Articles

Service Hotline: Mo to Fr 9am-6pm (CST) +86 10 6561 6609

Starting 1 July 2017, a pilot program that exempts the premium paid for qualified commercial health insurance from taxable income will be implemented nationally.

 

This program has already been implemented in 31 cities, including Beijing, Shanghai, and most major Chinese cities. This will expand the policy to smaller cities, as well as to rural areas. It is expected to increase insurance premiums by billions of RMB.

 

Under this policy, individuals will be able to claim up to 2,400 RMB annually for premiums paid on qualified commercial health insurance products. This is in addition to payments from statutory tax deductions.

 

The policy differs depending on who is paying for the insurance. If the employer pays, or the employers and employee both pay the cost, there is a monthly cap of 200 RMB in addition to the annual cap of 2400 RMB. The cost of commercial health insurance products will be included in the employee’s wage and salary. The employee can then claim their deduction. The monthly 200 RMB limit does not apply to self-employed, contracted, leased, and similar workers, as they are taxed on an annual basis.

 

The new policy also sets out standards on what a “qualified” commercial health insurance product is. One such policy is the “guaranteed low-profit principle,” which limits how profit companies can make for each product sold.  

 

Ecovis Take

 

 

Chances are, you were already living in a city where the program was in place, so you won’t be directly affected. This policy is significant for the Chinese Health Insurance market, which may soon grow to over 100 billion RMB. Like we’ve said in the past, if you’re prepared, this industry provides a lot of opportunities, for both foreign and domestic companies. 

 

ECOVIS Beijing is a consultancy focusing on accounting, audit, tax, legal, and FDI advisory for foreign SMEs and Start-Ups in China. For more information, please visit our website www.ecovis-beijing.com or contact This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Manu nue

 
Manuela Reintgen
 
Manuela Reintgen has been living and working in Shanghai and Beijing since 2009 and recently joined ECOVIS Beijing as Manager of the Business Development team. Having focused on foreign direct investment into China for the last few years, she advises clients on all aspects of establishing and doing business in China. Contact: This email address is being protected from spambots. You need JavaScript enabled to view it.
Ecovis Beijing is the trusted tax and legal advisor to several embassies and official institutions in China. It specializes in mid-sized international companies and focused on tax & legal advisory, accounting and auditing. If you’re interested in finding out more about tax and legal, don’t hesitate to sign up to our Newsletter or give us a call  +86 10-65616609 (ext 811/806) or contact us directly via sThis email address is being protected from spambots. You need JavaScript enabled to view it..
Linkedin contact ecovis beijing

NEWSLETTER

Newsletter

 

 

Business Hotline:

+86 10 6561 6609

Monday - Friday 9am - 6pm

China Standard Time

This email address is being protected from spambots. You need JavaScript enabled to view it.

 

ECOVIS Beijing
Room 1105, DRC Building, No. 19 Dongfang East Road, 

Chaoyang District, Beijing, 100600

 

 

China Desk in Heidelberg

Lenaustrasse 12, 69115 Heidelberg

Germany

Argentina
Australia
Austria 
Belgium 
Brazil 
Bulgaria 
China

Colombia

Croatia 

Cyprus 
Czech Republic
Denmark 
Estonia

Finland
France 
Germany

Greece

Hong Kong
Hungary
India 
Indonesia 
Ireland

Israel 
Italy  
Japan 

Latvia

Liechtenstein 

Lithuania
Luxembourg

Macedonia
Malaysia 
Malta 
Mexico

Netherlands 
New Zealand 
Poland 
Portugal

Qatar
Romania 
Russia 
Serbia

Singapore  
Slovakia 
Slovenia

South Africa

South Korea 
Spain 
Sweden

Switzerland

Taiwan

Thailand

Tunisia
Turkey
Ukraine  
United Kingdom

United States 
Uruguay