(2) Income derived from non-medical services by non-profit medical institutions, such as rental income, property transfer income, training income, foreign investment income, etc. shall be subject to all taxes in accordance with the regulations.
(3) The value-added tax shall be exempted on preparations produced by non-profit medical institutions for their own use.
(4) The separation of pharmacies of non-profit medical institutions into independent drug retail enterprises shall be subject to all taxes in accordance with the regulations."
Secondly, according to the Circular of the Ministry of Finance and the State Administration of Taxation on Comprehensively Pushing Forward the Pilot Program of Changing Business Tax to Value-added Tax (Cai Shui [2016] No. 36), "Annex 3: Provisions on Transitional Policies for the Pilot Program of Changing Business Tax to Value-added Tax
I.The Following Items are Exempted from the Value-added Tax
(vii) Medical services provided by medical institutions. services.
Medical institutions refer to those institutions that have obtained the License to Practice in Medical Institutions upon registration in accordance with the provisions of the State Council's Regulations on the Administration of Medical Institutions (Decree No. 149 of the State Council) and the Ministry of Health's Implementing Rules for the Regulations on the Administration of Medical Institutions (Decree No. 35 of the Ministry of Health), as well as various types of medical institutions of various levels of the military and the Armed Police Forces. Specifically include: hospitals of all types 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 (Disease Control Centers), a variety of specialized disease prevention and treatment stations (institutions), government at all levels organized by the Maternal and Child Health Care (station), maternal and child health institutions, child care institutions, blood stations at all levels organized by the government, and the 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 subparagraph mean that medical institutions provide the services listed in the National Norms for Medical Service Prices for patients in accordance with the guiding prices for medical services (including government-guided prices and prices negotiated between supply and demand in accordance with the regulations, etc.) set by the competent department of price at or above the prefectural (municipal) level in conjunction with the competent department of health at the same level and other relevant departments, as well as the provision of sanitary and epidemic prevention, hygiene and sanitation services to the community by medical institutions, and the provision of health services to the community by the government at all levels. provide services of sanitary epidemic prevention and sanitary quarantine to the society."
Thirdly, according to the document ''Notice of the Ministry of Finance and the State Administration of Taxation on Clarifying the Policies of Nursing Institutions on Exemption from Value-added Tax and Other Policies'' (Cai Shui [2019] No. 20) and ''Announcement of the Ministry of Finance and the State Administration of Taxation on the Extension of the Period of Implementation of Certain Preferential Tax Policies'' (Announcement of the Ministry of Finance and the State Administration of Taxation No. 6 of 2021)
From February 1, 2019 to December 2023 From February 1, 2019 to December 31, 2023, medical institutions accepting commissions from other medical institutions to provide the services listed in the National Specification for Medical Service Prices Items at prices not higher than the guideline prices for medical services set by the competent price authorities at or above the prefectural (municipal) level in conjunction with the competent health authorities at the same level and other relevant authorities (including government-guideline prices and prices determined by negotiation between supplying and demanding parties in accordance with the regulations, etc.), are subject to the provisions of the Provisions on Pilot Transitional Policies" (issued by Cai Shui [2016] No. 36), the exemption from value-added tax policy stipulated in Article 1 (7).