Taxation ยท KBLI 86201

Clinic & Medical Practice Tax

Health facilities such as clinics and doctor practices enjoy VAT exemption on medical services. However, Income Tax obligations still apply both for the clinic entity and doctors as individuals. Article 21 Income Tax schemes for employee doctors vs partner doctors have different treatments. Arunika Consulting helps clinics optimize tax positions while ensuring compliance.

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What usually goes wrong

  • Employee Doctor vs Partner Doctor Income Tax

    Employee doctors are withheld standard Article 21 Income Tax, while partner doctors (revenue sharing) are withheld Article 21 Income Tax non-employee with different calculations.

  • Medical vs Non-Medical Service Separation

    Medical services are VAT-exempt, but medicine and medical device sales may be subject to VAT depending on PKP status and goods type.

  • Withholding Proof for Collaborator Doctors

    Clinics must issue Article 21 Income Tax withholding slips for all partner doctors every month.

What we do

  1. 01

    Partner Doctor Article 21 Income Tax Setup

    Preparing accurate non-employee Article 21 Income Tax withholding systems for doctors with revenue sharing schemes.

    • Compliance maintained
    • Doctors satisfied
    • Withholding proof on time
  2. 02

    VAT Status Evaluation

    Analyzing whether PKP is needed for non-medical services portion (pharmacy, lab) or remain non-PKP.

    • Optimal VAT position
    • Efficient administration
    • Reduced sanction risk
  3. 03

    Clinic Corporate Income Tax Optimization

    Utilizing 0.5% Final Income Tax for SME clinics or expense planning for general rates.

    • Efficient tax burden
    • Planned cash flow
    • Clear growth planning

Related regulations

  • PP 55/2022

    Adjustment of Regulations in Income Tax Field

    Clinics in business entity form with turnover below IDR 4.8 Billion can use 0.5% Final Income Tax.

  • PP 49/2022

    VAT Exemption on Medical Health Services

    Doctor services, hospitals, and health facilities are exempt from VAT.

  • PPh Pasal 21

    Income Tax on Doctor Honorarium

    Article 21 Income Tax withholding on doctor income working in clinics/hospitals.

If the tax office starts asking questions

The team that keeps your books and files your taxes also stays with you through an SP2DK, an audit, an objection and an appeal.

How we handle tax disputes

Frequently Asked Questions

Must clinics become PKP?

If only providing medical services (VAT-exempt), PKP is not mandatory. But if there is significant medicine/medical device sales and turnover >4.8B, evaluation is needed.

How is Income Tax withholding for revenue sharing doctors?

Partner doctors are withheld Article 21 Income Tax non-employee: 50% of gross income considered net, then multiplied by progressive rate. Withholding proof 1721-VI is mandatory.

Is income from BPJS taxable?

Yes. Payments from BPJS remain taxable income for the clinic. BPJS also withholds Article 23 Income Tax on certain services.

Who handles my tax work?

Your tax work is handled by Arunika's tax consultants. We confirm the scope, deadlines and price before work starts.

What should I do if I receive an SP2DK letter or tax audit notice?

Contact us early. We help analyze the risk, prepare supporting documents, draft the response, and assist discussions with the tax office.

What does tax planning cover?

We review your structure, transactions and available incentives so tax is calculated under the rules, without crossing into tax evasion. The outcome depends on your facts, so we do not promise a savings figure.

Related Industries

Tell us about your business

Send your line of business, rough annual turnover, and what is going wrong. We reply on WhatsApp.

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