China will expand tax preferential policies for taxpayers with commercial health insurance nationwide from July 1, according to a joint statement released on May 2.
The statement was jointly released by the Ministry of Finance, State Administration of Taxation and China Insurance Regulatory Commission.
It clearly stated that for purchasers of applicable commercial health insurance products, at most 200 yuan per month, or 2,400 yuan each year, will be deducted before they pay personal income taxes. The policy also applies to health insurance products purchased by companies for their employees.
According to the statement, beneficiaries include taxpayers with regular salaries and continuous remuneration, individual business owners, individual contractors of enterprises and public institutions, independent investors, business partners and business contractors.
Applicable insurance products are those developed by insurance companies according to regulations on insurance with tax preference.