The reason is because:
According to the Enterprise Income Tax Law of the People's Republic of China and its implementing regulations, enterprises and income-earning organizations are taxpayers of enterprise income tax, including resident enterprises and non-resident enterprises, among which resident enterprises include enterprises, institutions, social organizations and other income-earning organizations established in China according to China laws and administrative regulations. That is to say, all kinds of enterprises, institutions, social organizations and other income-earning organizations (including all kinds of educational and medical institutions, all kinds of associations, chambers of commerce, foundations, etc.) in China have the obligation to pay corporate income tax, so they should go through tax registration and declare and pay corporate income tax on time.
In order to support the development of various non-profit organizations, the Enterprise Income Tax Law of the People's Republic of China stipulates that the income of qualified non-profit organizations is tax-free income. According to the Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Relevant Issues Concerning the Identification and Management of Tax Exemption Qualifications of Non-profit Organizations (Caishui [20 14] 13), all kinds of non-profit organizations need to be identified by the accreditation bodies and obtain the tax exemption qualifications of non-profit organizations before they can go through the tax reduction and exemption procedures and enjoy preferential policies.
According to the provisions of the document Caishui [20 14] 13, institutions, social organizations, foundations, private non-enterprise units, places for religious activities and other organizations recognized by the Ministry of Finance and State Taxation Administration of The People's Republic of China, which are established or registered in accordance with relevant national laws and regulations, can obtain tax exemption status as long as they meet nine conditions at the same time and are recognized.