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Ebner Stolz Asia

Human Resources, Taxes

Individual income tax (“IIT”) regulation on commercial health insurance promoted nationwide

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By admin July 15, 2017

The State Administration of Taxation, Ministry of Finance, China Insurance Regulatory Commission jointly announced the Cai Shui [2017] No. 39 (Circular 39) to promote the pilot polices for individual income tax on commercial health insurance nationwide effective from 1 July 2017. The expenses for purchasing qualified commercial health insurance products by individuals are deductible from the IIT taxable income up to CNY 2400 per year (CNY 200 per month). If the enterprise employers purchase qualified commercial health insurance products for their employees, such expenses shall be included in the salaries of employees and be subject to the above deduction limit as if the commercial health insurance products are purchased by the employees. Qualifying commercial health insurance products refer to health insurance products offering personal income tax incentives and meeting to certain requirements. 

You may check with the commercial health insurance supplier to see whether the purchased products are qualified to apply tax deduction or seek for qualified commercial health insurance products.

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