If you’re a physician in the Philippines, filing your income tax return (ITR) is a legal requirement, regardless of whether you work in a hospital, run a private clinic, or do both.
The good news: once you know which category you fall under and which form to use, the process is straightforward. Read on to learn exactly what to do, or jump straight to filing if you’re ready.
Focus on your patients. You or your admin assistant can file your taxes online in minutes through Taxumo.
First: Are You an Employed or Self-Employed Physician?
Everything about your ITR (the form you use, the documents you need, and whether you even have to file manually) depends on this one question.
You are an employed physician if you work under an employer-employee relationship with a hospital or clinic, receive a fixed salary, and your employer deducts taxes from your pay every month.
You are a self-employed physician if you run a private practice, earn professional fees (PFs) from hospitals without a formal employment contract, or operate as an independent consultant.
You are a mixed-income earner if you do both. For example, you hold a regular hospital position while also accepting private patients on the side.
You're all set!
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SIGN UP FOR FREEEmployed Physicians: Do You Even Need to File?
Many employed physicians qualify for substituted filing, which means your employer files the ITR on your behalf and you don’t need to submit anything separately to the BIR.
You qualify for substituted filing if all of the following are true:
- You earned purely compensation income during the year
- You had only one employer in the Philippines for the entire taxable year
- Your tax due at year-end equals the total tax your employer already withheld
- Your employer filed your BIR Form 2316 on your behalf
If you meet all four conditions, your BIR Form 2316 (Certificate of Income Tax Withheld on Compensation) is effectively your ITR. Keep it on file. You don’t need to go to the BIR.
When Employed Physicians Must File (BIR Form 1700)
You are required to file BIR Form 1700 if any of the following apply:
- You had more than one employer during the year
- Your tax due does not match the amount withheld
- You earned additional income outside your employment that is not subject to final tax
- Your monthly gross compensation was less than ₱5,000
- Your spouse does not qualify for substituted filing
Documents needed for Form 1700:
- BIR Form 2316 from your employer
- Waiver of the husband’s right to claim additional exemption (if applicable)
- Duly approved Tax Debit Memo (if applicable)
- Proof of Foreign Tax Credits (if applicable)
- Previously filed ITR and proof of payment (if amending)
Self-Employed Physicians: BIR Form 1701 or 1701A
If you practice privately or earn professional fees, you’ll file either BIR Form 1701 or BIR Form 1701A, depending on which tax rate you choose.
The 8% Flat Tax Option (Most Physicians Should Know This)
Under the TRAIN Law, self-employed professionals with gross income below ₱3,000,000 can choose between two tax approaches:
Option 1: Graduated income tax rates (the default)
You pay tax based on a progressive rate table, and you may deduct either actual expenses or the Optional Standard Deduction (OSD) of 40% of gross income. You also need to file quarterly percentage tax (BIR Form 2551Q).
Option 2: 8% flat tax on gross income
You pay a flat 8% on your gross professional income in excess of ₱250,000. No percentage tax. No OSD. Simpler math, fewer forms to file.
The 8% option is often the better choice for physicians with relatively low deductible expenses. To elect it, indicate your choice when filing your first quarterly ITR (BIR Form 1701Q) for the year.
💡 If your gross income exceeds ₱3,000,000, you are VAT-registered and must use the graduated rates. The 8% option is not available to VAT-registered taxpayers. Not sure which applies to you? Chat with our team for guidance.
Which form to use:
- BIR Form 1701 is for mixed-income earners (employed + self-employed) and those under the graduated tax rate
- BIR Form 1701A is for purely self-employed individuals who chose the 8% flat tax or the graduated rate with OSD
Documents Needed for Self-Employed Physicians
- BIR Form 2316 (if you also have an employer), if applicable
- BIR Form 2304 (Certificate of Income Payments Not Subjected to Withholding Tax), if applicable
- BIR Form 2307 (Certificate of Creditable Tax Withheld at Source), if applicable
- Waiver of the husband’s right to claim additional exemption, if applicable
- Duly approved Tax Debit Memo, if applicable
- Proof of Foreign Tax Credits, if applicable
- Account Information Form (BIR Form 1701 AIF) or Certificate of the Independent CPA with Audited Financial Statements, for those using actual deductions
- Previously filed ITR and proof of payment, if amending
- Proof of prior year’s excess tax credits, if applicable
Key Tax Deadlines for Physicians
| Filing | Deadline |
|---|---|
| Annual ITR (Form 1700, 1701, or 1701A) | April 15 |
| 1st Quarter ITR (Form 1701Q) | May 15 |
| 2nd Quarter ITR (Form 1701Q) | August 15 |
| 3rd Quarter ITR (Form 1701Q) | November 15 |
| Quarterly Percentage Tax (Form 2551Q) | 25th of the month following the quarter |
💡 Missing the April 15 deadline for your annual ITR results in a 25% surcharge on your tax due, 12% interest per year, and compromise penalties. The BIR also occasionally extends deadlines via Revenue Memorandum Circulars (RMCs).
How to File
Once your documents are in order, you have two options.
Online filing via eBIRForms or Taxumo
The faster route. Most physicians can file and pay entirely online without visiting a BIR office. Taxumo auto-computes your tax due, generates the correct BIR form, and lets you pay through multiple channels, all in one place.
Manual filing at the RDO
Fill out your BIR form in three copies (print clearly). Bring your form and supporting documents to the Authorized Agent Bank (AAB) of your Revenue District Office (RDO). If payment is due, pay at the teller and keep the validated form as your receipt. If no payment is due, submit directly at your RDO.
Skip the Line. Let Taxumo Handle It.
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