By Sarah Brown 
You want to lower the cost of your taxes and still make sure you have enough health insurance. , picking a plan that is qualified for Voluntary Health Insurance Scheme (VHIS) tax deductions is a very important choice.
The VHIS was created by the Hong Kong government back in 2019. This allows people to get a tax deduction if they purchase an approved VHIS plan. This is aimed at letting insurance holders understand the importance of taking care of their healthcare needs. So how do you pick an insurance plan that lets you get a vhis tax deduction? Let’s go ahead and find out.
How to be Eligible for VHIS Tax Deduction
The first step in choosing a policy for VHIS tax deductions is understanding what is needed to qualify for the scheme. Not all health insurance policies in the market are eligible for this. Here’s a list of the eligibility requirements for the VHIS tax deduction:
- A Hong Kong tax resident.
- VHIS certified plan by the Hong Kong government.
- Registered insurer with the Insurance Authority of Hong Kong.
- Meets qualifying VHIS coverage criteria.
- Premium payments are paid for the policy in the relevant tax year.
Insurance Coverage and Benefits
Ensure the VHIS-eligible policy you choose comprehensively covers your healthcare needs. Check if it also covers pre-existing conditions which are often excluded in most policies. Verify if the policy includes flexible features for upgrades. You might need a better one in the future and this should not be a problem with your provider. So make sure that you look into the current coverage offer before you decide.
VHIS Tax Deduction on Premiums
The VHIS offers tax deductions on premiums. This though is only applicable to eligible policies. Premiums vary depending on the insurer. You also have to consider the type of coverage you need. Also, the insured person’s age and health condition must be considered when looking at deductible premiums. The VHIS tax deduction is capped at HKD 8,000 per person.
Learn the Tax Deduction Process
Once you have chosen an eligible VHIS policy, it’s important to understand how the tax deduction process works. It may vary for different insurers. But it all comes down to the same basic process. The following steps outline how the VHIS tax deduction is done:
- Ensure your policy is VHIS-certified.
- Pay premiums for the policy year.
- Report the premiums paid and include any supporting documents from your insurer during tax filing. You can provide the payment receipts or a policy statement.
- Submit your tax return by the deadline to complete the process.
Conclusion
Choosing a VHIS tax-deductible insurance policy is going to be a tedious process. It needs careful consideration of the most important factors discussed above. Remember that a good VHIS plan offers tax deductions and comprehensive healthcare. Make the time to do your research and compare plans. Also, verify the plan’s VHIS eligibility and choose the one that best meets your healthcare requirements and budget.