VHIS tax deduction: how much per year and how to claim

How much can VHIS deduct?

The current cap on qualifying VHIS premiums is HK$8,000 per insured person per year. The deduction is counted by the number of insured persons, with no limit on how many you insure — insure several qualifying relatives and claim up to HK$8,000 for each. Note the cap is per insured person, not per policy: even if you buy multiple certified plans for the same person, their combined cap is still HK$8,000; insure different people, however, and each has their own cap. The actual deduction equals the qualifying premiums you paid in the year of assessment — if the year's premiums are below HK$8,000, the deduction is the actual premium, not automatically HK$8,000. For the benefit framework of certified plans, see VHIS and retirement healthcare.

The cap, deductible scope and arrangements follow the latest Inland Revenue Department announcements.

Who can you insure and deduct for?

• Yourself: qualifying premiums for a certified plan.
• Specified relatives: e.g. spouse, children, parents, grandparents and siblings (per the tax definition of a specified relative).
• Each insured person counts separately: up to HK$8,000 each per year, with no limit on the number of insured persons.
• You need not be the insured person: as long as you are the taxpayer paying the qualifying premiums, you can claim even when the insured person is a parent or child.

The definition of qualifying relatives, and which taxpayer may claim for a given insured person, follow the IRD; premiums must be qualifying premiums for a certified plan. When arranging cover for elders, see planning healthcare for your parents.

How to claim

1. Keep proof of paymentInsurers generally provide a summary or certificate of qualifying premiums for the certified plan, listing the insured person and premiums paid; have each insured person's details ready before filing.
2. Complete the tax returnEnter each insured person's qualifying premiums and the certified plan's policy number in the VHIS premiums section of the individual tax return (BIR60).
3. Deduct up to the capUp to HK$8,000 per insured person; the system or IRD applies the cap for each insured person, and any excess is not carried forward to the next year.
4. Check the assessment noticeWhen you receive the notice of assessment, check that the number of insured persons and the amounts deducted match what you filed, and query the IRD through the usual channels if they differ.

The exact fields, eligible year and requirements follow the IRD tax return and latest guidance.

How does it fit with the 'tax-saving trio'?

VHIS is a standalone deduction; it does not share a cap with MPF tax-deductible voluntary contributions (TVC) or qualifying deferred annuities (QDAP), and can be claimed alongside them. The table below sets out the differences — TVC and QDAP share one cap, while VHIS is counted separately. To see how these deductions work together, read the full guide to the tax-saving trio; for contribution mechanics see MPF and tax-deductible voluntary contributions.

The amounts above reflect current arrangements; all follow the latest IRD announcements. This is not personalised tax advice.

Beyond the deduction, look at the cover itself

The deduction is an incentive, but the point of health insurance is whether the cover fits your needs. Certified VHIS plans have standard benefits and minimum requirements (e.g. guaranteed renewal, cover for pre-existing conditions unknown at application, premium transparency); as a rule it is worth taking out early for easier underwriting and relatively lower premiums. When comparing benefits and out-of-pocket costs across plans, see how to choose medical insurance, and weigh how certified plans divide roles with other medical protection options so the deduction and the cover both work for you.

General education only, not personalised tax or insurance advice; amounts and deduction arrangements follow the latest IRD and IA announcements.