With recent updates to BIR regulations, there have been queries and concerns regarding the issuance of Official Receipts (ORs) in association with services rendered through SeriousMD.
We understand the need for clarity and our aim here is to address these concerns below:
What is SeriousMD & NowServing?
SeriousMD & NowServing is a technology platform that connects doctors and patients and vice versa. SeriousMD & NowServing is not a hospital, a medical institution nor is it an HMO or insurance provider, thus, we cannot issue ORs to patients for anything other than the service fees that may be charged to them within the platform.
For the purposes of the BIR Regulations, we are more similar to e-commerce platforms like Shopee or Lazada, hence, why some regulations intended for digital platforms affect us and not others.Responsibility for Official Receipt Issuance:
Due to the definition above, doctors and other healthcare providers are responsible for issuing Official Receipts directly to the patients for the payments they receive.
SeriousMD/NowServing is limited to issuing Official Receipts for the service fee.
If SeriousMD/NowServing is the one that receives payment on behalf of the doctor/healthcare provider and then transfers these payments to them, the above set up still applies. Doctors do not need to issue an Official Receipt to SeriousMD & NowServing.
Application of Withholding Tax:
Doctors receive their professional fees through SeriousMD/NowServing, with a withholding tax of 0.5% applied to these payouts (exemptions may be applied).
The withholding tax is reflected in the 2307 form issued by SeriousMD/NowServing to doctors at the end of each quarter.
Doctors are not required to include withholding tax in the Official Receipts issued to patients. ORs to patients should reflect the full amount paid by them.
Reconciliation with Form 2307:
Doctors must ensure that their ORs issued to patients align with the total amounts received from patients, irrespective of withholding tax.
Form 2307 provided by SeriousMD/NowServing will reflect the withholding tax on doctor's payouts. This should be accurately reported during tax filing, including with the quarterly Income Tax Return (ITR).
Timing of Withholding Tax Reporting:
Withholding tax applied by SeriousMD/NowServing is processed at the time of payout to doctors, not at the time of patient booking.
Form 2307 reflects the withholding tax for the respective quarter, aligning with the timing of payouts and tax reporting.