The National Taxation Bureau of Kaohsiung (hereinafter referred to as the “Bureau”) stated that, when filing individual income tax returns, taxpayers claiming deductions for medical and maternity expenses must note that “any portion covered by insurance benefits shall not be deducted.” Recently, a taxpayer, Mr. A, reported that, although he filed his 2024 individual income tax return based on medical expense data retrieved from his National Health Insurance (NHI) records, he still received a tax reassessment notice from the National Taxation Bureau. The main reason was that he failed to deduct insurance claim benefits.

The Bureau stated that medical and maternity expenses incurred by taxpayers, their spouses, or dependents are deductible only when paid to public hospitals, medical institutions contracted with the National Health Insurance (NHI), or hospitals whose accounting records have been reviewed and certified by the Ministry of Finance as complete and accurate. However, any portion covered by insurance benefits shall not be deducted.

Taking Mr. A as an example, he reported a medical expense receipt of NTD 300,000 issued by a public hospital. However, NTD 80,000 of that receipt was covered by insurance benefits. Therefore, Mr. A can claim only NTD 220,000 in medical and maternity expenses. The public often mistakenly believes that medical and maternity expenses can be fully deducted, and fails to note that the portion covered by insurance benefits must be excluded. If the full amount is claimed, taxpayers will be required to pay the tax deficiency.

The Bureau urged that, when claiming medical and maternity expense deductions for individual income tax, taxpayers should obtain medical expense receipts issued by medical institutions in compliance with tax regulations, and should ensure that any amounts covered by insurance benefits are deducted. If you have any questions, please call our toll-free service hotline at 0800-000-321 or visit the Bureau's website（https：//www.ntbk.gov.tw）to make inquiries online using the National Tax Smart Assistant “National Tax Helper.”

Provided by: First Individual Income Tax Section

Contact person: Section Chief, Ms. Lin.                 Phone number: (07)7256600 ext. 7270

Contributor: Ms. Lee.                                              Phone number: (07)7256600 ext. 7222