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

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.

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.

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.