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Hong Kong Salaries Tax – Elderly Residential Care Expenses

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Hong Kong Salaries Tax – Elderly Residential Care Expenses

A Hong Kong taxpayer may claim the elderly home expenses that has been paid to a residential care home for his or his spouse’s parent or grandparent subject to the following conditions:

•	The parent or grandparent is at least 60 years old, unless he/she is entitled to claim an allowance under the Government’s Disability Allowance Scheme
•	The parent or grandparent was receiving residential care in a residential care home in the year of assessment
•	The expenses were paid to a residential care home or any person acting on its behalf
•	The expenses were actually paid by you or your spouse in the year of assessment (net of any reimbursement by any person or organization)
•	The residential care home is registered and situated in Hong Kong
•	The deduction only covers the cost of care, such as, accommodation, food and nursing care. For those medical expenses and private expenses paid by the residential care home on the resident’s behalf are excluded

Full-year expenses are allowed when the parent reaches 60 years old in the year of assessment. In other words, no time apportionment of the expenses for the number of days before and after the parent reaches 60 years old during a year of assessment is necessary.

Annual deduction ceiling is shown as below:

Year of assessment	Deduction ceiling (HK$)
2013/14	76,000
2014/15 to 2015/16	80,000
2016/17 to 2017/18	92,000
2018/19 onwards	100,000

No double claim for the same parent or grandparent for a year of assessment is allowed. If two or more persons claiming the deduction, they should reach an agreement as to who will claim the deduction for a year of assessment. If no such agreement is made, no one can get the deduction.

You may claim the deduction for elderly residential care expenses by completing Part 9.4 of your tax return for the relevant year of assessment. If you forget to do so, you may still make a claim in writing within the prescribed time limit, i.e. within 6 years after the end of the year of assessment or within 6 months after the issue of a notice of assessment for the year of assessment, whichever is the later. You also need to state details of the omission and submit sufficient evidence to substantiate the claim.

Source：Hong Kong Inland Revenue Department’s website

- https://www.gov.hk/en/residents/taxes/salaries/allowances/deductions/elderly.htm
- https://www.ird.gov.hk/eng/faq/ctr.htm

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Hong Kong Salaries Tax – Elderly Residential Care Expenses

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