Guide · Taxation
Mixed income: employed doctor with private practice
A doctor who draws a salary from a hospital and also earns professional fees is a “mixed income earner.” Your employment income is withheld and reported on BIR Form 2316, while your practice income is taxed on top — and both are brought together on one annual income tax return.
Two income streams, one return
Your employer withholds tax on your salary and issues a Form 2316. Your private practice income is separate. At year-end both go on your annual income tax return (1701), with the tax already withheld on your salary credited against what you owe.
Your practice income
For the practice side you can use the 8% flat tax or graduated rates, and you file the quarterly returns for that income. The employment side stays with your employer's withholding.
General information based on current BIR rules for mixed income earners. Your account manager confirms how it applies to your situation.