The Importance of Tax Aware Intern Doctors

The improvement of the health system in Indonesia cannot be separated from the role of health workers, one of which is the role of intern doctors. The definition of a doctor based on tax regulations does not exist, but in the Big Indonesian Dictionary (KBBI) a doctor is someone who because of his knowledge tries to cure sick people.

To become a doctor, of course, requires special education and training and has a degree in medicine. After passing the Indonesian Doctor Competency Examination (UKDI), a practical exam called the National OSCE, and taking the doctor’s oath, the doctors will then undergo an internship program.

The program is a government program to place newly graduated doctors in various cities in Indonesia within a certain period of time. It is hoped that doctors who have just graduated from the Medical Education Study Program can apply and practice the competencies acquired during education in order to harmonize educational outcomes and practice in the field.

Program Terms

During the waiting period for the start of the internship program, the doctor will usually prepare the required files to be able to join the internship program. Quoted from the internsip.kemkes.go.id page, the required documents include a Certificate of Registration (STR) for an internship authority issued by the Indonesian Medical Council, an account book in one’s own name for payment of life support costs during the internship program, BPJS, as well as a Mandatory Identification Number. Tax (NPWP) in his own name.

For doctors who will undergo an internship program, but do not yet have a TIN, they can register online at the tax.go.id page. Then the NPWP card will be sent by the Tax Service Office (KPP) via an expedition service to the registered address filled in by the doctor at the time of registration. Please note that there is absolutely no charge for NPWP registration.

BBH Disbursement

One of the rights of participants in the internship program while carrying out their duties is to receive basic living expenses (BBH) assistance. The disbursement of BBH funds is through direct payments (LS) which are received directly by the accounts of participants in the doctor’s internship program through mechanisms and rules such as price eligibility, cost standards, principle permits from the Minister of Finance of the Republic of Indonesia.

Currently the applicable rule is the Decree of the Minister of Health of the Republic of Indonesia Number HK.02.02/MENKES/243/2016 concerning the Living Costs of Internship Doctors and the Honors of Accompanying Doctors for the Indonesian Doctor Internship Program. In the regulation, the amount of honorarium received by medical internship participants per month is Rp. 3,241,200 for the Sumatra, Java, Bali and West Nusa Tenggara regions. Meanwhile, for the regions of Kalimantan, East Nusa Tenggara, Sulawesi, Maluku, and Papua, it was Rp. 3,727,380, including assistance for the payment of Income Tax (PPh) Article 21, BPJS Health and Employment contributions.

BBH payments are made by transfer to the account of each intern doctor participant through the Satker Application System which is carried out specifically by the Jakarta VII State Treasury Service Office (KPPN). The financing is charged to the Budget Implementation List (DIPA) of the Ministry of Health.

Tax Aspect

Some people certainly ask, why are intern doctors required to make NPWP even though the income according to the Decree of the Minister of Health of the Republic of Indonesia No.HK.02.02/MENKES/243/2016 is under the Non-Taxable Income (PTKP)?

First, intern doctors can be categorized as non-continuous employees. Non-employees in the meaning of Article 21 Income Tax are private persons other than permanent employees and temporary employees/ freelancers who earn income in any name and in any form from withholding Income Tax Article 21 and/or Income Tax Article 26 as compensation for services performed based on orders or requests. from the income provider.

Continuous refers to income received by an intern doctor who is paid or owed more than once in a calendar year in connection with work, services, or activities. Therefore, the amount of Income Tax Article 21 for interns is 50% of gross income multiplied by the rate of Article 17 of the Income Tax Law.

Sample case

Made is an intern doctor who works in Bali. In August 2021, he received a gross BBH of IDR 3,241,200 with components consisting of:

BBH of IDR 3,000,000,

Article 21 Income Tax Payment Assistance of 2.5% of BBH, which is IDR 75,000,

BPJS Health Insurance Contribution Assistance 5% of BBH of Rp. 150,000,

Work Security Contribution Assistance 0.24% of BBH amounting to Rp 7,200, and

Death Benefit Assistance of 0.3% of BBH amounting to Rp 9,000.

Article 21 PPh payment rates of 2.5% are obtained from: (50% x Gross Income) x Article 17 Tariffs of the Income Tax Law

The applicable rate for income up to IDR 50,000,000 per year is 5%, in this case the gross income is the BBH amount of IDR 3,000,000.

If Made does not have an NPWP, he will be subject to withholding Article 21 Income Tax at a rate higher than 20% of the rate set for taxpayers who have an NPWP. So it will be more profitable for Made if he has a TIN to avoid the tariff increase.

In the process of disbursing BBH by KPPN, it can be received directly and quickly disbursed if all supplier data (name of participant, account number, and NPWP) are correct. It is certain that if the intern doctor does not have a NPWP, it will hinder the BBH disbursement process.

Tax Liability

Every taxpayer who has met the subjective and objective requirements in accordance with the provisions of the tax laws and regulations is obliged to register with the tax office whose work area includes the residence or domicile of the taxpayer.

From the previous explanation, it is known that currently, although intern doctors have not met the objective requirements because their annual income is below the PTKP, but for other reasons they can register to get a TIN. For intern doctors who already have an active NPWP, they are required to submit an Annual Income Tax Return (SPT) report every year before March 31 on the tax.go.id page.

If you do not submit the Annual Income Tax Return every year, you will be subject to administrative sanctions in the form of a fine of Rp. 100,000. To be able to submit your Annual Income Tax Return online for the first time, you must first activate EFIN by sending an EFIN application via personal email to the work unit email which can be viewed on the tax.go.id/id/unit-work page by attaching a selfie ( selfie) holding KTP and NPWP.

Cultivate Awareness

Apart from the obligation as a good citizen by having a TIN and submitting the Annual Income Tax Return every year, the importance of being aware of taxes since becoming an intern doctor is very beneficial. When the doctor’s internship program ends, doctors usually continue to work in various types of jobs, such as permanent employees in hospitals, educators, having independent medical practices, or even owning a pharmacy.

For doctors who work as permanent employees in hospitals and educators, the withholding of income tax will be deducted by the employer, the mechanism is similar to when undergoing an internship program. However, if the doctor continues his work by opening an independent doctor’s practice or opening a pharmacy, the doctor himself must calculate the tax that must be paid.

If since becoming an intern doctor, he has understood the correct reporting provisions, it is hoped that in the future he will not experience many obstacles in carrying out his tax obligations.