Revenue Dept warns private healthcare providers not to collect 2% of income tax from patients

Revenue Dept warns private healthcare providers not to collect 2% of income tax from patients
Published 27 September 2023

The Internal Revenue Department has said that some private healthcare providers are wrongfully collecting two percent of income tax from patients instead of subtracting that parentage from payments made to the healthcare provider.

The department has announced that officials from private healthcare professions shall not collect two percent of their income tax from medical recipients.

A tax withdrawal program by the Internal Revenue Department at the time of payment of money from the vocational education of healthcare providers in private health services began on September 1 this year, with the responsibilities of those responsible for withdrawing money from private health services and by health-care providers who would be taxed. Those responsibilities to be performed have already been announced.

The tax-receipt program at the time of the withdrawal is the only income tax charged on the income of health care providers.

Therefore, officials in private health industries are notified that they will not engage in a two-percent income tax collection from medical recipients at all. The vocational education of healthcare providers is a type of service that should not be traded, so it is not necessary to collect trade taxes from medical recipients.

The Internal Revenue Department has also announced that the implementation of tax withdrawal processes needs to be overseen by those responsible.