Starting from this month, the pilot policy of tax incentives for purchasing commercial insurance will be implemented in our city. The hotline of the Municipal Local Taxation Bureau 12366 has recently received many public inquiries about insurance tax deduction. The Municipal Local Taxation Bureau specially reminds that individuals who purchase commercial health insurance with "tax priority identification code" can enjoy the pre-tax deduction policy.
According to the staff of the Municipal Local Taxation Bureau, there are three types of taxpayers who can enjoy this preferential tax policy: first, individuals who receive wages and salaries and continuous labor remuneration; Second, taxpayers who obtain income from the production and operation of individual industrial and commercial households (including investors of sole proprietorship enterprises and partners of partnership enterprises); The third is the contracting and leasing operators who have obtained contracting and leasing business income from enterprises and institutions. Among them, the income from continuous labor remuneration refers to the income obtained by individuals who provide services for the same unit for more than 3 months (including 3 months).
According to the provisions of the circular, the expenses of individuals purchasing commercial health insurance products that meet the requirements are allowed to be deducted before tax when calculating the taxable income in the current year (month), and the deduction limit is 2400 yuan/year (200 yuan/month). It also applies to the purchase of employees by the company. In other words, the original personal monthly income after deducting five insurances and one gold exceeds 3,500 yuan, and personal income tax is required. If an individual buys commercial health insurance and pays an annual premium of not less than 2,400 yuan, then 2,400 yuan can be deducted before tax; The annual premium paid is less than 2400 yuan, and there is a pre-tax deduction equal to the premium paid. Take Mr. Wang who works in an enterprise in our city as an example. His monthly salary is 1 000 yuan (five insurances and one gold have been deducted). If he buys a large amount of personal health insurance with excellent tax, he can pay less tax in 40 yuan every month, and one year is 480 yuan.
The Municipal Local Taxation Bureau specially reminds the public to pay attention to three points: First, taxpayers who have obtained non-policy income items such as stock trading income, rental income and royalty income cannot enjoy this preferential policy; Second, only the tax preferential health insurance approved by the China Insurance Regulatory Commission, which has obtained the tax priority identification code, can deduct the tax; Third, individuals who purchase commercial health insurance products that meet the requirements themselves should provide the withholding agent with the policy certificate in time, and the withholding agent should handle the pre-tax deduction for them according to law and may not refuse.
In addition, individuals who obtain wages and salaries in two or more places in China and purchase commercial health insurance by themselves can only choose to deduct them in one place.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.