RMC No. 49-2011 dated October 3, 2011 Further Clarification on EWT on Philhealth Payments

►  This Circular prescribes that for medical cases and surgical procedures where the entire case rate amount is required to be paid directly to the facility, the application of the expanded withholding tax rate shall be on the entire case rate payment at the rate of 2%.

►  The hospitals/clinics of facilities, being the party in control of the fund, are obliged to withhold the 10% or 15% expanded withholding tax on payments to be made to doctors or medical practitioners for their professional fees.

*. PHIC is likewise under the obligation to comply with the 5% withholding VAT on government money payments under RR No. 16-2005. It is emphasized that for purposes of VAT exemption, Section 109 (G) of the Tax Code covers only medical, dental, hospital and veterinary services, except those rendered by professionals. Thus, PHIC should withhold the 5% VAT on money payments to professionals and other facilities, if any, who are not VAT exempt.

RMC No. 49-2011 dated October 3, 2011 Further Clarification on EWT on Philhealth Payments