BIR Form 2307 for Dialysis Centers and Home Healthcare Providers

A free-standing dialysis center billing an HMO, hospital, or corporate payor as a business entity is withheld at the flat 2% general services rate — the same bracket used for a diagnostic laboratory or imaging center — not the 5%/10% rate reserved for an individually licensed professional’s own fee. A home healthcare agency’s nursing or caregiving service fee follows the identical facility-vs-professional split, and a single dialysis claim often carries both rates on two separate line items at once.

This guide is part of the BIR Form 2307 series. It covers the facility-fee-vs-professional-fee classification for dialysis centers and home healthcare providers, plus a worked HMO-panel example.

Why doesn’t a dialysis center get the named-professional rate? #

RR No. 2-98’s 5%/10% professional-fee bracket is reserved for individually licensed professionals named in the regulation — physicians, lawyers, CPAs, engineers, and similar PRC-licensed individuals acting in their own name — not for the business entity operating the facility where that professional works. A dialysis center organized as a corporation or partnership isn’t itself a licensed professional; it’s a healthcare business billing for equipment, supplies, nursing support, and facility use. That places its own service fee under the flat 2% general services bracket instead, the same treatment already established for diagnostic laboratories and imaging centers:

“(A) In general, any juridical person, whether or not engaged in trade or business; (B) An individual, with respect to payments made in connection with his trade or business…”

— RR No. 2-98, Section 2.57.3(A)–(B)

The attending nephrologist’s own professional fee for overseeing the dialysis session — billed separately, even when routed through the same HMO claim — keeps the named-professional 5%/10% treatment, because that fee belongs to the individually licensed physician, not the facility.

Facility fee vs professional fee: the full split #

A sole-proprietor dialysis center registered under an individual physician’s own TIN — rather than as a separate juridical entity — is a less common structure, but where it genuinely exists, the individual-payee rate (WI160) applies instead of the corporate code; the 2% rate itself stays the same either way, only the corporate-vs-individual code changes.

Worked example: an HMO-panel dialysis claim #

RenalCare Dialysis Center, a corporation, holds a service panel agreement with a national HMO. For one patient’s monthly dialysis sessions, the HMO’s claim breaks into two components: ₱45,000 for RenalCare’s facility and equipment fee, and ₱8,000 for the attending nephrologist’s professional fee, billed under her own TIN.

The HMO issues two separate BIR Form 2307 certificates — one to RenalCare under its corporate TIN and ATC WC160, one to Dr. Santos under her individual TIN and the named-professional code — even though both payments originate from the same patient claim and the same monthly remittance run.

Frequently asked questions #

Does an HMO or hospital withhold tax when paying a dialysis center’s facility fee? #

Yes, if the paying party is a withholding agent — most HMOs, hospitals, and corporate payors are. A free-standing dialysis center billing as a business entity (not an individually licensed professional) is withheld at the flat 2% general services rate under ATC WC160/WI160, distinct from a doctor’s own named-professional fee.

What rate applies to the nephrologist’s own professional fee for overseeing dialysis sessions? #

5%/10%, the standard named-professional bracket for individually licensed physicians under RR No. 2-98 Section 2.57.2(A) — 5% up to ₱3,000,000 in cumulative gross income from the payor for the year, 10% beyond that. This applies only to the doctor’s own fee, separate from the facility fee billed by the dialysis center itself.

Does a home healthcare agency get withheld the same way as a dialysis center? #

Yes, if the agency bills as a corporate or business entity rather than the patient hiring an individual nurse directly — the agency’s service fee withholds at 2% (WC160/WI160) as a general service, the same bracket a diagnostic laboratory or imaging center uses, rather than the 5%/10% individual-professional rate.

What if a family hires an independent home-care nurse directly, not through an agency? #

If the nurse is individually PRC-licensed and paid directly by a withholding-agent payor (for example, a company covering an executive’s home care as a benefit), the 5%/10% named-professional bracket can apply to that individual’s own fee — the same way it applies to other individually licensed professionals. A private family paying out of pocket is not a withholding agent at all and withholds nothing.

Why does the facility-vs-professional distinction matter for a dialysis center specifically? #

Because one dialysis session typically generates two separate billable amounts on an HMO claim — the center’s facility/equipment fee and the attending nephrologist’s professional fee — and mixing the two onto one withholding rate either overwithholds the center or underwithholds the doctor. Keeping them on separate ATC codes is what makes the SAWT and QAP DAT files reconcile correctly at filing time.

Summary #

A dialysis center or home healthcare agency billing as a business entity withholds at the flat 2% general services rate (WC160/WI160), the same bracket used for diagnostic laboratories and imaging centers — while the individually licensed physician’s or nurse’s own professional fee keeps the separate 5%/10% named-professional treatment, even when both amounts travel through the same HMO claim. See BIR Form 2307 for Diagnostic Laboratories and Imaging Centers for the parallel facility-vs-professional split, and BIR Form 2307 for Medical Practitioners for the hospital-clinic side of named-professional withholding.