Medical service income: for medical services obtained in accordance with the prices set by the state (refers to the examination of patients, diagnosis, treatment, rehabilitation, and the provision of preventive health care, midwifery, family planning services, as well as the provision of medicines, medical materials and appliances, ambulances, wards, accommodation and food business in connection with these services) Income is exempted from all taxes, including business tax, enterprise income tax and related surcharges and funds, etc.; income from medical services that is not obtained at the price set by the State is not eligible for this policy.
Non-medical Service Income: Non-medical service income, such as rental income, property transfer income, training income, foreign investment income, etc., shall be subject to various taxes in accordance with the regulations, including business tax, enterprise income tax and related surcharges and funds, etc.; for the non-profit medical institutions to use the non-medical service income directly for the improvement of medical and health care conditions (referring to the part of the medical institutions to improve medical and health care conditions on the basis of the original medical and health care conditions). For non-profit medical organizations that use their non-medical service income directly to improve medical and health conditions (meaning that the medical organizations make improvements on the basis of the original medical and health conditions, such as expanding the facade, purchasing additional equipment, etc.), the taxable income can be deducted after examination and approval by the tax authorities and the balance can be subject to the enterprise income tax.
Non-profit medical institutions are exempted from VAT on their own preparations (tablets, injections, aerosols, suppositories, pills, tinctures, etc.), while the rest of the taxes are still payable in accordance with the regulations.
The pharmacies of non-profit medical institutions are separated into independent pharmaceutical retail enterprises, which shall pay all kinds of taxes according to the regulations, including value-added tax (VAT), enterprise income tax and related surcharges and funds.
Property, land, vehicles and vessels used by non-profit medical institutions for their own purposes are exempted from property tax, urban land use tax and vehicle and vessel use tax.
Non-profit medical and healthcare institutions that receive income that meets the conditions set forth in the tax incentives shall, from the date of obtaining practice registration, submit a written application to the competent local tax authority together with the declaration materials. Only after examination and approval by the competent tax authorities can they enjoy the tax reduction care. The declaration materials include:
1. A copy of business license and a copy of tax registration certificate;
2. A copy of license for medical institutions;
3. A statistical table of existing equipment before obtaining the license;
4. A table of newly acquired equipment after obtaining the license, with purchase invoices;
5. Approval form for tax exemption and reduction.
6.