"II. Tax Policies for For-Profit Medical Institutions
(1) The income earned by for-profit medical institutions is taxed in accordance with the provisions of the tax. (a) The income obtained by for-profit medical institutions shall be subject to all taxes in accordance with the regulations. However, in order to support the development of for-profit medical institutions, the following concessions shall be granted to the income obtained by for-profit medical institutions, which is directly used for the improvement of medical and healthcare conditions, for a period of three years from the date of obtaining the registration of practice: the income from medical services shall be exempted from the business tax; the preparations for self-production and self-consumption shall be exempted from the value-added tax; and the real estate, land, vehicles and vessels for self-consumption by for-profit medical institutions shall be exempted from the property tax, the urban land use tax and the vehicle and vessel use tax for a period of three years. The tax will be resumed after the expiration of the three-year tax exemption period.
(2) The pharmacy of a for-profit medical institution shall be separated into an independent pharmaceutical retail enterprise, and shall be subject to all taxes according to the regulations".
In 2009, with the announcement and implementation of the new Provisional Regulations on Business Tax, the Ministry of Finance and the State Administration of Taxation issued the Notice on the Publication of a Number of Repealed and Invalidated Normative Documents on Business Tax (Cai Shui [2009] No. 61), which cleans up the relevant normative documents on business tax, in which Cai Shui [2000] No. 42 is also among the cleansing, and the specific cleansing content:
Part of the repealed or invalid documents:
9. Ministry of Finance, State Administration of Taxation on the medical and health care institutions on the tax policy of the notice (Cai Shui [2000] No. 42) related to the business tax provisions,
this can be seen, Cai Shui [2009] No. 61 abolished the Cai Shui [2000] No. 42 article about exemption from the tax on income from medical services obtained by profit-making health care institutions. The article of Cai Shui [2000] No. 42 on the exemption of business tax on medical service income obtained by profit-making medical institutions was repealed.
However, according to the Provisional Regulations on Business Tax (State Council Decree No. 480):
The following items are exempted from business tax:
(3) medical services provided by hospitals, clinics and other medical institutions;
So, the tax preferential policy of exempting from business tax the income from medical services obtained by medical and healthcare institutions, including profit-making medical institutions, is still valid. tax incentives, is still valid.