7 Tax Questions Medical Practitioners Must Know in 2025 (Part 1)

7 Tax Quetions Medical Practitioners Must Know Part 1 Featured Image

Published: 15 May 2025

Navigating taxes as a specialist doctor isn’t always straightforward.

Whether you’re providing consultation services, taking locum assignments, or investing in your professional growth, every decision can have tax implications.

In this first of our two-part series, we will share with you some tax related questions by medical practitioners to us.

Here’s what they shared:

Q1.Is consultation fee income taxable when paid through a private company?

A1.YES

Regardless of the payer, the income is derived from providing medical consultation services.

For self-employed doctors not under an employment contract, these fees are taxable as business income under Section 4(a) of the Income Tax Act 1967.

Is consultation fee income taxable in private company section image

Q2. What tax-deductible expenses can a specialist doctor claim?

A2. Specialist doctors can claim various tax-deductible expenses often overlooked, including:

  • Medical equipment and supplies.
  • Professional fees (e.g., annual membership renewals).
  • Professional insurance (e.g., medical indemnity insurance).
  • Staff remuneration (e.g., salaries for nurses or clinic assistants).
  • Practice-related travel expenses.

This list is not exhaustive—other expenses may also qualify if they are incurred solely for business purposes.

tax-deductible expenses can a specialist doctor claim section image

Q3. Is locum income classified as business income or other income?

A3. The classification of locum income depends on the nature of the work:

  • If the locum work is regular, independent, and profit-oriented (e.g., serving multiple clinics or managing your own schedule), it qualifies as business income under Section 4(a).
  • If the locum work is irregular, casual, or a side activity without a formal business structure, it may be categorized as other income under Section 4(f).

Properly assessing your locum activities is essential for accurate tax reporting.

Want to know what are the other tax related questions commonly asked by medical practitioners? Follow our website closely for the second part of this series as we answer more tax related questions by medical practitioners to us!


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