Tax Treatment of Medical and Dental Care (Summary Table)
|Nature||Taxable/ Not taxable|
Reimbursements of medical and dental care / treatment provided for:
a) Employee, employee's spouse and children; and
Not taxable if the benefits are available to all employees
See Scope of Administrative Concession (below)
b) Dependants other than those listed in (a).
Medical benefits that are available to employees based on gender or age or employee's grade.
Not taxable, if:
Medical care provided through medical insurance. The employer pays the insurance premium.
The tax treatment depends on the type of medical insurance provided.
For details, please see Insurance Premium.
Reimbursement of transport expenses incurred for medical consultation.
Taxable as it is not regarded as reimbursement for medical care but one for private expenses
Reimbursements for Medical and Dental Care
Scope of Administrative Concession
Reimbursements for medical and dental care treatment including traditional Chinese medicine treatment are not taxable.
Reimbursements for purchase of health supplements, contact lens and eyeglasses are taxable as they are not covered under the administrative concession.
General Practitioner (GP) vs. Specialist Medical Bills
There is no difference in the tax treatment for GP bills from specialist medical bills. If both benefits are available to all employees,the reimbursement for both types of bills are not taxable.
Reimbursements Based on Employee's Grade
Applying different thresholds for staff of different grades does not affect the tax treatment. The different amounts of reimbursements on the same benefit (e.g. hospitalisation) are not taxable.
Medical or Dental Benefits under Flexible Benefits Scheme
Offering medical and dental benefits under the flexible benefits scheme (also known as cafeteria benefits) does not change the tax treatment of the benefits. For details, please refer to Flexible Benefits Scheme.
Ceiling or Cap on Reimbursements
There is no threshold or cap on the amount/value of reimbursement for medical or dental care.