On 31 October 2018, the Inland Revenue (Amendment) (No. 4) Bill 2018 was passed by the Legislative Council. The new Ordinance gives effect to a concessionary tax measure proposed in the 2018-19 Budget (see Hong Kong-1, News 1 March 2018).
Under the new arrangement, with effect from 1 April 2019, a taxpayer can claim tax deductions under salaries tax and personal assessment for the Voluntary Health Insurance Scheme (VHIS) premiums procured for the benefit of the taxpayer and all specified relatives (including the taxpayer's spouse and the children, parents, grandparents and siblings of the taxpayer's spouse). The annual tax ceiling of premiums for tax deduction is HKD 8,000 per insured person.