VHIS tax deduction
Up to HK$8,000 per insured person a year

How much VHIS premium can I deduct?

From the 2020/21 year of assessment, each taxpayer can deduct up to HK$8,000 a year for each insured person — the qualifying premiums actually paid or $8,000, whichever is lower.

• No limit on the number of insured persons: yourself, your spouse, children and eligible parents each have their own $8,000 cap.
• Several policies for one insured person: the premiums can be added together, but the total deduction is still capped at $8,000 (IRD FAQ Q5).
• Several taxpayers insuring the same person: for example, two brothers who each buy a policy for their father can each claim, up to $8,000 each (Q2).
• Premiums above $8,000 for one insured person cannot be deducted, and the unused part cannot be moved to another person.

Official example: a taxpayer insuring themself and their family

Example and figures: VHIS website, Tax Deduction page, Example 2. Premiums are illustrative and depend on age and plan; 15% is the rate assumed in the example — your saving depends on your own tax rate (see “How much tax will I actually save?”).

Do Standard and Flexi Plans both qualify?

Yes. What matters is whether the policy is issued under a Certified Plan (a plan certified by the Secretary for Health as complying with VHIS), not whether it is a Standard or a Flexi Plan. Both have the same cap of $8,000 per insured person.

“Qualifying premiums” only cover the part relating to the Certified Plan:

• If a policy covers a Certified Plan and a life insurance plan, only the premium for the Certified Plan is deductible (gov.hk).
• Some insurers offer non-VHIS benefits alongside a Certified Plan. Their premium is not regulated under VHIS and is not tax-deductible; insurers must tell you this when selling (VHIS FAQ for Insurance Companies, Q16).

The safest figure to use is the qualifying premium on your insurer’s premium receipt or annual premium statement. You can check the list of Certified Plans on the VHIS website. For the difference between the two plan types, see our Standard Plan guide and Flexi Plan guide, or put plans side by side in Compare Plans.

Who can claim the VHIS tax deduction?

Under the gov.hk rules, you can claim for qualifying premiums paid by you or your spouse (not living apart) as a policy holder of a VHIS policy. In other words, both of these must be true:

1. You (or your spouse) are the policy holder; and
2. You (or your spouse) actually paid the premium.

Common situations:

• An adult child insures a parent, is the policy holder and pays: the child can claim, provided the parent is a specified relative (see the next question).
• Paying without being a policy holder: no deduction. In IRD FAQ Q6, a sister paid part of the premium for her brother’s policy but was not a policy holder, so she cannot claim.
• Joint policy holders: the premiums are treated as paid by all policy holders in equal shares. Two brothers jointly insuring their father for $12,000 can each claim $6,000, even if they actually paid $8,000 and $4,000 (Q3).
• Dependent parent allowance already claimed: this has no direct link to the premium deduction; other policy holders can still claim premiums for the same insured person (Q4).
• Change of policy holder during the year: each person can only claim premiums paid while they (or their spouse) were the policy holder (VHIS FAQ for Insurance Companies, Q55).

So if an adult child pays for a parent’s cover, the more direct arrangement is for the child who pays to be the policy holder. Policy-holder arrangements depend on the policy terms, so check with the insurer before buying or changing them. See also our worked example for yourself, your spouse and parents.

Which family members can I claim for?

The insured person must be you or your specified relative. Each condition only has to be met at any time during the year of assessment:

• Your spouse: no age condition.
• A parent or grandparent of you or your spouse: aged 55 or more, or under 55 but eligible to claim an allowance under the Government’s Disability Allowance Scheme.
• A child or sibling of you or your spouse: unmarried, and
  • under 18; or
  • aged 18 or more but under 25, and in full-time education at a university, college, school or similar establishment; or
  • aged 18 or more but incapacitated for work by physical or mental disability.

The insured person must also be a Hong Kong identity card holder at any time during the year of assessment. If they are under 11 and do not hold one, their natural or adoptive parent must have held one when they were born or adopted.

So premiums for a healthy 50-year-old parent, a married child, or a healthy 30-year-old sibling are not deductible, even though the relationship qualifies. For choosing cover for older parents, see buying VHIS for parents in their 60s.

How do married couples split the deduction?

A married taxpayer can claim premiums paid by themself or their spouse (not living apart) as a policy holder, excluding anything the spouse has already claimed. A spouse who is not the policy holder and paid nothing can still claim premiums that you paid as policy holder (IRD FAQ Q7).

• You must agree how to divide it: each of you is capped at $8,000 per insured person, and the total cannot exceed the premiums paid. For $14,000 paid for a son, you could claim $8,000 and $6,000, or $7,000 each (Q8). Without agreement, the claim will not be entertained.
• Spouse with no chargeable income: joint assessment is not available, so the cap per insured person is your own $8,000 (Q8).
• Spouse living apart: you cannot claim premiums paid by a spouse living apart (Q9).

How much tax will I actually save?

The deduction comes off your assessable income, not off your tax bill. Your saving = deductible amount × the tax rate that applies to you.

• Salaries tax progressive rates are 2%, 6%, 10%, 14% and 17%. Using one insured person’s full $8,000 saves roughly $160 (2%) to $1,360 (17%) a year.
• Taxpayers charged at the standard rate (from 2024/25: 15% on the first $5 million of net income, 16% on the remainder) can also claim (IRD FAQ Q11).
• If your tax for the year is already fully waived by a government tax reduction, the deduction may not save anything extra.

How do I claim, and what documents do I need?

• Tax return: claim in Part 9, “Qualifying Premiums Paid under Voluntary Health Insurance Scheme (VHIS) Policy”, of your Tax Return – Individuals (BIR60).
• Claiming after you have filed: complete form IR831 and return it to the IRD, no later than 6 years after the end of the relevant year of assessment.
• Documents: you do not attach them when filing, but keep premium receipts and annual premium statements for 6 yearsafter the end of the relevant year of assessment, in case the IRD asks to verify.

Which year of assessment does a premium count towards?

The date you actually paid decides it, not the due date. A year of assessment runs from 1 April to 31 March.

IRD FAQ Q12: a premium due on 30 March 2026 but paid on 2 April 2026 can only be claimed for 2026/27, not 2025/26. Insurers show payment dates on their payment records and apply their own consistent definition of the payment date (VHIS FAQ for Insurance Companies, Q54). Paying with credit-card rewards or similar is fine if the method is legal and accepted by the insurer (Q53).

What if I cancel, get a cooling-off refund or a premium is refunded?

The deductible amount is the premiums paid minus any premiums refunded. The same applies to cooling-off cancellations, surrenders and partial refunds.

• Refund before you claim: claim the net amount only — $5,000 paid less a $1,000 refund means claiming $4,000 (IRD FAQ Q10).
• Refund after the deduction is allowed: notify the Commissioner in writing within 3 months of the refund date; an assessor may raise an additional assessment. Failing to notify without reasonable excuse may lead to a fine or additional tax.

Does the VHIS deduction use up my QDAP or TVC allowance?

No. The two caps are separate:

• VHIS: $8,000 per insured person a year, no limit on the number of insured persons.
• Qualifying deferred annuity premiums (QDAP) + tax-deductible MPF voluntary contributions (TVC): combined cap of $60,000 per taxpayer a year.

If QDAP and TVC together exceed $60,000, the IRD deducts TVC first, then QDAP. For example, TVC of $40,000 plus QDAP of $50,000 gives TVC $40,000 and QDAP $20,000 (IRD annuity and TVC FAQ, Q8).

What are the common mistakes when claiming?

Before you file, check:

1. The relative does not qualify: a parent under 55 without Disability Allowance eligibility, or a child or sibling who is married or over the age limit.
2. You are not the policy holder: paying the premium is not enough on its own.
3. A couple claims twice: together you cannot claim more than was paid; exclude what your spouse has claimed.
4. Non-qualifying premiums included: life insurance or non-VHIS benefits are not deductible.
5. Wrong year: the payment date counts, not the due date.
6. A refund not reported: refunds received after the deduction is allowed must be reported in writing within 3 months.
7. Records not kept: keep premium receipts and annual premium statements for 6 years.