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RMC No. 38-2011 dated September 1, 2011 EWT on Philhealth Payments


RMC No. 38-2011 dated September 1, 2011
EWT on Philhealth Payments
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This Circular was issued to clarify the responsibility of Philippine Health Insurance Corporation (Philhealth) to withhold EWT and the applicable expanded withholding tax (EWT) rates on the payments for its member's benefits to medical practitioners and hospitals/clinics.

Since the PHIC determines the members' medical benefits based on pre-approved amount on a per case basis, such that, it can determine the amount to be paid as professional fees and the amount for medical services (facility fee) which include medical procedures, room and board, and pharmacy, the applicable rates for each of the payment identified shall be used.

Payments made to medical practitioner shall be covered with the expanded withholding tax (EWT) rates prescribed under Section 2.57.2 (A) of RR No. 2-98 as amended, which is 10% or 15%, whichever is applicable, while for the facility fees paid to hospitals or clinic, the EWT rate shall be two percent (2%) pursuant to Section 2.57.2 (N) of the same RR.


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