What are the preferential policies on taxation for private non-enterprises
Non-profit medical institutions are exempted from all taxes on the income from medical services obtained in accordance with the prices stipulated by the state, and non-profit medical institutions are taxed on the income from non-medical services in accordance with the regulations; however, the portion of their income directly used for improving the conditions of medical and health care services can be deducted from their taxable income upon examination and approval of the tax authorities, and the balance of the Enterprise income tax is levied on the balance.
Profit-making medical institutions are exempted from business tax for three years from the date of obtaining practice registration on medical service income directly used for improving medical and health conditions.
Income derived from the transfer of technological achievements, technological development, and related technological consulting and technological services is exempted from business tax. Private non-enterprise units are exempted from enterprise income tax on the portion of their income from technology transfer not exceeding 5 million yuan or less; the portion exceeding 5 million yuan is subject to a 50% reduction in enterprise income tax.
Enterprise income tax is exempted for projects engaged in agriculture, forestry, animal husbandry and fishery services, such as agricultural technology promotion, agricultural machinery operation and maintenance.
If you are engaged in the tertiary industry, you shall enjoy the tax reduction and exemption preferential policies stipulated by the state.
Other projects that are entitled to tax reductions or exemptions in accordance with the provisions of the Tax Law shall be subject to its provisions.
According to the Circular of the Ministry of Finance and the State Administration of Taxation on Issues Concerning the Tax-Exempt Income of Non-Profit Organizations for Enterprise Income Tax Purposes (Cai Shui [2009] No. 122), the following incomes of non-profit organizations are tax-exempt incomes:
(i) incomes from accepting donations from other units or individuals;
(ii) incomes other than those provided for in the Chinese People's **** and State Enterprise Income Tax Laws (b) Income from government subsidies other than financial appropriations as stipulated in Article 7 of the CITL, but excluding income derived from the purchase of services by the government;
(c) Income from membership fees collected in accordance with the regulations of the civil affairs and finance departments at or above the provincial level;
(d) Interest income from bank deposits derived from nontaxable and tax-exempted income;
(e) Other incomes as stipulated by the Ministry of Finance and the State Administration of Taxation.
Therefore, if a taxpayer belongs to a non-profit organization, it is exempted from enterprise income tax if the income it receives falls within the scope of the above exempted income.
Expanded Information:
Private non-enterprise unit is a new concept. It is in 1996 the central government and the State Council leadership for the previous concept of private institutions to make amendments. That is, the institutions are organized by the state, and the private sector should no longer be called institutions.
In October 1998, the State Council promulgated the Interim Regulations on the Registration and Administration of Privately-run Non-Enterprise Units, which defines a privately-run non-enterprise unit as a social organization engaged in non-profit social service activities organized by an enterprise, institution, social organization, other social forces, and individual citizens using non-state assets.
Enterprise income tax is a tax levied on the production and operation income and other income of domestic enterprises and business units in China. The scope of taxpayers is larger than that of corporate income tax. The taxpayers of enterprise income tax are all the domestic enterprises or other organizations within the territory of the People's Republic of China that implement independent economic accounting, including the following six categories:
(1) state-owned enterprises; (2) collective enterprises; (3) private enterprises; (4) joint ventures; (5) shareholding enterprises; and (6) other organizations with production and operation incomes and other incomes.
The object of taxation of enterprise income tax is the income obtained by taxpayers. It includes income from the sale of goods, income from the provision of labor services, income from the transfer of property, dividend and bonus income, interest income, rental income, royalty income, income from accepting donations and other income.
Enterprise income tax is an income tax levied on enterprises (resident enterprises and non-resident enterprises) and other income-earning organizations in the People's Republic of China for their production and operation income. As an enterprise income taxpayer, it shall pay enterprise income tax in accordance with the Enterprise Income Tax Law of the People's Republic of China. However, sole proprietorships and partnerships are excluded.
Baidu Encyclopedia: Private Non-Enterprise Units
Baidu Encyclopedia: Enterprise Income Tax