Hong Kong Legislates For Health Insurance Tax Relief
by Mary Swire, Lowtax.net, Hong Kong
22 May, 2018
Hong Kong's Government has gazetted a bill to provide a tax incentive for the take up of private health insurance, as announced in the 2018-19 Budget.
The tax deduction applies to the purchase of certified plans under the Voluntary Health Insurance Scheme (VHIS). The VHIS is a new scheme, announced on March 1, 2018, that encourages Hong Kong residents to buy private health insurance, to relieve pressure on the public healthcare system.
The bill allows a tax deduction for premiums paid by a person for himself/herself and the taxpayer's spouse and children, grandparents, parents, and siblings. The deduction ceiling is HKD8,000 (USD1,019) per insured person per year.
To ensure the tax incentive is provided to people who have a nexus to Hong Kong, an insured person, or the parent of an insured person who is under 11 years old and does not hold a Hong Kong Identity Card, should be a Hong Kong Identity Card holder.
The bill will be tabled in Hong Kong's parliament for scrutiny on May 23, 2018.
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