From 1 Apr 2019, Hong Kong taxpayers can benefit from reduced tax liabilities if they buy eligible health insurance under the Voluntary Health Insurance Scheme (VHIS). Participants can deduct the cost of VHIS policy premiums — up to HKD $8,000 per insured person, including the taxpayer’s spouse, children, parents, grandparents and siblings. Total deductions per participant are capped at HKD $420,000 annually, but no lifetime cap applies.
The VHIS is aimed at alleviating the pressure on public health services and encouraging individuals to use private healthcare services and purchase health insurance policies at a younger age. The government anticipates that the plans launched in April will provide a benchmark for non-VHIS insurance plans to follow.