The "new for-profit medical institutions, exempted from business tax for three years" must meet certain conditions, that is, the income obtained by the for-profit medical institutions are not used for the distribution, but for the purchase of medicines, medical equipment, etc., in order to improve the conditions of medical care and health. Zhangzhou Western Medicine Clinic purchased ECG testing equipment, belonging to the scope of the improvement of medical and health services, but can not be recognized as a business of three years of tax exemption, but also need to be competent tax authorities in accordance with the Fujian Provincial Bureau of Local Taxation to determine the approval authority of the tax exemption and review and approval of the report at each level. For example, if the outpatient clinic uses part of the income obtained to improve medical and health conditions, while most of the income is used for distribution or personal consumption, it is obvious that it cannot obtain approval to enjoy tax exemption benefits.
In practice, the amount of medical equipment purchased cannot be used as the basis for sales tax exemption. Income exempted from business tax refers to all medical income, and non-medical service income such as property lease income, property transfer income and training income obtained by medical institutions are not eligible for tax exemption.
In addition, Cai Shui [2000] No. 42 also stipulates that profit-making medical institutions meeting the above conditions shall be exempted from value-added tax from the date of obtaining business licenses for their self-produced and self-use preparations, and shall be exempted from property tax, urban land use tax, and vehicle and vessel use tax on their self-use properties, land, and vessels, and shall be reinstated to the tax after the expiry of the three-year tax exemption period.