I would like to know what types of hospital taxes there are.

Hello. This is a tax attorney at Daeryun Law LLC.

The types of hospital taxes are as follows.

1. Income Tax (Global Income Tax)
You must report and pay global income tax on the annual net profit generated by the hospital.

Net profit is calculated as 'revenue minus necessary expenses such as labor costs, rent, and material costs.'

If revenue is large or the proportion of necessary expenses is low, a higher tax rate may apply as the tax base moves into a higher bracket.

2. Value-Added Tax
General medical treatment and treatment covered by health insurance are exempt from value-added tax.

However, cosmetic procedures, plastic surgery, health checkups, non-covered injections, cosmetics sales, and nutritional supplement sales are subject to taxation.

If the distinction between taxable and tax-exempt items is unclear, they may become subject to additional collection during a tax investigation, so you must account for each item separately.

If you have taxable revenue, you must file a value-added tax return, and managing the issuance and receipt of tax invoices is also important.

3. Withholding Tax
Withholding tax on labor costs must be paid every month, and because a payment statement must also be submitted, thorough review is necessary.

Failure to issue cash receipts or the keeping of double books may become subject to criminal punishment during a tax investigation.

Hospital taxes arising from operating a hospital are often complexly intertwined beyond simple treatment income.

In particular, the amount of tax payable can vary significantly depending on the distinction between tax-exempt and taxable items, income tax savings strategies, and the handling of employee-related tax matters.

Consulting Daeryun Law LLC and receiving assistance from a tax accountant and a tax attorney experienced in handling hospital taxes to establish a tax strategy tailored to your hospital, and systematically preparing your bookkeeping and tax filings from the outset, is key to safe and efficient hospital operation.

If you need legal assistance regarding hospital taxes, you are welcome to request a consultation.