QuestionsQuestions (BIR REVENUE REGULATIONS NO. 3-99)
It is issued pursuant to Section 244, in relation to Section 57(B), of the National Internal Revenue Code (NIRC) of 1997, and it amends Section 2 of Revenue Regulations No. 12-98.
To streamline and make more efficient the collection of the creditable withholding tax on income payments to medical practitioners.
Professional fees paid to medical practitioners by hospitals and clinics (including amounts collected and paid by them) and professional fees paid directly to medical practitioners by patients admitted and confined in such hospitals or clinics.
The hospital or clinic is duty-bound and responsible for remitting the taxes withheld, including taxes withheld from (1) professional fees paid directly to hospitals/clinics by patients, and (2) professional fees paid by patients directly to medical practitioners when the 10% expanded withholding tax is to be given to the hospital/clinic accounting office.
When no professional fee has been charged by the medical practitioner and paid by the patient.
Hospitals and clinics must submit, every 15th day after the end of each calendar quarter, to the Collection Division of the Revenue Region where located, using Annex A, the names and addresses of medical practitioners classified under the enumerated categories.
(i) Medical practitioners whose professional fee was paid by patients directly to the hospital/clinic; (ii) those whose professional fee was paid to them directly by patients and the 10% withholding tax was given by the practitioner to the hospital/clinic accounting office; (iii) those paid directly by patients but whose practitioner did not give the 10% withholding tax to the accounting office; and (iv) those who did not charge any professional fee from their patients.
The rate imposed shall be five percent (5%), pursuant to the provisions of the cited Section 2.
On or before the 10th day of the following month from January to November, and on January 25th for the month of December.
To the accredited agent bank (AAB) of the Bureau of Internal Revenue.
It shall be subjected to penalties prescribed by the NIRC.
The names of medical practitioners must be included in the Alphabetical List of Income Recipients attached to the Annual Information Return (BIR Form 1604).
It also covers cases where patients pay the medical practitioners directly, particularly when the 10% expanded withholding tax is in turn given by the practitioner to the hospital/clinic accounting office.
It takes effect fifteen (15) days after publication in the official gazette or in a newspaper of general circulation.
All rules and regulations, or parts thereof, inconsistent with these regulations are amended or repealed accordingly.