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醫療財團法人的租稅優惠與社區公益服務
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The Relationship between “Tax-Exemption” and “Community
Benefit Service” of Not-for-Profit Hospitals
1. Purpose/Objective
Non-profit hospitals in many countries play the role of complementing government’s
functions through the provision of uncompensated care services, whereas many countries
generally offer tax benefits to encourage non-profit hospitals to participate in medical-
related public services. Tax benefit is a kind of tax expenditure from the country, while
community benefit service is implemented in the society; these two elements should have
significantly positive correlation. In this paper, the effect of tax-exempt interests was
examined with Taiwan’s non-profit hospitals' data.
To encourage non-profit hospitals to engage in public social services, the Taiwanese
government developed preferential provisions for non-profit hospitals in tax laws.
However, the government also set the non-profit hospitals’ obligations and the minimum
level of engagement in community benefit services in Article 46 of Medical Care Act.
There are several features in the paper. Firstly, it is the first research in Taiwan to
estimate the tax expenditure derived from tax benefits for non-profit hospitals. The tax
benefits include business income tax, land value tax, and donation deduction benefits. Tax
exemption was examined more comprehensively here. Secondly, the annual cash
expenditure rather than annual expense was used to measure the resources which were
actually put into community benefit services by non-profit hospitals. Thirdly, the
relationship between tax-exempt interest and community benefit service expenditure in
non-profit hospitals was explored.
2. Design/Methodology/Approach
In this paper, the unbalanced panel data of totally 213 observations in 43 non-profit
hospitals in Taiwan during 2006 – 2010 were adopted. The fixed effect model and the
instrumental variable (IV) model were applied to conduct regression analysis in order to
review the connection, which controls both hospital and environmental characteristics,
Chih-Min Liang
, Associate Professor, Department of Public Finance and Tax Administration, National
Taipei University of Business
Jenn-Shyong Kuo
, Professor, Department of Accountancy, National Taipei University
I-Huei Li
, Revenue Officer, Xinyi Branch, National Taxation Bureau of Taipei, Ministry of Finance
Yi-Cheng Ho
, Professor, Department of Public Finance, National Chengchi University