Revenue Regulations No. 11-2018

Revenue Regulations No. 11-2018 implements the income tax provisions of the Tax Reform for Acceleration and Inclusion (TRAIN) Law (Republic Act No. 10963). Here are the key points relevant to doctors:


New Income Tax Rates
RR No. 11-2018 introduces new graduated income tax rates for individuals, including self-employed professionals like doctors. The new rates are as follows:

  • Annual taxable income up to PHP 250,000: exempt
  • Over PHP 250,000 to PHP 400,000: 20% of the excess over PHP 250,000
  • Over PHP 400,000 to PHP 800,000: PHP 30,000 + 25% of the excess over PHP 400,000
  • Over PHP 800,000 to PHP 2,000,000: PHP 130,000 + 30% of the excess over PHP 800,000
  • Over PHP 2,000,000 to PHP 8,000,000: PHP 490,000 + 32% of the excess over PHP 2,000,000
  • Over PHP 8,000,000: PHP 2,410,000 + 35% of the excess over PHP 8,000,000

8% optional tax rate
Self-employed professionals, including doctors, can now opt for an 8% flat tax rate on their gross sales or receipts in excess of PHP 250,000, instead of the graduated income tax rates and percentage tax. However, once this option is chosen, it cannot be changed within the taxable year.

Withholding Tax Rates on Professional Fees
The TRAIN Law modifies the withholding tax rates on professional fees earned by doctors and other professionals, as follows:

  • 5% if the doctor’s gross income for the current year does not exceed PHP 3 million
  • 10% if the doctor’s gross income for the current year exceeds PHP 3 million
  • Higher threshold for withholding tax: RR No. 11-2018 increases the threshold for withholding tax on professional fees from PHP 10,000 to PHP 250,000. Payments made to a doctor within a taxable year that are equal to or less than PHP 250,000 are exempt from withholding tax. If the total payments exceed PHP 250,000, withholding tax will be applied on the excess amount.

By understanding the key points of RR No. 11-2018 relevant to doctors, they can ensure compliance with tax regulations in the Philippines, maintain proper documentation of their income, and fulfill their tax obligations.