to give that certificate and the new form back to the RDO. Ang complicated po pala. Thank you po for answering my query.
So clarify ko lang po. Ibig niyo po ba sabihin kahit ibigay ko lang yung TIN 1902 sa hospital sila na po bahala mag ayos noon from self employed to employed status or do i still need to do it myself sa ‘BIR RDO and back’? Salamat po ulit.
hi,
it depends sa kanila if ikaw papalakarin or sila na rin. Basta make sure you are really employed. Not self employed. minsan kasi others think they are employed pero the status pala nila sa company is self employed. Ask them.
Hi Dra! I would just like to ask, before med school I worked at a callcenter so I have my TIN then and after went in medschool. I passed the Feb2014 boards and started moonlighting May2014 using my TIN prior, I haven’t updated my status as doctor now. I have the form 2307s too and will be asking for other forms needed when I worked as a company retainer physician since I plan to file my income tax this January. My question is should I update my status first as a physician? and file the itr later? and what addtl fees I’ll pay if ever. Thank you! I’m really having a hard time w/ taxes much more na sarisariling file na compared for ex being in residency. I decided to know abt taxes na since I think I’ll be moonlighting for sometime while reviewing for the usmle. Hope you can enlighten me more.
Hi dra. You need to update or register yourself as physician in BIR using your old TIN. Since only one TIN should be issued in one person during his or entire lifetime. If you have further questions, contact me in contact page. Thanks for reading my blog. 🙂
It’s that time of the year again when we need to file our taxes. Some of the questions posted here are also my questions, I hope we could also read your reply.
I work in TMC as retainer, I got accepted to work for HMO in a government agency. I also plan to be a hospitalist. My question:
1. Do I need to file in the BIR for another receipt if I work as HMO in another clinic? Also when I “moonlight” for a hospital?
2. Can I use my receipt in TMC in working with other HMOs?
2.
Hi doc Ghie, you are registered as a doctor right? Since you only do a physician work in all of those, you only need 1 receipt. No need to get another. You only need to get another is you have your own clinic and you want to open another clinic. Different receipts to Different clinic. One is main, the other is branch.
Good evening doc,
Thank you for taking time in answering all our questions:
I recently graduated from residency (tertiary hospital) this December 2014 and about to take the diplomate board examinations in April 2015.
Since January 2014, in our senior year, the hospital hired a third party accountant who filed all our COR and ITRs. The hospital deducted the necessary charges and tax (as professionals) from our salary. However, since the start of THIS year 2015, since we have already graduated but still not earning (just studying for the boards), are we supposed to pay anything to the BIR? A lot of us are still planning to train for fellowship abroad after the boards… The accountant said we should just pay him P500 EVERY MONTH from January 2015 up to the time we start practicing for him to file NO INCOME in the BIR. Is there no other way through this? We haven’t even started our practice and yet we are already at a negative…
Hi Reg, actually you still need to file the ITR. And declare no income. You still need to go through the process kasi if not, may fine. Wala na nga Income may fine pa. Part 3 of my post on taxes talks about fines. Anyway, other way to do that is, you file it on your own para you don’t need to pay 500 per month to the accountant. Which is para sa akin unnecessary. Pero dahil Busy kayo and you don’t know what to do, the accountant will charge you. Not knowing on your side na madali lang yun sana. If you could email me your name and contact number privately, I will try to help you with that. You can look at my contact me part. 🙂
Hi Reg, actually you still need to file the ITR. And declare no income. You still need to go through the process kasi if not, may fine. Wala na nga Income may fine pa. Part 3 of my post on taxes talks about fines. Anyway, other way to do that is, you file it on your own para you don’t need to pay 500 per month to the accountant. Which is para sa akin unnecessary. Pero dahil Busy kayo and you don’t know what to do, the accountant will charge you. Not knowing on your side na madali lang yun sana. If you could email me your name and contact number privately, I will try to help you with that. You can look at my contact me part. 🙂
Okay. So no income tapos may fine pa talaga. Thank you for the valuable info. And thank you for replying so quick!
Haha yes. That’s how it works with bir if you don’t know the process.
Good evening doc, your blog is really informative for us all physicians. I would just like to ask the ff:
1 I was hired as a retainer physiciann last Jan 2015 and registered at BIR as self-employed March 2015. Do I need to include Jan and Feb in my quarterly ITR?
2 Do I need to pay for the withholding tax, too? Or just the monthly percentage tax?
3 Do I really need to maintain books of accounts once registered as self-employed?
Thanks! Hope I get enlightened regarding this. Thanks again..
sorry for the super late reply. i have problems with my previous system in handling comments kaya, now ko lang nakita halos lahat ng comments. 1. yes Jan, feb, march (1 quarter) 2. you need to pay both. withholding tax, percentage tax and also annual itr. 3. yes, you need to maintain books of accounts. seek help from a friendly accountant.
Say, I have a clinic at Hospital A declared as my head office (i.e. 000 for the last three digits of the TIN). I also have two other clinics declared as branches (i.e. 001 and 002 respectively for the last three digits of the TIN).
My question is, if I have transactions outside of the said clinics, can I use the receipts there for such transactions? An easy example is being paid by a pharmaceutical to be a lecturer at a round table discussion. Technically, the transaction has nothing to do with the clinics but nonetheless I have to issue a receipt to the pharmaceutical company paying me. Is issuing a receipt from the head office the valid or correct procedure?
Yes it’s OK to use the receipt from the head office. You are registered as physician there and it is used as receipt for professional fee. 🙂
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Hi doc! Your blog is really informative. I would like to ask lang po since naguguluhan ako re taxation. I passed the boards po last August 2015 lang. Got my TIN (which I assume na 1902) last November and started taking reliever posts mga 2nd-3rd week of November. By 2016, I will be starting a company retainer position in 2 different HMOs. I would like to ask po what I should do kasi by 2017, I am planning to have my residency training na rin po naman. Do I really have to file po yung 1901 and get book of accounts and official receipt? Kasi sabi po nila, for private practice na daw yun which is hindi ko naman po gagawin since wala naman akong private clinic rin. Or can I get 2307 forms from the companies tapos file my ITR without getting official receipt from the BIR po? I just want to make sure na tama po gagawin ko because I dont want na magkaproblem pa ako later if magsstart na ko with my practice. Thank you so much! 😊
Hi Ann, you have to make sure that you are registered as employed para di ka na need mag file ng ITR on your own, if naka-self-employed ka, pwede mo ipabago yun telling you are employed and have that reverted back to self-employed kapag you are in private practice na. But, you also need to ask muna the hospital what are their rules on these, meron kasing iba na eventhough you are employed, they want for you a different BIR status. Ask your HR first.
Hi doc! Thank you sooooo much for the reply po! I think we are not considered po employee under both companies. Kasi what they told us is to get form 2307 from them nga po then file sa BIR. No problem naman po with me if ako personally ung magffile and not them. However, ang naguguluhan po ako is if I cant get the 2307 and file sa BIR even if 1902 po yung TIN ko and wala akong book of accounts and receipt. Or kelangan ko po ba talaga magregister using 1901 and get the book of accts etc para para iallow nila ako to file my ITR? I dont want to get book of accts and receipt po sana since wala naman talaga ako private clinic now and by 2017 I will be taking my residency training narin naman po. However, gusto ko pa rin po sana ifile naman properly yung income ko habang nakayear off po ako. What will happen po pala doc if like for example, nagdededuct na po ng 10-15% tax sa amin yung company, and hindi naman nafile yun sa BIR? Thank you so much doc for answering my questions po. Sobrang helpful lalo na for someone na nagsstart palang and wala po talaga idea like me.
Hi Ann, can you email me your concern, Para I can answer you directly? Email is: myfinancemd@gmail.com
Hello Doc. Do you file the current declaration of gross income only every June of each year? Last 2015, I filed before the end of June which covered my earnings from Jan-May 2015. My cummulative salary upto now has not exceeded 720K. When do I file the next one?
Yes, before june every year. so that they will deduct 10% instead of 15% to your withholding tax monthly. If you exceed that amount, you don’t need to file declaration of income.
Gud pm po doc, doc im a moonlighter panu po mag pay tax previiusly employed po ako a year ago
Hi Kram, are you registered before? What form did you use?
Hi dra pinky, i would also like to inquire about procedures for filing tax for this year. I graduated dec2013 from a govt hospital (with copy of last itr) but now into moonlighting for the last 2years in 1 hospital with no tax withheld po/hnorariums only. Plan ko po sana magupdate ng payments this year but im not fmiliar with the steps. Dun po sa part2 of income tax for physcian articles, parang nagstop napo ang instructions for moonlighters after stating na we dont need to issue Atps. Ano po kya next step? Thanks po
sige dra, will try to make another post on that. Kindly check the site once in a while. better yet, subscribe sa FB. 🙂
Will do po, thank u dra 😊
hi dra pinky. i’ve been doing moonlighting for the past 2 years. i registered as a ‘professional’ taxpayer and have been filing my itr and percentage tax return since then. right now, I am planning to go on residency training. shall i update my taxpayer type to ’employee’ or can i continue being ‘professional’ and just file my tax returns on my own? thank you.
hi Red, make sure muna that the hospital that you will be employed, is talagang employed ang status mo there. some residency programs kasi requires their doctors to be self employed. if sure ka na employee status ka, then you can have it changed.
I filed and paid my taxes using http://www.taxumo.com. No need to line up at the bank anymore. So easy
That’s great. I know Ginger, the owner of taxumo.
Greetings Dra. Pinky 🙂 Do you have an idea how much much it will cost me to transfer my tax registration from QC to Makati?
It’s very minimal if there is a cost. What will cost you more is the time you are going to spend going to and from the agencies. 🙂
Hi doc! Thank you po for the info, but I can’t seem to open this link http://www.myfinancemd.com/filipino-doctors-and-taxation-part-1-the-ultimate-guide-on-how-to-register-as-a-doctorphysician-in-bir/. I used to be able to do so, now it just says “An appropriate representation of the requested resource could not be found on this server. This error was generated by Mod_Security.” Hope it gets updated po! Thank you doctor!
Hi Steph, try using a different Internet provider or WiFi access. Some IP addresses are being blacklisted by WordPress.
Hi doc, I’ve read your posts and I wish I had seen this right after graduation. May I contact you through email or other means for some questions? Thank you so much po.
Yes sure Doc, you can contact me here: http://www.myfinancemd.com/contact-me/
Hi Doc! When giving OR, does it matter if you give one OR for the entire quarter, or should it be per payout? Thank you so much, doc!
It should be per pay out.
I like the helpful info you provide in your articles.
I’ll bookmark your blog and check again here frequently.
I am quite sure I will learn many new stuff right here!
Best of luck for the next!
Hello po! Would it be valid to declare our residential address as “registered address”? I’m still applying as a private consultant to hospitals/clinics and one of their requirements is BIR Form 2305/COR and I don’t really have a clinic address to use as a registered address. And if these ORs bearing our residential address can be issued na to my own patients when I get hired na by hospitals/clinics? Thank you very much!
Yes. You can use it.