Second, the tax policy of private hospitals
The government encourages private capital to enter the field of health care, in order to gradually break the monopoly situation, to realize the pattern of "public ownership as the main body, the implementation of a variety of forms of running a hospital". This is a direction of the medical and health system reform. However, China Hospital Management Association of private hospital management branch secretary-general Zhao Chun pointed out that, although the state said to encourage the development of private hospitals, but the relevant supporting measures are insufficient. Private hospitals in the medical market policy mismatch is first manifested in the tax policy. The mismatch and non-uniformity of tax policies have greatly affected the survival and development of private hospitals. The health department defines private hospitals as for-profit hospitals, and the tax department has gradually begun to tax for-profit hospitals. Since private hospitals are basically a new thing, the policies of the health department and the tax department on the nature of taxation are not unified. If enterprises collect taxes, hospitals have to pay 5.5% of their gross income in addition to 16 kinds of taxes, which is almost unaffordable for hospitals. With regard to the tax exemption for for-profit hospitals, there are also various policies around the world. in the early 2000s, in order to encourage the development of private hospitals, the state introduced relevant tax incentives. Private hospitals will be given the following preferences within 3 years from the date of obtaining the license: exemption of business tax on medical services; exemption of value-added tax on self-produced preparations for self-use; exemption of property tax, urban land use tax and vehicle and vessel use tax on properties, land and vessels used by for-profit medical institutions; and resumption of taxation after the expiry of the 3-year tax exemption period. However, some local tax authorities believe that the tax should be paid from the date of classification and registration, and some places have to pay the tax from the date of the establishment of the hospital. According to this policy, a hospital that has been in business for 10 years will be exempted from tax for 3 years and will have to pay tax for 7 years. Millions or even tens of millions of dollars in taxes that hospitals can not collect taxes. Zhao Chun also admitted that many private hospitals do not operate immediately after obtaining license registration, and often take two years to operate. Therefore, private hospitals do not benefit much from the three-year tax incentives. In fact, the 2000 for-profit and non-profit healthcare reform was a failure. Public hospitals have many patients, high drug costs, high fees, forming a monopoly; but medical clinics are low-cost, low-cost drugs, thin profits. One is an aircraft carrier, one is a ship; private medical institutions are not competitive at all. Good in 2009, the Ministry of Finance, the State Administration of Taxation issued the following documents, the timely termination of the private medical institutions to collect business tax on the content, and attached 3360 "Ministry of Finance, the State Administration of Taxation on the announcement of some of the repealed and invalidated business tax normative documents notice" Cai Shui [2009] No. 61 partially repealed or invalidated documents, as well as the "Ministry of Finance, the Chinese People's Republic of China * * * and the State Administration of Taxation on the Circular of the Ministry of Finance of the People's Republic of China*** and the State Administration of Taxation of the People's Republic of China on Taxation Policies for Medical and Healthcare Institutions (Cai Shui [2000] No. 42) on business tax.Thirdly, what medical services are exempted from value-added tax by the camp reform increase
Medical services provided by medical institutions are exempted from value-added tax.1. Medical institutions refer to institutions registered under the Regulations on the Administration of Medical Institutions of the State Council (State Council Decree No. 149) and the Ministry of Health (Ministry of Health Decree No. 35), and the Medical institutions of all types and at all levels of the military and armed police forces. Specifically, these include hospitals, outpatient clinics (clinics), community health service centers (stations), first-aid centers (stations), urban and rural health centers, sanatoriums (stations), nursing homes, testing departments, health epidemic prevention stations (CDCs) and various types of professional disease prevention stations (stations), and maternity and child health-care centers (stations) held by governments at all levels: 1. 2. Medical care services as referred to in this subparagraph refer to medical care services provided in accordance with the regulations on medical care institutions at or above the local (municipal) price level, in accordance with the provisions of the Regulations on the Management of Medical Institutions. (City) price authorities in conjunction with the competent health department at the same level and other relevant departments to develop medical services guide price (including the government guide price and the supply and demand sides in accordance with the provisions of the negotiated price), for medical patients to provide medical institutions, "Medical Institutions Regulations Implementing Rules" of the services listed in the medical institutions, as well as to the community to provide health, epidemic prevention and quarantine services to the medical institutions.Four, hospitals provide medical services is not exempt from business tax?
Yes, the medical services provided by hospitals are exempt from business tax.5. Is the income from medical services of for-profit medical organizations exempt from VAT?
Free of charge. Article 1 of Annex III of the License for Medical Institutions (Cai Shui [2016] No. 36) states, "The following items are exempted from value-added tax: (7) medical services provided by medical institutions." Medical institutions are those registered under the provisions of the Circular of the Ministry of Finance and the State Administration of Taxation on the Pilot Scheme of Comprehensively Pushing Forward the Conversion of Business Tax to Value-added Tax (VAT) under the provisions of the State Council No. 149 (the State Council) and the Ministry of Health's National Code of Pricing Items for Medical Services No. 35 (Ministry of Health Decree No. 35), as well as various types of medical institutions in the military and the Armed Police Forces. Specifically, they include all kinds of hospitals, outpatient clinics (clinics), community health service centers (stations), first aid centers (stations), urban and rural health centers, sanatoriums (institutes), nursing homes and other medical institutions. Medical service organizations, refers to the medical institutions set up in accordance with no higher than the local (city) level. The above price authorities in conjunction with the health authorities at the same level and other relevant departments to develop the guide price of medical services (including the government's guide price and in accordance with the provisions of the supply and demand by the negotiation of the price, etc.) for the provision of medical care for the "national medical services price specification for the services listed in the project," as well as health care institutions to the social community to provide sanitary epidemiological and hygienic quarantine services. " The medical services listed in the "National Medical Service Price Item Specification" are divided into comprehensive medical services, laboratory diagnosis, pathology diagnosis, diagnostic imaging, clinical diagnosis, clinical physiotherapy, clinical non-surgical treatment, clinical surgical treatment, clinical auxiliary operation, traditional Chinese medicine and ethnomedical services.Sixth, the doctor opened his own small clinic should be how to pay taxes, what kind of tax? The city and the urban areas have a difference? The government tax or the local tax?
Eligible clinics are exempt from value-added tax (and surcharges) on medical services, including medicines, drugs, medical materials and appliances, ambulances, ward accommodation and catering services related to medical services. The conditions refer mainly to obtaining a Medical Institution Practice License. The tax is collected by the National Tax Bureau, the tax exemption is filed, and the tax exemption is declared on a regular basis (the tax exemption must also be declared). Individual income tax should be paid according to the production and operation income of individual industrial and commercial households, with taxable income as the basis for taxation, and a progressive tax rate of 5% to 35%. The regulations are the same in both urban and rural areas. It is collected by the local tax bureau, and the tax declaration is made on a regular basis.