PhilHealth Tax Withholding for Chief of Hospital Fees

Such reimbursements shall not be subject to the 10% expanded withholding tax.
PhilHealth Corporation, through its Regional Offices, will issue a Certificate of Income Payment not Subject to Withholding Tax (BIR Form No. 2304).
This certificate must be included in the Annual Information Return submitted to the Bureau of Internal Revenue (BIR).

Upon receipt and distribution of PhilHealth funds to their medical and non-medical personnel, the government hospitals are responsible for:
- Withholding tax on compensation in accordance with applicable rates.
- Issuance of Employer's Certificate of Compensation Payment/Tax Withheld (BIR Form No. 2316) to employees.
- Submission of the Annual Information Return to BIR.
The portion distributed shall be considered part of the employees’ compensation income for the taxable year.

PhilHealth issues BIR Form No. 2304 certifying non-subjectivity to withholding tax for the pooled reimbursements.
Accredited hospitals handle withholding taxes, certification, and reporting for personnel receiving distributions.

The 10% expanded withholding tax is bypassed at the PhilHealth payment level for professional fees paid to the Chief of Hospital.
Tax obligations transfer to hospitals for compensation withheld from distributed shares.
Ensures proper reporting and withholding tax compliance under Philippine tax laws while streamlining PhilHealth reimbursement processes.