The National Financial Regulatory Administration ("NFRA") released on July 6, 2023 the Circular on Matters concerning Commercial Health Insurance Products Eligible for the Preferential Personal Income Tax Policies, to be effective on August 1, 2023.
The document expands the scope of commercial health insurance products that are eligible for the preferential individual income tax policies to include medical insurance products, long-term care insurance products, and sickness insurance products. It requires commercial health insurance information platforms to set up information accounts for the insureds, use the accounts to collect and record the information about all the commercial health insurance products purchased by insureds that are eligible for the preferential personal income tax policies, and support the insureds to make pre-tax deduction of personal income tax in accordance with the applicable rules. By clarifying four conditions, it also encourages qualified life insurers to carry out commercial health insurance business that is eligible for the preferential personal income tax policies.