BIR Form 2307 for Dermatology Clinics and Aesthetic Centers

A dermatology or aesthetic clinic that bills a patient and shares the professional fee with a visiting, fee-split dermatologist is the withholding agent on that fee, and must withhold expanded withholding tax (EWT) and issue BIR Form 2307 under Section 2.57.2(A) of Revenue Regulations (RR) No. 2-98, as amended by RR No. 11-2018 — the same hospital/clinic withholding rule covered elsewhere in this series for medical practitioners generally. An in-house, salaried dermatologist or aesthetician is a different case entirely, withheld under compensation rules and issued BIR Form 2316 instead.

This guide is part of the BIR Form 2307 series. It applies the hospital/clinic professional-fee withholding rule specifically to dermatology and aesthetic practice, draws the line between a visiting practitioner and an in-house employee, and works through a laser-procedure fee split.

Who withholds on a dermatologist’s professional fee? #

The clinic through which a patient’s payment passes is the withholding agent — not the patient, and specifically when the dermatologist is a visiting or affiliated practitioner rather than a clinic employee. Dermatology and aesthetic clinics commonly bring in dermatologists on a fee-split or per-procedure basis, using the clinic’s facilities, staff, and equipment rather than hiring them outright. Section 2.57.2(A) of RR No. 2-98, as amended by RR No. 11-2018, covers exactly this arrangement: hospitals, clinics, and HMOs must withhold EWT on the professional fees of accredited medical practitioners — doctors of medicine, which includes dermatologists — and issue BIR Form 2307 to each one.

As this series’ guide on medical practitioners covers in more depth, this rule exists because most attending or visiting doctors are independent practitioners rather than salaried staff, so the clinic — the party actually handling the cash — is made responsible for withholding at source.

Visiting dermatologist vs. in-house, salaried staff: why the form changes #

A clinic does not withhold the same way for every dermatologist or aesthetician on its premises — the governing rule turns on whether an employer-employee relationship exists. A visiting or fee-split dermatologist who bills the clinic (or is billed to the patient and shared with the clinic) per procedure is an independent professional, subject to EWT under Section 2.57.2(A) and issued BIR Form 2307. An in-house dermatologist or aesthetician who receives a fixed salary, follows the clinic’s set hours, and is under its control is an employee under NIRC Section 79 and RR No. 2-98, Section 2.78.1 — subject to compensation withholding reported through BIR Form 1601-C monthly and reconciled on BIR Form 2316 at year-end, never BIR Form 2307.

Clinics that bring in the same specialist both ways — a fixed weekly retainer for clinic hours plus a separate per-procedure fee-split for referred cases — need to track which payment falls under which rule, since mixing the two on one certificate misstates both.

What rate and ATC code apply to a visiting dermatologist’s fee? #

A visiting dermatologist is an individual professional payee, so the same 5%/10% tiers that apply to any other medical practitioner under RR No. 11-2018 apply here too.

The dermatologist establishes eligibility for the lower 5% rate by submitting an Income Payee’s Sworn Declaration of Gross Receipts/Sales, together with a copy of their BIR Certificate of Registration, to the clinic — see BIR Sworn Declaration for Lower Withholding for how that declaration works. Without it, the clinic withholds at 10% rather than assume the lower rate.

Does withholding reach retail skincare products sold with the procedure? #

No — a separately itemized retail sale of skincare products, serums, or take-home kits is a sale of goods, not a professional fee, and sits outside Section 2.57.2(A) entirely. Clinics that bundle a procedure with product sales should itemize the professional fee and the product charge separately on the patient’s bill and in their own records; only the professional-fee line is subject to this withholding rule, while the product sale follows the clinic’s ordinary VAT or percentage tax treatment on goods.

When is no withholding required? #

Withholding does not apply when no professional fee was actually charged and paid — a courtesy procedure for a fellow practitioner or staff member, for instance — but only if that fact is documented, not merely assumed.

The withholding tax shall not apply whenever there is proof that no professional fee has in fact been charged by the medical practitioner and paid by his patient, provided this fact is shown in a sworn declaration jointly executed by the medical practitioner and the patient, or the patient’s duly authorized representative in case the patient is a minor or otherwise incapacitated.

— Section 2.57.2(A) of Revenue Regulations No. 2-98, as amended by RR No. 11-2018, as reproduced across BIR compliance references summarizing the hospital/clinic withholding provision.

The joint declaration is kept on file at the clinic and produced for a revenue officer on request. Without it, the BIR’s default assumption is that a fee was charged, and the clinic withholds as usual.

Worked example: a visiting dermatologist’s laser procedure fee #

Suppose Dr. Santos, a dermatologist accredited at (but not employed by) GlowDerm Aesthetic Center, performs a laser resurfacing procedure billed at ₱15,000, split 70% to Dr. Santos and 30% retained by the clinic for facility and staff use. Dr. Santos has a current sworn declaration on file confirming gross income for the year has not exceeded ₱3,000,000, so ATC WI010 at 5% applies to her share.

GlowDerm remits the ₱525 withheld through BIR Form 0619-E monthly and BIR Form 1601-EQ quarterly, and issues Dr. Santos a BIR Form 2307 showing ₱10,500 as the income payment, ATC WI010, and ₱525 as tax withheld. Dr. Santos then credits that ₱525 against her income tax due when filing BIR Form 1701. Had she not submitted a sworn declaration, or had her cumulative gross income for the year already crossed ₱3,000,000, GlowDerm would instead withhold 10% (ATC WI011) — ₱1,050 on the same ₱10,500 share, releasing only ₱9,450.

By contrast, GlowDerm’s in-house aesthetician, employed full-time on a fixed ₱28,000 monthly salary, is withheld entirely differently — through the ordinary compensation withholding table on BIR Form 1601-C, reconciled on BIR Form 2316 at year-end, with no BIR Form 2307 involved at all.

Frequently asked questions #

Who withholds tax on a dermatologist’s professional fee at an aesthetic clinic? #

The clinic is the withholding agent when it collects the fee through its own billing system and shares it with a visiting or affiliated dermatologist, not the patient. Under Section 2.57.2(A) of Revenue Regulations No. 2-98, as amended by RR No. 11-2018, hospitals, clinics, and HMOs have the duty and responsibility to withhold and remit tax on the professional fees of their accredited medical practitioners — a category that includes dermatologists.

Does a clinic withhold the same way for a visiting dermatologist as for an in-house, salaried one? #

No. A visiting or fee-split dermatologist who is not the clinic’s employee is withheld under the expanded withholding tax (EWT) rule in Section 2.57.2(A), with the clinic issuing BIR Form 2307. An in-house dermatologist or aesthetician on the clinic’s payroll is instead subject to compensation withholding under NIRC Section 79, with the clinic issuing BIR Form 2316 at year-end — a different form under a different set of rules entirely.

What withholding rate and ATC code apply to a visiting dermatologist’s professional fee? #

A visiting dermatologist is withheld at the same individual professional-fee rate as any other medical practitioner under RR No. 11-2018: 5% (ATC WI010) if the doctor’s gross income for the current year does not exceed ₱3,000,000 and a sworn declaration is on file, or 10% (ATC WI011) if it exceeds ₱3,000,000, the doctor is VAT-registered, or no valid declaration has been submitted.

Does withholding apply to skincare products sold alongside a procedure? #

Not under this professional-fee rule. A clinic’s retail sale of skincare products or take-home items, separately itemized from the procedure fee, is a sale of goods subject to ordinary VAT or percentage tax rules rather than the Section 2.57.2(A) professional-fee withholding — the two should be itemized separately on the clinic’s records to avoid conflating them.

When is a dermatologist’s professional fee not subject to withholding tax? #

Withholding does not apply when no professional fee was in fact charged and paid — for example, a courtesy procedure for a fellow practitioner or staff member — provided this is documented in a sworn declaration jointly executed by the dermatologist and the patient (or the patient’s authorized representative if the patient is a minor or otherwise incapacitated), kept on file at the clinic.

Can BIR Online Tools help a clinic generate a dermatologist’s BIR Form 2307? #

Yes. The BIR Form 2307 module can generate certificates for visiting or fee-split practitioners from the clinic’s billing records, keeping the ATC code and rate consistent across every doctor the clinic pays this way.

Summary #

A dermatology or aesthetic clinic withholds EWT and issues BIR Form 2307 to a visiting, fee-split dermatologist under Section 2.57.2(A) of RR No. 2-98, as amended by RR No. 11-2018 — the same 5%/10% individual-practitioner tiers (ATC WI010/WI011) used elsewhere in this series — but switches entirely to compensation withholding and BIR Form 2316 for an in-house, salaried dermatologist or aesthetician. A separately itemized retail sale of skincare products sits outside this professional-fee rule altogether. For the underlying hospital/clinic rule this guide extends, see BIR Form 2307 for Medical Practitioners, and for the certificate’s general mechanics, see What Is BIR Form 2307.