Tax planning for medical practitioner to be in accordance with the principles of personal income tax

Abstract

Medical profession is one of professionals, which is said to have a higher and potentially more taxable income than other professionals, leading to problems in paying personal income tax. This includes errors in filing returns and paying personal income tax. An issue that is often raised for debate is the misclassification of doctors' income.
This academic article aims to provide information to medical professionals on how to correctly classify income for the benefit of planning personal income tax to pay the least amount of tax in accordance with the law by collecting information from laws, court decisions and discussions of the Revenue Department related to personal income tax of medical professionals. If doctors understand the classification of income, they will be able to plan their income from their work and prepare contracts related to their duties appropriately.
Medical practitioners are individuals and are subject to progressive personal income tax. When a doctor has a large amount of taxable income, there will be a limitation on the ceiling of deductions. That is, working in a way that has a binding contract between the employer and the employee, having a regular income, and accepting work that specifies a fixed rate of compensation will cause the doctor who has income to pay a higher tax rate than providing medical services in the form of opening a clinic or opening a hospital with overnight patients. Although the Ministry of Public Health has determined that doctors who do not open clinics or work in private hospitals receive additional compensation to encourage medical personnel to devote their time to providing full service to the public. However, if we consider it from the perspective of tax planning, earning more income from opening a clinic may have a better effect on tax planning. Therefore, if medical professionals study and understand various legal issues, it will result in doctors planning and determining the working format and type of work that is appropriate for the type of income that results in paying the least amount of tax according to the law, without being charged retroactive taxes, paying fines, surcharges or criminal penalties.