Tax Deduction Frequently Asked Questions
Q1. What is the purpose of this letter - Annual Summary of Voluntary Health Insurance Scheme (VHIS) Certified Plan?
Q2. When will the tax deduction under VHIS be effective?
Q3. How can an insurance policy qualify for claiming tax deduction under VHIS?
Q4. What is the definition of “specified relatives”?
Q5. Why is the amount of total premium paid different from the exact amount of tax deduction?
Q6. What is the exchange rate of USD policy for tax deduction?
Q7. Which exact amount should I fill in according to the letter?
Q8. Which column should I fill in the Tax Return – Individual (VIR60) for VHIS-related tax deduction?
Q9. Is there any limit on the number of eligible policies for which I can claim tax deduction?
Q10. Who can claim tax deduction for the premium paid for an eligible VHIS policy?
Q11. If an insurance policy covers a Certified Plan as well as a life insurance plan, will the total premium of this policy be eligible for tax deduction?
Q12. If a personal income taxpayer is already subject to the standard tax rate of 15%, can he/she save taxes by claiming tax deduction for qualifying premium of VHIS policies?
Q13. can the non-taxpayer make deduction claim for premiums paid by him/her?
Q14. Is there any limit on the amount of premium of eligible policies that can claim tax deduction?
Q15. If I have any questions about tax deduction under VHIS, what should I do?
Remarks for Voluntary Health Insurance Scheme (VHIS) Certified Plan:
You must meet all the eligibility requirements set out under the Inland Revenue Ordinance and any guidance issued by the IRD of HKSAR before you can claim the tax deductions.
Any general tax information provided is for your reference only, and you should not make any tax-related decisions based on such information alone. You should always consult with a professional tax advisor if you have any doubts. Please note that the tax law, regulations or interpretations are subject to change and may affect related tax benefits including the eligibility criteria for tax deduction. We do not take any responsibility to inform you about any changes in the laws and regulations or interpretations, and how they may affect you. Please contact the IRD directly for any tax related enquiries.
Remarks for QDAP:
You must meet all the eligibility requirements set out under the Inland Revenue Ordinance and any guidance issued by the Inland Revenue Department of HKSAR before you can claim these tax deductions.
Any general tax information provided is for your reference only, and you should not make any tax-related decisions based on such information alone. You should always consult with a professional tax advisor if you have any doubts. Please note that the tax law, regulations or interpretations are subject to change and may affect related tax benefits including the eligibility criteria for tax deduction. We do not take any responsibility to inform you about any changes in the laws and regulations or interpretations, and how they may affect you. Further information on tax concessions applicable to QDAP may be found at www.ia.org.hk/en.
Q1. What is the purpose of this letter - Annual Summary of Voluntary Health Insurance Scheme (VHIS) Certified Plan?
Q2. When will the tax deduction under VHIS be effective?
Q3. How can an insurance policy qualify for claiming tax deduction under VHIS?
Q4. What is the definition of “specified relatives”?
Q5. Why is the amount of total premium paid different from the exact amount of tax deduction?
Q6. What is the exchange rate of USD policy for tax deduction?
Q7. Which exact amount should I fill in according to the letter?
Q8. Which column should I fill in the Tax Return – Individual (VIR60) for VHIS-related tax deduction?
Q9. Is there any limit on the number of eligible policies for which I can claim tax deduction?
Q10. Who can claim tax deduction for the premium paid for an eligible VHIS policy?
Q11. If an insurance policy covers a Certified Plan as well as a life insurance plan, will the total premium of this policy be eligible for tax deduction?
Q12. If a personal income taxpayer is already subject to the standard tax rate of 15%, can he/she save taxes by claiming tax deduction for qualifying premium of VHIS policies?
Q13. can the non-taxpayer make deduction claim for premiums paid by him/her?
Q14. Is there any limit on the amount of premium of eligible policies that can claim tax deduction?
Q15. If I have any questions about tax deduction under VHIS, what should I do?
Q1. What is the tax deduction amount? How much can I save?
Q2. When will the tax deductions become effective? When can I declare the deductions?
Q3. What supporting documents are required from a taxpayer when a review by the Inland Revenue Department is made? How long do I need to keep those documents?
Q4. Do the tax deductions cover the premiums for QDAP made by the taxpayer’s spouse?
Q5. I purchased a Qualifying Deferred Annuity Policy together with some riders. Are the premiums for the riders’ tax deductible?
Q6. Is the insurance levy paid together with the qualifying deferred annuity premiums tax deductible?
Q7. What is the exchange rate of USD policy for tax deduction?
Q8. Taxpayer purchased two qualified deferred annuity policies for himself and paid the qualifying annuity premiums of $30,000 and $20,000 respectively. Can taxpayer claim deductions for the premiums paid for two policies in the same year of assessment?
Q9. Taxpayer purchased a qualifying annuity policy for his spouse who is not a HKID card holder. Can taxpayer claim deduction?
Q10. During the year of assessment of 2019/20, taxpayer paid qualifying annuity premiums of $50,000 and a tax deductible MPF voluntary contribution of $40,000, for a total exceeding the specified maximum deduction of $60,000. In this case, what is the deduction order?
Q11. Taxpayer purchased a qualifying deferred annuity policy and the premiums of $40,000 were due and payable on 31 March 2020. Taxpayer paid premiums of $30,000 on or before the due date and settled the outstanding premiums on 7 April 2020. What is the amount of deduction can taxpayer claim in year of assessment 2019/20?
Q12. What is the purpose of this letter?
Q13. Which exact amount should I fill in?
Q14. Which column should I fill in the Tax Return – Individual (BIR60) for Qualifying Deferred Annuity Policy -related tax deduction?
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