Tax Treatment of Medical Expenses

Tax Treatment of Medical Expenses 医疗费用的税务处理

Medical Expenses 医疗费用

Medical expenses of employees are tax-deductible as long as these are capped at 1% of total employee remuneration accrued for the year. Please refer to Example 1 for an illustration of how the medical expense capping is applied. 雇员的医疗开支可获扣除税款,惟上限为雇员全年累积薪酬的1%。有关医疗费用上限如何适用的说明,请参阅例子1。

However, the cap increases to 2% if the company implements any of the following: 不过,如公司实施下列其中一项,最高限额会增至2%:

  • Portable Medical Benefits Scheme (PMBS); 随身医疗福利计划;
  • Transferable Medical Insurance Scheme (TMIS); or 可转移医疗保险计划;或
  • Provision of inpatient medical insurance benefits in the form of portable medical shield plans (additional deduction will exclude premiums for riders that cover deductibles and co-payments^). 以随身医疗福利计划的形式提供住院医疗保险福利(附加扣除将不包括免赔额和共同支付的附加费)。

In addition, if the company makes ad-hoc contributions to its employees’ Medisave accounts (subject to a cap of $2,730* per employee per year), it will also enjoy the additional tax deduction beyond the 1% limit on the amount of ad-hoc Medisave contributions made, even if the company did not adopt any of the portable medical benefits arrangements, up to the overall medical expenses tax deduction limit of 2%. Please refer to Example 2 for an illustration of the tax deduction allowable in such a scenario. 此外,如果该公司做出了特别贡献员工Medisave账户(每个雇员每年最高花费2730新元),公司还将享受超过1%的特别医疗储蓄供款限额的额外减税,即使公司没有采取任何随身医疗福利的安排,医疗费用的整体税收扣除上限也高达2%。请参阅示例2,以了解在这种情况下允许的税款扣减的说明。

^ If the medical expenses (including rider premiums) do not exceed 1% of the total remuneration of the employees for the relevant basis period, the full amount of medical expenses will be deductible. ^如医疗开支(包括附加保费)不超过雇员在有关评税基期内总薪酬的1%,则可扣除全部医疗开支。

If the medical expenses (including rider premiums) exceed 1% of the total remuneration of the employees for the relevant basis period, any excess amount which does not relate to rider premiums, will be deductible up to another 1% of the total remuneration of the employees for the relevant basis period. 若医疗费用(包括附加保费)超过有关评税基期雇员总薪酬的1%,则任何与附加保费无关的额外金额,可再扣除有关评税基期雇员总薪酬的1%。

*With effect from 1 January 2018, the cap has been been raised from $1,500 to $2,730 per employee per year. This is to encourage companies to make more contributions to their employees’ Medisave accounts for their medical needs. *从2018年1月1日起,每位员工的医疗贡献上限从1500新元提高到2730新元。这是为了鼓励公司为员工的医疗需求提供更多的医疗保险。

Find out more about the above portable medical benefits and qualifying conditions in the Ministry of Manpower website. 欲知更多有关上述随身医疗福利及合资格条件的资料,请浏览人力部网页。

Example 1 示例1

Total employee remuneration* 员工薪酬总额*

Medical expenses incurred ** 发生的医疗费用**

Company did not implement portable medical benefits 公司没有实施随身医疗福利

Company implemented portable medical benefits 公司实施随身医疗福利

   

Amount deductible (capped at 1% of total employee remuneration. Hence, cap is 1% X $100,000 = $1,000) 可扣除的金额(上限为雇员薪酬总额的1%)。因此,上限为1% X $100,000 = $1,000)

Amount not deductible 不可扣除金额

Amount deductible (capped at 2% of total employee remuneration) 可扣除的款额(上限为雇员薪酬总额的2%)

Amount not deductible 不可扣除金额

100,000

2,500

1,000

1,500

2,000

500

Example 2 示例2

Assumption:
Total employee remuneration* of the company is $3,000,000 in a relevant financial year. Company did not adopt portable medical benefits arrangements but made ad-hoc contributions to its employees’ Medisave accounts (subject to a cap of $2,730 per employee per year#). The total deduction is capped at 2% of the total employee remuneration, which is $60,000 (2% x $3,000,000). 假设:公司在相关财务年度的员工薪酬总额*为300万新元。公司没有采用随身医疗福利安排,但为员工的医疗保险账户提供了特别捐款(每位员工每年的最高限额为2730新元)。总扣除额上限为雇员薪酬总额的2%,即$60,000 (2% x $3,000,000)。

Scenario 场景

(A)
Medical expenses incurred** (excluding ad-hoc Medisave contributions
发生的医疗费用**(不包括特别Medisave贡献)

(B)
Amount deductible

(capped at 1% of total employee remuneration. Hence, cap is 1% X $3,000,000 = $30,000) 可扣除的金额(
上限为雇员总薪酬的1%。因此,上限为1% X $3,000,000 = $30,000)

(C)
Ad-hoc Medisave contributions
特别Medisave贡献

(D)
Additional deduction with ad-hoc Medisave contributions
额外扣除特别Medisave贡献

Lower of:
(C) or
[$60,000-(B)] (C)
或[$60,000-(B)]较低者

(B) + (D)
Total tax deduction claimable in Income Tax Return
所得税申报单上可要求扣除的总税额

 1

$27,000

$27,000

$15,000

$15,000 Lower of $15,000 or $33,000 ($60,000-$27,000)

$42,000

2

$45,000

$30,000

$15,000

$15,000 Lower of $15,000 or $30,000($60,000-$30,000)

$45,000

3

$82,000

$30,000

$45,000

$30,000 Lower of $45,000 or $30,000 ($60,000-$30,000)

$60,000

4

$27,000

$27,000

$45,000

$33,000 Lower of $45,000 or $33,000 ($60,000-$27,000)

$60,000

*Total employee remuneration includes: *员工薪酬总额包括:

  • employees’ salaries, allowances & bonuses; 员工工资、津贴和奖金;
  • directors’ remuneration; 董事的报酬;
  • CPF contributions. 公积金贡献。

It excludes: 它不包括:

  • directors’ fees; 董事费;
  • medical expenses; 医疗费用;
  • cash allowances in lieu of medical expenses; 以现金津贴代替医疗开支;
  • benefits-in-kind (e.g. accommodation, home leave passage, employee stock options provided by the employer, actual income tax borne by the employer); 实物福利(例如:住宿、探亲假旅费、雇主提供的雇员股票期权、雇主实际承担的所得税);
  • skills development levy (SDL); 技能发展征款;
  • foreign worker levy (FWL). 外籍工人税。

#With effect from 1 January 2018, the cap has been raised from $1,500 to $2,730 per employee per year. 从2018年1月1日起,每位员工的医疗贡献上限将从每年1500新元提高到2730新元。

Note: 注意:

To arrive at the “total employee remuneration” for the purpose of computing the medical expense capping, companies do not need to reduce the remuneration amount by the amount of payouts it receives from the government such as Wage Credit, Jobs Credit, Special Employment Credit (SEC), absentee payroll and government-paid child care/ maternity/ paternity leave. 为了达到计算医疗费用上限的“员工薪酬总额”,公司无需减少从政府获得的薪酬金额,如工资补贴、工作补贴、特别就业补贴(SEC)、旷工工资和政府支付的儿童保育/生育/陪产假。

Illustration: Company incurred $100,000 in employees’ salaries, allowances, bonuses and CPF contributions and received $5,000 from the government for government-paid maternity leave for its affected employees. Assuming the company implemented portable medical benefits, the medical expenses cap should be computed as follows: 2% x $100,000#= $2,000. 例证:公司为受影响的员工支付了10万新元的工资、津贴、奖金和公积金供款,并从政府获得了5000新元的政府带薪产假。假设公司实施了便携式医疗福利,医疗费用上限应该计算如下:2% x $100,000#= $2,000。

# The full $100,000 should be used in computing the cap and not $95,000 (i.e. $100,000 – $5,000). 10万新元应该用于计算上限,而不是9.5万新元(即10万- 5000新元)。

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