National Assembly delegates propose tax exemption for drugs used for inpatients

National Assembly Deputy Nguyen Lan Hieu proposed tax exemption for drugs used for inpatient treatment. (Photo: Pham Thang)

On the morning of May 12, at the discussion session on the draft Law on Corporate Income Tax (amended), National Assembly Deputy Nguyen Lan Hieu (Binh Dinh Delegation) gave his opinion regarding the collection of tax on medical examination and treatment services...

Regarding the collection of 2% of total revenue from medical examination and treatment services, delegate Nguyen Lan Hieu said that some National Assembly deputies explained that tax is only levied on joint venture, association, and on-demand medical examination and treatment services... But in reality, the tax authority bases on the word "service" which in the health sector has the concept of revenue from public career services.

Therefore, Mr. Hieu proposed to supplement to have a clearer and more rigorous basis. Specifically: Public service units are not subject to corporate income tax on medical examination and treatment service revenue excluding labor costs, direct costs, depreciation costs of medical equipment, fixed assets, and management costs.

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The above proposal, according to delegate Nguyen Lan Hieu, has two legitimate reasons:

Firstly, the current service price, which operates according to the functions and tasks assigned by the state, only takes into account 2/4 of the factors. This price is not enough to cover the arising costs, so there is no profit.

Second, Clause 2, Article 11, Clause 2, Article 15 of Decree 60/2021 of the Government stipulates: Revenue from production and business activities; joint ventures and associations with organizations and individuals in accordance with the provisions of law and approved by competent authorities in accordance with the functions and tasks of public service units. Meanwhile, the Ministry of Health regulates medical examination and treatment prices, and revenue from public service activities is not a joint venture or association service.

In addition, delegate Nguyen Lan Hieu also proposed to add regulations that income from funding and aid sources including money and materials used for the right purposes foreducational , medical, scientific research, cultural and artistic, charitable, humanitarian, social activities, etc. is not subject to corporate income tax.

"This will help many hospitals and medical facilities that are having difficulty purchasing equipment and repairing facilities; at the same time, it will encourage many domestic and foreign philanthropists to increase their support for Vietnam's healthcare system. These regulations will clarify the transparency and consistency in the tax system, reducing legal risks for social activities," said delegate Nguyen Lan Hieu.

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In addition, delegate Nguyen Lan Hieu also proposed inadequacies in corporate income tax policies for services in the medical field and support services in the medical field.

Currently, in addition to providing medical examination and treatment services, hospitals and medical facilities provide support services to improve the effectiveness of medical examination and treatment such as patient care and transportation services, medical record copies, laundry, meals, etc. However, the Law currently only provides incentives for medical examination and treatment services but does not clearly regulate support services.

How will these services be regulated to ensure fairness in tax policy, while reducing costs for patients when receiving medical treatment? Therefore, the National Assembly member proposed to add specific regulations on the scope of services and the calculation of value added tax and corporate income tax.

According to Mr. Hieu, another problem is corporate income tax on revenues from drugs and inpatient medical services. The Ministry of Health stipulates that medical facilities are not allowed to add additional costs to the winning bid price of drugs, including circulation costs and management costs. Circular 15 of the Ministry of Health also stipulates that drug prices cannot be higher than the approved winning bid price.

The above causes medical facilities to incur tax costs, especially medical facilities that pay tax by the direct revenue method, this amount will be included in the patient's pocket. Therefore, delegate Nguyen Lan Hieu proposed to add a tax exemption regulation for drugs used by patients for inpatient treatment.

Delegate Nguyen Lan Hieu also proposed that the Law on Corporate Income Tax (amended) should take effect from October 1, 2025.

Source: https://baoquocte.vn/dai-bieu-quoc-hoi-de-nghi-mien-thue-thuoc-su-dung-cho-benh-nhan-dieu-tri-noi-tru-314151.html