News & Policies
IIT policies for Commercial health insurance
Since July 1, 2017, The government announce that Individual Income tax for commercial health insurance promote the implementation to a nationwide.
The expenditures of individuals on purchasing eligible commercial health insurance products shall be allowed as pre-tax deductibles in the calculation of the taxable income of the year (or month) individual income tax, and such deductibles shall not exceed 2,400 yuan per year (or 200 yuan per month). The expenditures of enterprises and public institutions on eligible commercial health insurance products purchased in a unified manner for their employees shall be included in individual employees’ salaries and wages as if individual employees purchased such insurance, and pre-tax deductions shall be made as per the aforesaid limit.
Health insurance products shall adopt the universal insurance mode under which there are guarantee functions and minimum guaranteed income accounts are established, which includes two insurance liabilities, namely, medical insurance and personal account accumulation. The individual accounts of the insured shall be administered and maintained by the insurance companies where the insured purchase the insurance products.
The insured shall be taxpayers who are aged 16 or above, but under the statutory retirement age. Insurance companies shall not refuse to insure the insured for his or her past medical history, and shall guarantee the renewal of insurance.
The scope of the guarantee liabilities of medical insurance shall include the self-paid fees within the payment scope of the basic medical insurance funds payable at the place where the insured is covered by medical insurance and the expenses beyond the scope of payment of certain basic medical insurance funds, and the scope, proportion and quota of reimbursement of expenses shall be determined by the insurance companies themselves according to the characteristics of specific products.
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