I want to know what types of hospital taxes there are.

Hello. I am a tax law specialist attorney at Daeryun Law Firm.

The types of hospital taxes are as follows.

1. Income tax (Comprehensive income tax)
Comprehensive income tax must be filed and paid on the annual net profit generated by the hospital.

Net profit is calculated as 'revenue – necessary expenses (labor costs, rent, material costs, etc.).'

If revenue is large or the proportion of necessary expenses is low, a high tax rate may be applied due to a higher tax bracket.

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

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

If the distinction between taxable and non-taxable is unclear, it can become subject to additional collection in tax investigations, so separate accounting must be done for each item.

If there is taxable revenue, VAT filing is required, and management of issuing and receiving tax invoices is also important.

3. Withholding tax
Withholding tax on labor costs must be paid monthly. Since payment statements must also be submitted, thorough review is required.

Failure to issue cash receipts or double bookkeeping can be subject to criminal punishment in tax investigations.

Hospital taxes incurred while operating a hospital are often complexly intertwined beyond simple medical revenue.

In particular, the tax amount payable can vary greatly depending on the distinction between exempt and taxable items, income tax saving methods, and employee-related tax processing.

Visit Daeryun Law Firm and receive assistance from a tax accountant with extensive hospital tax processing experience and a tax law specialist attorney to establish a hospital-specific tax strategy and systematically prepare ledger management and tax reporting from the beginning. This is the key to safe and efficient hospital operation.

If you need legal assistance regarding hospital taxes, please request a consultation right away.