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Salaries Tax
- Elderly Residential Care Expenses
A taxpayer may claim the elderly home
expenses he pays for his or his spouse's parent or grandparent subject to the
following conditions:
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The parent or grandparent is at least 60;
or if under 60, he is eligible to claim disabled allowance.
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The expenses actually paid by the
taxpayer or by his spouse in the year of assessment.
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The expenses are paid to a recognized
elderly home in Hong Kong.
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The expenses cover accommodation, food,
nursing care and sundry expenses but exclude those of private medical
care or those of a personal nature not in the nature of residential
care.
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The expenses reimibursed by Social Welfare
Department cannot be claimed.
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Even taxpayers paying tax at standard rate
can get the deduction.
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Full-year expenses are allowed when the
parent reaches 60 in the year of assessment. In other words, no
time apportionment of the expenses is necessary.
The maximum deduction is $60,000 for each
parent.
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A taxpayer should not claim
Dependent Parent Allowance and Elderly
Residential Care Expenses for the same parent for the same year of
assessment. If that is the case, his claim for Dependent Parent Allowance
will be void and only his claim for Elderly Residential Care Expenses will
take effect. So, if the conditions of both claims are satisfied, the
taxpayer should decide which claim to make. Normally, if the elderly home
expenses are more than $30,000, it is advisable for him to claim
Elderly Residential Care Expense. Otherwise, he should claim Dependent
Parent Allowance.
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No double claim for the same parent is allowed.
 If two or more persons
claiming the deduction, they should reach an agreement as to who can get
the deduction. If no such agreement is made, no one can get the
deduction.
The taxpayer may
claim the deduction in your tax return. If he forgets to do so, he may
claim it by an objection when he receives
the assessment. Even if he misses the objection deadline, he can still
claim it by a Section 70A claim (because it
is an omission --- to claim the deduction). |
