1) Medical institutions are divided into "non-profit medical institutions" and "for-profit medical institutions". For-profit medical institutions". This is a medical institution in the practice of registration, written to the competent administrative department of health to declare its nature, in accordance with the "Regulations on the Administration of Medical Institutions" for the establishment of the approval and registration, and approved by the administrative department of health to accept the registration.
(2) For "non-profit medical institutions", not all income earned is exempt from tax. According to the Ministry of Finance, State Administration of Taxation on medical and health institutions on the tax policy of the notice of the Ministry of Finance, State Administration of Taxation on the tax policy of the first: non-profit medical institutions in accordance with the state price of medical services, exempted from taxation; non-profit medical institutions of their own preparations, exempted from value-added tax; non-profit medical institutions of their own use of real estate, land, cars and boats, exempted from property tax, land use tax cars and boats, exempted from the tax. The property, land, vehicles and vessels used by non-profit medical institutions are exempted from property tax, land use tax and vehicle and vessel use tax. However, all taxes shall be levied in accordance with the regulations on the income from medical services not obtained at the prices stipulated by the state, as well as the income from non-medical services, such as rental income, property transfer income, training income, and income from foreign investment. As for non-profit medical institutions, the part of non-medical service income obtained from non-medical service enterprises, which is directly used to improve the conditions of medical and health services, shall be credited against its taxable income upon the approval of the tax authorities, and enterprise income tax shall be levied on the balance thereof. If the pharmacy of a non-profit medical institution is separated into an independent pharmaceutical retail enterprise, all taxes shall be levied in accordance with the regulations.
(3) According to Article 2 of the Circular of the Ministry of Finance and the State Administration of Taxation on Relevant Taxation Policies for Medical and Healthcare Institutions, No. 42 of Cai Shui [2000], the revenues obtained by for-profit medical institutions shall be subject to various taxes in accordance with the regulations. However, in order to support the development of for-profit medical institutions, the following preferences shall be granted to the revenues obtained by for-profit medical institutions, which are directly used to improve the conditions of medical and healthcare services, for a period of 3 years from the date of obtaining the registration of practice; the revenues obtained from medical services shall be exempted from the business tax; preparations produced for their own use shall be exempted from the value-added tax; and the properties, lands, vehicles and vessels used for their own use shall be exempted from the real estate tax, the land-use tax, the vehicle and vessel-use tax for 3 years. Taxation will be resumed after the expiration of the 3-year tax exemption period. So, for your for-profit medical institution, it has been more than 3 years since you obtained the license registration, so you should pay all the taxes according to the regulations.