Annual tax deduction ceiling is HK$8,000 per insured person for the premiums paid in relation to a VHIS certified plan, and there is no cap on the number of VHIS certified plan policy or insured person who are eligible for tax deduction. If you wish to apply for tax deduction as the policyholder of VHIS certified plan policies with other insured persons, these insured persons must be your dependants, who include your spouse/ child, your or your spouse's parent/ grandparent/ brother/ sister.
Example of Tax Deduction
Example 1: If you enrol in one VHIS certified plan policy
| Annual Premium for VHIS Certified Plan Policy (HK$) | Tax-deductible Amount (HK$) | Amount of Tax Saved (Assuming Tax Rate = 15%) (HK$) |
| 7,000 | 7,000 | 1,050 |
Example 2: If you are the policyholder and enrol in one certified plan policy for yourself and each of your following family members, you may save a total of HK$6,150 in tax.
| Insured Person | Annual Premium for VHIS Certified Plan Policy (HK$) | Tax-deductible Amount (HK$) | Amount of Tax Saved (Assuming Tax Rate = 15%) (HK$) |
| You | 10,000 | 8,000 | 1,200 |
| Spouse | 8,000 | 8,000 | 1,200 |
| Father | 30,000 | 8,000 | 1,200 |
| Mother | 20,000 | 8,000 | 1,200 |
| Son | 4,000 | 4,000 | 600 |
| Daughter | 5,000 | 5,000 | 750 |
| Total | 77,000 | 41,000 | 6,150 |
The date of premium payment determines the tax year for tax deduction, regardless of the payment mode. If you are paying monthly premium for example, the total premium qualified for tax deduction in a particular tax year would be the total monthly premium actually paid in the same tax year, with the tax-deductible amount up to HK$8,000 per insured person. For more details of the eligibility for tax deduction, please contact the Inland Revenue Department.
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