On Nov. 1 and 24, 2014, the State Ministry of Finance and National Development and Reform Commission and the Ministry of Commerce and Ministry of Civil Affairs issued the Notice Concerning Reduction or Exemption of Administrative Fees for Elderly Nursing Houses and Medical Institutions (the Notice) and the Announcement Relating to the Encouragement of Foreign Investors to Establish For-Profit Elderly Care Institutions to Engage in Elderly Care Services in China (the Announcement) respectively. The Announcement becomes effective upon release and the Notice became effective Jan. 1, 2015.
The Notice provides that (i) the administrative fees incurred in the course of the construction and establishment of non-profit elderly nursing houses and medical institutions (the Set Up Fees) will be full exempted, and (ii) the Set Up Fees for for-profit elderly nursing houses and medical institutions will be reduced by 50 percent.
The Set Up Fees include:
- The land reclamation fee, idle land fee, cultivated land reclamation fee, and land registration fee charged by PRC Land of Resource Department;
- The property registration fee and termite protection fee charged by Ministry of Housing and Urban- Rural Development;
- The construction fee for restructuring the air defense basement charged by Air Defense Department; and
- Other fees charged by various authorities.
The Notice further requires relevant authorities to publish details of the reduction and exemption of the administrative fees in connection with elderly nursing houses and medical institutions.
The Announcement encourages foreign investors to establish for-profit elderly care institutions. Specifically, foreign investors are encouraged to:
- Establish for-profit elderly care institutions in China on their own or jointly with Chinese companies, enterprises and other economic organizations; and
- Participate in the enterprise reform of public elderly care institutions specialized in the provision of for-profit services to the public, paying attention to issues including the protection of employee rights and maintenance and appreciation of state-owned asset value.
Furthermore, under the Announcement, Foreign-invested for-profit elderly care institutions will enjoy the same preferential tax policies and reduction or exemption of administrative fees (including but not limited to the Set Up Fees) enjoyed by domestic-invested and for-profit elderly care institutions.
The Notice and the Announcement show that China is promoting the development of elderly care industry and is opening up the social service industry.
- Notice Concerning Reduction or Exemption of Administrative Fee for Elder Nursing House and Medical Institution
- Issuing authority: State Ministry of Finance and National Development and Reform Commission
- Date of issuance: Nov. 11, 2014 / Effective date: Jan. 1, 2015
- Announcement Encouraging Foreign Investors to Establish For-profit Elderly Care Institutions in China
- Issuing authority: The Ministry of Commerce and Ministry of Civil Affairs
- Date of issuance: November 24, 2014 / Effective date: November 24, 2014