guidelines and policies for the monitoring of...
TRANSCRIPT
GUIDELINES AND POLICIES
FOR THE MONITORING OF
SERVICE FEES OF
PROFESSIONALS
(BUREAU OF INTERNAL
REVENUE)
14 MAY 2014, 7:00 PM
ANNABEL’S RESTAURANT
TOMAS MORATO AVENUE
QUEZON CITY
AGENDA
• Call to Order
• Introduction of Participants
• Presentation Proper - Dr. Anthony Leachon
• Open Forum
• Next Steps
• Other Matters
• Adjournment
GOALS
• To review and discuss the guidelines and policies for the
monitoring of services of professional (Revenue
Regulation No. 4-2014)
• To put all medical organizations in one page and to
communicate to all stakeholders to enable us to comply
with the BIR and other regulatory agencies
• To create a Task Force to address ethical issues
confronting the medical profession leading to a culture of
leadership, cooperation and compliance.
BIR
D
OC
UM
EN
T
RR
N
O 04-2014
BIR
D
OC
UM
EN
T
RM
C N
O 32-2014
MEETING WITH BIR COMM. HENARES
2 MAY 2014
MEETING WITH COMM. HENARES
2 MAY 2014
• Affirmed support to the government in paying the right taxes
• Communicated the motion to intervene in the SC court TRO on the petition of the IBP
• Requested for extension for the submission of affidavits for MEMO on professional fees, pending the formal letter (granted as per RMC 32-2014)
• Establish a communication infrastructure to educate & inform medical colleagues to be able to address issues quickly
• PCP to come up with a late breaking session on BIR issues on Monday during the PCP Annual Convention
• Lastly, Filipino Physicians are responsible citizens – pro poor and pro country
PLENARY LECTURE WITH DEP. COMM.
ASPE DURING THE PCP 44TH
ANNUAL
CONVENTION AT SMX MOA
1. Documents needed
1. Scheduled a coordination meeting with medical
organizations on wed night 7PM at Annabel’s T. Morato.
2. Agenda:
1. To discuss FAQs
2. To roll out the BIR affidavit template for uniformity and
easy compliance.
2. Formal invite to Dep. Comm. Aspe ( & Comm. Henares) to
foster trust and real partnership
3. Cascade information to all doctors (after May 14 meeting)
to beat the may 31 deadline.
PLENARY LECTURE WITH DEP. COMM.
ASPE DURING THE PCP 44TH
ANNUAL
CONVENTION AT SMX MOA
BIR checklist
1. Request for a template from the BIR for the submission of rates of professional fees with official logo of BIR for MDs ( for compliance, uniformity and easy filing )
2. Release a checklist of the documents to be submitted (books , journals , ledgers )
3. Establish a website and communication infrastructure for PCP & other medical societies for posting of FAQs & other queries
4. Create a Taskforce with the PCP as lead society with the different presidents of med org as members.
1. Taskforce will meet on a regular basis to discuss current BIR issues, come with a diagnosis , management and proactive plan to be able to comply with regulatory bodies as responsible citizens aside from being competent MDs .
PLENARY LECTURE WITH DEP. COMM.
ASPE DURING THE PCP 44TH
ANNUAL
CONVENTION AT SMX MOA
BIR checklist
5. Partnership program with BIR top officials ( Comm.
Kim Henares Dep comm Nelson Aspe , and Atty.
Larry Barcelo , chief of staff of Commissioner ).
6. Create a balanced score card to monitor success of
execution in the spirit of transparency and open
communication
7. Communications received from BIR
SELF-EMPLOYED PROFESSIONALS
TO REGISTER THE FOLLOWING
BOOKS WITH THE BIR
1. Person with Physical Disability
(PWD) Book
2. Senior Citizen Book
3. Patient's Registry Book
4. Appointment Book
BIR Memo dated 21 March 2014
SELF-EMPLOYED PROFESSIONALS
TO REGISTER THE FOLLOWING
BOOKS WITH THE BIR
―The RR shall take effect after 15 days following publication in any newspaper of general circulation. It was published on 21 March 2014 in the Manila Bulletin.‖ – PwC
SECTION 3. Transitory Provision. — All existing and registered self-employed professionals at the time these Regulations became effective are required to submit the required affidavit and register its official appointment books within thirty (30) days from date of effectivity of these Regulations.
March 21, 2014 - 10
April 5 – 15 days after publication / effectivity of RR 25
May 5 – Effectivity per RR
May 31 – Extension given by BIR RMC
AFFID
AV
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&
MA
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AFFID
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FR
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B
IR
Answer :
I DO NOT RECALL HAVING SAID THAT “OFFICIAL RECEIPTS FOR PHIC PROFESSIONAL PAYMENT NOTICE ARE NO LONGER REQUIRED. THE RULE IS THAT FOR SALE OF SERVICES BY A PROFESSIONAL OR A SELF-EMPLOYED INDIVIDUAL, AN OFFICIAL RECEIPT (VAT OR NON-VAT, AS THE CASE MAY BE) SHALL BE ISSUED ONCE THE FEE IS RECEIVED, EITHER ACTUALLY OR OTHERWISE.
May I know if there is an official statement or a BIR regulation about this? I searched the BIR website (bir.gov.ph) and could not find this information.
THE BASIC LAW IS SECTION 237 OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED.
Question
Is the issuance of
official receipts for
PHIC professional
payment notice no
longer required ?
FAQ 1. OFFICIAL
RECEIPTS FOR
PHILHEALTH
PROFESSIONAL
PAYMENT
ANSWER:
EARLIER, I STATED THAT I WILL FORWARD THIS QUERY TO REVENUE DISTRICT OFFICER ERALEN DE ARO AT KALIBO, AKLAN FOR HER OFFICE TO KNOW THAT IT IS PHYSICALLY IMPOSSIBLE FOR YOU TO COMPLY.
NONETHELESS, HOWEVER, IF YOU HAVE AN AGENT HERE WHO CAN PERFORM THINGS WHICH YOU CAN DO AS IF YOU ARE PHYSICALLY PRESENT, THEN COMPLIANCE MAY BE MADE IN DUE TIME.
OR EVEN IN AUSTRALIA, THE AFFIDAVIT MAY BE SUBSCRIBED IN THE PHILIPPINE CONSULAR OFFICE.
Question
I am a PDS certified
dermatologist who is currently
on the last month of my
fellowship training in Australia.
Before I left our country in April
of 2013, I had my private
practice in Aklan but since that
time period, I haven't seen nor
billed any patient in
performance of my profession.
Am I required to produce such
affidavit and appointment book
by 31 May 2014? I wont be back
in the Philippines until mid July
2014. Will I be fined if I submit
those documents once I get
back to practice??
FAQ 2. MDS
TRAINING ABROAD
NOT IN ACTIVE
PRACTICE
ANSWER:
IT APPEARS THAT THEY
HAVE THE SAME
CONTENTS.
Question
Received this from PSAAI
including attachments. BIR
MEMO said to register only
two Books : book of
appointments/appointment
logbook and book of accounts (I
am assuming this is the cash
receipts logbook)
The second file entitled books
states we should register a
patient registry and an
appointment logbook. Aren't
they one and the same?
FAQ 3. BOOKS TO
BE SUBMITTED TO
BIR
ANSWER:
ALL INCOME
GENERATING
ACTIVITIES IN THE
PROFESSION SHOULD
BE INCLUDED, OUT-
PATIENTS AND IN-
PATIENTS AS WELL
Question
Would like to know what
exactly are to be
included in the affidavit
to be submitted to BIR.
Do we include
consultation fees for our
patients seen at the OPD
only or do we also
include professional fees
for patients confined in
the hospital (medical and
surgical cases)?
FAQ 4. CHECKLIST
ANSWER:
WILL RAISE THE MATTER TO THE COMMISSIONER
EXEMPTING PROF SERVICES FROM VAT NEEDS LEGISLATION.
Comment :
I would also like to
reiterate our concern
on doctors being VAT-
registered. Hospital
are non-VAT, and
physicians feel that
medical care should
not be vatable.,
including doctors. VAT
increases professional
fees by 12 percent,
increasing the total
cost of hospitalization.
FAQ 5. ABOUT VAT
AND PROFESSIONAL
FEES
ANSWER:
WILL RAISE THE MATTER TO THE COMMISSIONER
EXEMPTING PROF SERVICES FROM VAT NEEDS LEGISLATION.
Comment :
I would also like to
reiterate our concern
on doctors being VAT-
registered. Hospital
are non-VAT, and
physicians feel that
medical care should
not be vatable.,
including doctors. VAT
increases professional
fees by 12 percent,
increasing the total
cost of hospitalization.
FAQ 5. ABOUT VAT
AND PROFESSIONAL
FEES
ANSWER:
WE FIND THE SAMPLE DRAFT AFFIDAVIT SUBMITTED BY A PCP DOCTOR SUFFICIENT.
IT'S APPROVED .
Comment :
Physicians can just
plug in the rates that
they want and remove
and/or revise
statements that do not
pertain to their
practice.
FAQ 6. SAMPLE
TEMPLATE
APPROVED BY BIR
ANSWER:
NO, while under the Expanded Senior Citizens Act your mother is a dependent, the law does not entitle the Benefactor to claim the additional exemption against taxable income amounting to P25,000.00.
QUESTION
I am a single parent and
my mom is fully
dependent on me . Her
medicines /
hospitalizations .. Can I
include her as my
dependent?
Just a question that you
might bring up to
commissioner Henares
Cause I spent almost half
of my earnings are spent
on her needs .
FAQ 7. SENIOR
CITIZENS
ANSWER:
NO, AS THEY ARE NOT SELF- EMPLOYED.
HOWEVER, IF, IN ADDITION,THEY ARE IN CLINICAL PRACTICE THEN COMPLIANCE IS NECESSARY IN SO FAR AS THE INDEPENDENT PRACTICE IS CONCERNED.
QUESTION
How about the MDs in
workplaces working as
medical directors or
company physicians?
They don't receive
professional fees but
only salaries with
automatic tax deduction?
Will they file same
affidavit ?
FAQ 8. MDS
IN WORKPLACES
ANSWER:
Yes, it can be mentioned that that is one activity of the anesthesiologist.
HOWEVER, THIS WILL NOT BE AN EXEMPTION FROM MAINTAINING AN APPOINTMENT LOGBOOK WHICH SHOULD BE MAINTAINED IN THE PLACE WHERE HE/SHE HAS AN OFFICE OR if none, then the address as shown in the BIR registration. SUCH LOGBOOK THEN SHALL CONTAIN SUCH INFORMATION AS DESCRIBED ABOVE
QUESTION
Some anesthesiologists
have clinic spaces only for
billing purposes and we do
not see patients in the
clinics. Our patient
engagement starts with the
pre-op rounds the night
prior to surgery when the
patients are referred to us.
In essence we do not have
clinic appointments. Can we
just include a statement
stating the above
circumstances in our
Affidavit so we can be
exempted from getting an
appointment logbook?
FAQ 9.
ANESTHESIOLOGISTS
ANSWER:
A) No
B) as a rule, yes
C) P50,000 (by law, THE
amount of personal exemption)
QUESTION
A) Are unpaid PFs tax
deductible?
B) Are senior citizen
doctors, say 70 or 75 yrs
and above still required
to file income tax.
C) What is the maximum
annual income for senior
doctors not to file income
tax?
FAQ 10.
ANSWER:
Exempting prof services from
VAT needs legislation.
QUESTION
Dear sir, i must agree with
the suggestion of removing
the vat for doctors if
hospitals are non vat. This
will also ensure compliance
and more accurate
accounting because it is
hard to monitor who was
charged with vat and who
was not (senior citizen and
pwd are vat exempt)
particularly if pf was paid
thru the hospital. This will
also be for patients benefit
that they are not given
additional expense.
FAQ 11. FROM A
GASTROENTEROLOGIST
ANSWER:
Item A is okay but will need to
revise the current guidelines in
the next few months.
Item B may not be given due
course. Issuance of OR even
if free will prove that there was
an activity.
QUESTION
A) Combine appointment
book with clinic registry
book .Three columns-
name, time and
payment mode(HMO,
cash or no charge)
B) No more receipt for no
charge dozen they will
just consume our
receipts, our
books, and increase
the number of authority
to print payments
(1000 per 20 books).
FAQ 12. BIR
SUGGESTIONS :
ANSWER:
The purpose is to ensure that
the 10 or 15% withholding tax
is collected, even if the patient
is not in trade or business.
QUESTION
On PFs being directed to
the hospital billing, I think
physicians have the right to
send bills to their clinics as
long as receipts are given in
the clinic. BIR has no right
to force the physician to
send his bill through billing if
he does not want to.
Hospitals do not pay the
physicians right away, it can
take from 2 weeks to even
months before some
hospitals actually pay the
doctor.
FAQ 13. RE: 14-1023
ANSWER:
PRACTICE VARY FROM ONE
TO ANOTHER, THAT IS WHY
THERE IS NO PARTICULAR
FORMAT AT THE
MOMENT. What is important
is to have a record on
chronological order of the
Patients, Nature of
Service/Treatment, etc
QUESTION
How can we simplify
the books to be
submitted to BIR ?
Different RDOs will
mandate variable
requirements ? Can
we have one official
checklist of the
books for the
patients to be
submitted ?
FAQ 14. BOOKS TO BE
SUBMITTED
ANSWER:
NO, ONLY ONE FOR
HIMSELF. MAINTAIN THE
ENTRIES IN CHRONOLOGY.
(we can not be in two places at
one time).
QUESTION
How about MDs
practicing in different
hospitals ? Should
they submit different
affidavits ? A
different affidavit for
a different hospital?
FAQ 15. MDS PRACTICING IN
SEVERAL HOSPITALS
ANSWER:
PEDIA-SENIORS? Are there 60 year olds seeking treatment from children's doctors?
ASSUMING YES, IT IS DESIRED THAT THEY SHOULD HAVE A SEPARATE VOLUME. HOWEVER, IF THE SENIORS' DATA COULD BE INTEGRATED IN THE JOURNALS, i. e., the Cash Receipts or Sales Book, or Appointment Book, THEN THERE IS NO NEED TO MAINTAIN ONE, PROVIDED DATA CAN BE EXTRACTED THEREFROM.
QUESTION
Do they have to
acquire a Senior
Citizen's Logbook
FAQ 16. FAQ FROM OUR
PEDIATRICIANS
ANSWERS:
1. THE TAXPAYER SHOULD
HAVE THE ORIGINAL COPY
WHICH IN TURN SHOULD BE
USED BY THE PRINTER
(MEDICAL PROFESSIONAL).
2. THE BIR SHOULD ISSUE A
COPY.
QUESTIONS
1. Why are we not
provided a copy of this
authority to print,
which is exclusive for
each clinic we have?
2. If it is accidentally lost
by a BIR personnel
handling it, how do we
make arrangements to
have it made and
released again? For
this one, which
actually happened for
her clinic in Asian
Medical Center,
apparently because of
office re-assignments.
FAQ 17. " THE AUTHORITY TO
PRINT"
WE CAN INDIVIDUALLY AND COLLECTIVELY COMMIT TO
RESHAPING OUR COUNTRY, THE PHILIPPINES, TOGETHER AS
ONE MEDICAL COMMUNITY.
WE ARE A PROFESSIONAL ORGANIZATION COMMITTED TO THE
WELLBEING OF ALL OUR STAKEHOLDERS, PATIENTS,
MEMBERS, PARTNERS, COMMUNITIES, AND GOVERNMENT
WE ARE RESPONSIBLE CITIZENS COMMITTED TO BUILDING A
BETTER PHILIPPINES FOR OUR CHILDREN AND THE
GENERATION TO COME.
SUMMARY : WE, THE MEDICAL
ORGANIZATIONS, AFFIRM THAT
BIR DEPUTY COMMISSIONER NELSON ASPE:
0917 5572304
ANTHONY C. LEACHON, MD, FPCP, FACP:
President-elect, Philippine College of Physicians
0917 5303788
PCP SECRETARIAT: KARLA M. REYES, RN
02 9102253
Units 2201-2203 One San Miguel Avenue Bldg.,
San Miguel Avenue cor. Shaw Blvd. Ortigas Center,
Pasig City 1605
CO
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QU
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THANK YOU!