Tax incentives for the medical industry

In order to implement the "General Office of the State Council forwarded to the State Council Reform Office and other departments on the reform of the town's medical and health system of the guiding opinions of the notice" (State Office of the State Council [2000] No. 16), to promote the development of China's health care industry, approved by the State Council, the medical and health care institutions related to the tax policies are notified as follows:

First, on the non-profit health care institutions of the tax policy

(A) Non-profit medical institutions in accordance with the prices set by the State to obtain medical services income, exempt from taxation. Not in accordance with the state price of medical services shall not enjoy this policy.

Medical services refers to the medical service institutions to patients for examination, 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 and meals related to the provision of these services (hereinafter referred to as the same).

(ii) non-profit medical institutions engaged in non-medical services income, such as rental income, property transfer income, training income, foreign investment income, etc. should be in accordance with the provisions of the tax levied. Non-profit medical institutions will obtain non-medical services income, directly for the improvement of medical and health service conditions of the part of the tax department can be approved by the tax department to deduct its taxable income, the balance of the enterprise income tax.

(d) The pharmacies of non-profit medical institutions are separated into independent drug retailing enterprises, which shall be subject to taxes in accordance with regulations.

(5) The property, land, vehicles and vessels used by non-profit medical institutions are exempted from property tax, urban land use tax and vehicle and vessel use tax.

II. Tax policy on for-profit medical institutions

(a) The income of for-profit medical institutions, in accordance with the provisions of the tax levied. However, in order to support the development of for-profit medical institutions, the income obtained by for-profit medical institutions, directly for the improvement of medical and health conditions, from the date of registration of practice, the following concessions will be given within three years: exemption from business tax on medical service income; exemption from value-added tax on preparations produced for their own use; exemption from property tax, urban land-use tax and vehicle and vessel use tax on property, land and vessels used by the for-profit medical institutions. The tax will be resumed after the expiration of the three-year tax exemption period.

(2) The separation of the pharmacy of the for-profit medical institutions into an independent pharmaceutical retail enterprises, should be in accordance with the provisions of the tax levied.

Third, on the disease control institutions and maternal and child health institutions and other health institutions of the tax policy

(a) of disease control institutions and maternal and child health institutions and other health institutions in accordance with the state price of health services (including vaccination and transfer, sales income), exempted from all taxes. Income from health services not obtained in accordance with the prices set by the State shall not be eligible for this policy. Disease control agencies and maternal and child health care and other health institutions to obtain other operating income such as directly for the improvement of health service conditions of the health institutions, the tax authorities may be approved by the tax deduction of its taxable income, the balance of the enterprise income tax.

(ii) health institutions such as disease control organizations and maternal and child health institutions for their own use of property, land, vehicles and boats, exempted from property tax, urban land use tax and vehicle and vessel use tax.

Medical institutions need to declare their nature in writing to the competent administrative department of health, in accordance with the "Regulations for the Administration of Medical Institutions" for the approval of the establishment and registration, and by the acceptance of its registration of the health administrative department approved, in the practice of registration in the indication of "non-profit medical institutions" and "for-profit". Medical institutions".

These medical institutions include: hospitals of all levels and types, outpatient clinics (clinics), community health service centers (stations), emergency centers (stations), urban and rural health centers, nursing homes (nursing homes), sanatoriums, clinical testing centers and so on. The above disease control, maternal and child health care and other health institutions include: health epidemic prevention stations (disease control centers) organized by the government and relevant departments at all levels, a variety of specialized disease prevention and treatment stations (institutes), organized by the government at all levels of maternal and child health care (stations), maternal and child health care institutions, child health care institutions, etc., and blood stations organized by the government at all levels (blood centers).