If the post-natal care provided by the post-natal care institutions set up according to the Standards for Establishing Nursing Institutions include daily living services, in accordance with the Order of Taiwan Finance and Taxation No. 10500709640 issued by the Ministry of Finance of the Republic of China (Taiwan) on December 21, 2016, the non-medical daily living service costs previously exempt from the scope of business tax, since the date of issuing of the Order, should apply for business registration and file for business tax in accordance with the law.

The National Taxation Bureau of the Northern Area, Ministry of Finance of the Republic of China (Taiwan) explains that postpartum care services provided by post-natal care institutions are part of medical service, including nursing fees (nursing assessment, nursing instruction and disposal, etc.), medical treatment fees and consultation fees, which are exempt from business tax in accordance with Article 8, Paragraph 1, Subparagraph 3 of the Value-added and Non-value-added Business Tax Act. However, the part of “daily living service costs”, which covers lodging, infant formula, diapers, cleaning hygiene products, general food and drink, etc., beginning from December 21, 2016, should apply for business registration and file for business tax in accordance with the law.

The National Taxation Bureau urges that, based on the ideal of filing tax for the greater good, post-natal care institutions should self-inspect. If the charge of “daily living service costs” has yet to complete business registration, the post-natal care institutions should at once apply for business registration and file for business tax at the tax collection office of the jurisdiction before June 30, 2017, to be exempt from punishment. If the deadline has passed and the overdue has been discovered by the competent tax authorities, in addition to paying the overdue tax, the post-natal care institutions will be punished with a fine in accordance with the law.