Value-added tax exemption policy for medical institutions

I. According to the Circular of the Ministry of Finance and the State Administration of Taxation on the Relevant Taxation Policies of Medical and Healthcare Institutions (Cai Shui [2000] No. 42), "I. Taxation Policies on Non-Profit Medical Institutions

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(2) Income obtained by non-profit medical institutions from non-medical services, such as rental income, property transfer income, training income, foreign investment income, etc., shall be subject to various taxes in accordance with the regulations. Non-profit medical institutions will obtain non-medical services income, directly used to improve the conditions of medical and health services part of the examination and approval by the tax authorities can be deducted from their taxable income, on the balance of the enterprise income tax.

(iv) The separation of pharmacies of non-profit medical institutions into independent pharmaceutical retail enterprises shall be subject to all taxes in accordance with the regulations."

Second, according to the "Notice of the Ministry of Finance and State Administration of Taxation on Comprehensively Pushing Forward the Pilot of Changing Business Tax to Value-added Tax" (Cai Shui [2016] No. 36), it is stipulated that: "Annex 3: Provisions on the Transitional Policies for the Pilot of Changing Business Tax to Value-added Tax

I. The following items are exempted from value-added tax

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(7) Medical services provided by medical institutions.

Medical institutions, refers to the State Council's "Regulations on the Administration of Medical Institutions" (State Council Decree No. 149) and the Ministry of Health's "Regulations on the Administration of Medical Institutions Implementation Rules" (Ministry of Health Decree No. 35), the institutions that are registered and obtain the "license to practice in health care institutions", as well as the military, the Armed Police Force, all levels of various types of medical institutions. Specifically, these include: hospitals at all levels, outpatient clinics (clinics), community health service centers (stations), first aid centers (stations), urban and rural health centers, nursing homes (institutions), nursing homes, clinical testing centers, government and relevant departments at all levels organized by the Health Epidemiological Prevention Station (Center for Disease Control), a variety of specialized disease prevention and treatment stations (institutes), government at all levels organized by the Maternal and Child Health Care (stations), maternal and child health institutions, child care institutions, blood stations at all levels organized by the government, and blood stations. Institutions, blood stations (blood centers) and other medical institutions organized by the government at all levels.

The medical services referred to in this item refers to the medical institutions in accordance with the price not higher than the price of medical services set by the competent department of price at or above the local (municipal) level, in conjunction with the competent department of health at the same level and other relevant departments (including the government-guided price and in accordance with the provisions of the price determined by the negotiation between supply and demand, etc.) for the provision of medical treatment for the "National Medical Services Price Item Specification" of the services listed, as well as the provision of health care institutions to the community to provide sanitary and epidemiological, health quarantine, and health care services. provide services of sanitary epidemic prevention and sanitary quarantine."