Every year a lot of medical students passed the board exams. And being in the real world, like looking for a job or residency can be overwhelming. Plus the fact that most new board passers are not equipped with some real life scenarios, like taxation or facing BIR.
Because of that, I gather all the questions of a newly passed physician and let me answer them, one by one.
Here they are:
1 . What is the importance of registering your practice to BIR?
2. What is the first step in order to register as a physician?
3. What are the step-by-step procedures on how to register to BIR?
4. After processing the application, what are the documents that I will expect to be released by BIR?
5. Once registered, what else do I need to do?
6. “I’m a new board passer doing Moonlight duties. I have TIN but the clinic I worked with ask for my receipts. How can I get that? Do I need to register for BIR?
Before getting a receipt, a physician would need to register himself in BIR. The registration process would involve a lot of steps and in the end, the physician will be issued receipts he will be needing in his practice.
Question #1: What is the importance of registering your practice to BIR?
Registering your practice will professionalize your profession. Registration is also required in many transactions like setting up an office in a commercial building or address separate from your residence. The Local Government Unit (LGU) will require you the registration along with other permits and licenses.
Not only that, registering to BIR with not only legalize your private practice, but it is also required when you are practicing in different health institution or hospitals. This will explain the sources of your income, your financial status, and your creditworthiness when getting bank loans.
Question #2: What is the first step in order to register as a physician?
You need your Tax Identification Number (TIN). If you already have this before, especially if you already have work experience, then you can use the same TIN. If you lost it, don’t get another, it’s a crime to have more than one TIN.
Question #3: What are the step-by-step procedures on how to register to BIR?
STEP 1: KNOW YOUR RDO (Revenue District Office). It could be the RDO near your residence or location of your clinic.
STEP 2: Fill up the BIR Form 0605 (Payment Form).
Note: *Before paying the Php500, make sure a BIR officer has already checked the BIR forms and other documents you are about to submit.
STEP 3: Fill up BIR FORM 1901 with these attachments:
– Proof of payment from BIR FORM 0605;
– Birth Certificate or any documents showing name, address and birth date;
– Marriage Contract (if married);
– Payment of Professional Tax Receipt (PTR);
– PRC License;
– If the clinic is rented: Lease Contract; otherwise, Title or Proof of Residence;
– Certificate of Affiliation from the hospital (if applicable)
STEP 4: Attend the required taxpayer’s briefing at the RDO before the release of the BIR Certificate of Registration (COR or BIR form No. 2303) and the “Ask for a Receipt” Notice (ARN).
STEP 5: Apply for BIR Form 1906 – Authority to Print (ATP) your Invoices/Receipts. This will be processed within 3-5 working days.
STEP 6: Register books of accounts and have them stamped by RDO where you registered.
STEP 7: Once Authority to Print (ATP) is released, have your receipts printed with an accredited BIR Printer.
Question #4: After processing the application, what are the documents that I will expect to be released by BIR?
After processing of application of registration, expect the following documents from the BIR:
– Books of Accounts with BIR stamp
– Certificate of Registration (COR)
– Authority to Print (ATP)
– Official Receipts (Booklets with serial numbers- from BIR accredited printer)
– Registration Fee and OR (0605)
– Ask for Receipt Notice (ARN)
Question #5: Once registered, what else do I need to do?
Display your BIR Certificate of Registration (COR) and the “Ask for Receipt” sign in conspicuous display in your place of practice, if applicable.
Maintain your books of accounts.
Issue receipts or invoices for every payment received.
Question #6: “I’m a new board passer doing Moonlight duties. I have TIN but the clinic I worked with ask for my receipts. How can I get that? Do I need to register for BIR?
If they are asking receipts from you, it means you really need to register to BIR as a self-employed physician. But you should also be mindful of your future plans.
– If you will go into residency soon, will your status be under “employed category”? If so, you need to close your self-employed status in BIR to prevent penalties in the future.
– You also need to research on what type of taxpayer you will fall into in your chosen residency program. Some, if not most hospitals require their residents to be under “self-employed” rather than “employed.” If that’s the case, you don’t need to close your registration to BIR and you don’t need to change status even if you are in the residency program.
– If you will be doing Moonlights for a longer time, then, it’s a good start to register for BIR as early as you can.
There you go. Those are just some real life questions from real struggles of new physicians.
If you want to know more, I have written an entire book for that and much more. It will serve as your survival guide as a physician in a real world.
Click here if you want to know more about:
The Green Book for Doctors, Second Edition.
Congratulations in becoming a physician, never forget why you wanted to become a doctor in the first place.
See you around,
Read more:
- 5 Reasons Why You Need To Have Green Book For Doctors (Second Edition) Even If You Already Have The First Edition
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