On May 2nd, the Ministry of Finance, State Taxation Administration of The People's Republic of China and the China Insurance Regulatory Commission issued the Notice on Extending the Pilot Policy of Individual Income Tax for Commercial Health Insurance to the whole country, which will be extended to the whole country from July 1 day. Previously, 3 1 cities, including Beijing and Tianjin, have piloted the tax deduction of commercial health insurance, which began to be promoted nationwide in July. Applying for tax-excellent health insurance can enjoy the deduction limit of 2400 yuan per year, that is, individuals or units can buy deductible commercial health insurance for themselves and pay less taxes every year.
How to deduct tax from commercial health insurance?
According to the above notice, the expenses of individuals purchasing commercial health insurance products that meet the requirements are allowed to be deducted before tax when calculating taxable income in the current year (month), and the deduction limit is 2400 yuan/year (200 yuan/month). The cost of purchasing commercial health insurance products that meet the requirements for employees shall be included in the employees' personal wages and salaries, regarded as individual purchases, and deducted according to the above limits. The limit deduction of 2400 yuan/year (200 yuan/month) exceeds the expense deduction standard stipulated in the individual income tax law.
Commercial health insurance products that meet the requirements here refer to qualified health insurance products developed by insurance companies with reference to the guiding framework and model clauses of personal tax preferential health insurance products.
You can pay less tax by purchasing deductible commercial health insurance. In addition, because the current individual tax rate is a step-by-step tax rate, if the deduction is only reduced to a lower level, for example, from 20% to 10%, you can pay a large sum of money. In addition, tax-excellent health insurance can cover diseases, but the annual compensation ceiling is different from that of healthy people. Moreover, if you are in good health at the time of insurance, even if you are unfortunately suffering from a serious illness later, the insurance company can not only refuse to renew your insurance, but also not classify the insured as a group suffering from a serious illness and reduce the reimbursement amount, and still be regarded as a healthy person.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.