With the relationship between doctors and hospitals redefined by the Department of Health, doctors are expected to pay more tax starting May of 2012. The Ministry of Finance has announced that doctors' wages will be regarded as salary instead of income from professional practice.

Former Health Minister once made a harsh threat to downgrade the Changgung Hospital from a medical center to a district hospital over its collecting excessive NHI premium fees from its attending physicians.

The National Health Insurance Bureau imposed a fine of 400 million NTD on the hospital.

Before Yang left the office, one of the last documents he approved was forwarded to the Ministry of Finance.

The document clarifies the relations between hospitals and doctors, who are deemed as employees, instead of the current standard that view all the attending physicians as independent medical practitioners.

However, doctors would have to pay more taxes under the new system.

For example, if a doctor makes 5 million NTD each year, only 20% of the income is tax deductible.

Therefore, 4 million NTD are taxable.

The tax rate is 30%, meaning that they'll have to pay 1.2 million NTD of tax.

Starting from next year, the tax deductible is only 104,000 NTD and the tax rate is raised to 40%.

In other words, the income tax would increase to 1.9485 million, about 0.75 million more than the tax they have to pay now.

Taiwan Hospital Association suggests the government to include doctors in the Labor Standard Law.

Department of Health can examine and regulate inappropriate labor conditions and relations and offer better protection to patients and doctors.

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