Do non-profit businesses get tax breaks?

Phi lợi nhuận

Vingroup Corporation has announced the conversion of Vinmec and Vinschool systems into a non-profit model. With the non-profit making of two fast-growing brands, promising sustainable profits, promising 100% of the profits for a tax-exempt society?

Does the business operating under the “non-profit” model have tax exemptions? Internet photos

Non-profit does not mean no profit

Non-profit, English is written “non-for-profit” or “not-for-profit” or “non-for-profit” is correctly understood as “not distributing profits to owners , shareholders “whose profits are reused for the purpose of the organization. Any organization that meets the above criteria is considered a nonprofit organization.

Nonprofit is the business of not distributing its surplus funds to individuals or shareholders that use these funds to fund its objectives. Being considered a non-profit organization depends on how well they behave with profit, not whether they are profitable.

Many people understand “non-profit” is not profitable. This is not true, because there are many nonprofit organizations, but their annual profits are very high. In many countries, to be recognized as a nonprofit organization, it is necessary to follow a clear procedure in accordance with local law or international practice. In Vietnam, non-profit enterprises are established under the Enterprise Law and operate as normal businesses, but commit to use at least 51% of their annual gross return for reinvestment in pursuit of social objectives. , environment as registered.

Vingroup Corporation has announced the conversion of Vinmec and Vinschool into a non-profit model, committed to 100% profitability for society.

Vingroup Group has committed not to withdraw more than VND4,000 billion invested so far to build the Vinmec and Vinschool system nationwide but also committed to spend 100% of the proceeds from Vinmec and Vinschool to use it. For reinvestment in order to continuously improve and develop the system, in particular investment in human resources development, upgrading of facilities, equipment, scholarships and research funding. science, technology transfer, strengthening cooperation, international links …

This does not mean that people, who need to use high quality services in this system will be cheap or free. Eligible for high quality services without having to spend extra money.

Enterprises operating in this form shall enjoy tax reduction

The announcement of converting the Vinmec and Vinschool systems into a “non-profit” model is very welcome. Because of the current conditions, the State can not afford to provide high quality services to the whole society in a short time. There are still many difficulties, difficulties and challenges in people’s health care.

The socialization has many modern equipment, the application of advanced science and technology in the diagnosis and treatment of diseases such as CT, magnetic resonance, 4D, 5D ultrasound, Phacor surgery, open heart surgery , in vitro fertilization, etc., are provided to provide quality health care services to a part of the population, with conditions for payment. To reduce the burden on public hospitals and to create competitive pressure for state health care facilities to improve the quality of health care services.

Please refer to some prices of services of Vinmec see the hospital room (standard grade) will be 3 million per day / person only includes bed price: 1.5 million, medical expenses 1.5 million copper; Delivery services usually cost up to 39,500,000 / 1ca.

In the field of education, after 3 years of development, Vinschool has become the largest educational system in the country with 13,000 students enjoying excellent educational conditions with a comprehensive and modern educational philosophy. After 4 years of operation, the Vinmec Health Care System has five facilities in Hanoi, Ho Chi Minh City, Nha Trang, Phu Quoc, Ha Long and one building in Da Nang. 10 hospitals and 1 medical university nationwide by 2020

So the income of people in this system such as teachers, doctors is higher than the average salary in the same position in. Therefore, the state will not accept any of the following reasons: Because of the high cost, the profit of the school is reduced, the profit of the hospital is due to operate in the form of non-profit, or negative (not pay taxes by reporting loss) or very little to no need to pay taxes.

The State encourages the socialization of education and especially the socialization of the health sector. In addition, there must be a policy mechanism to both stimulate and monitor the financial activities of the enterprise. in the form of non-profit.

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