Tax Saver 2023: Disability Allowance and Disabled Dependents’ Allowance? What is the application process for them?

Tax Saver 2023: Disability Allowance and Disabled Dependents' Allowance? What is the application process for them?

In Hong Kong, both disabled dependents and disabled persons are entitled to tax concessions to reduce their tax burden. These tax benefits include the Disabled Dependant Allowance and the Disabled Person’s Allowance. This article will introduce you to the requirements and considerations for these allowances to help you understand the tax benefits.

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Disabled Dependent’s Allowance?

Disabled Person’s Allowance?

Disabled Dependant Allowance?

The Disabled Dependent Allowance is a tax credit created by the Hong Kong government for families who care for a person with a physical or mental disability. You can claim the Disabled Dependant Allowance if you provide for a family member who is eligible for the Hong Kong Government Disability Allowance Scheme in any tax year.

A “dependent” is defined as

The taxpayer’s spouse; or

The taxpayer’s child; or

A parent, grandparent of the taxpayer or his or her spouse; or

a sibling of the taxpayer or spouse.

This allowance is an additional tax benefit that can be combined with the married person’s allowance, the child allowance, the dependent parent and dependent grandparent allowances, the elderly residential care expenses deduction, or the dependent sibling allowance.

Procedure for claiming the Disabled Dependents’ Allowance:

If you are planning to apply for the Disabled Dependent’s Allowance, the IRS may require evidence to prove that the dependent is eligible for government disability benefits. If the dependent has already applied for the Disability Allowance from the Social Welfare Department, you can provide the file number you received when you applied for the allowance as documentation.

To be eligible for Disability Allowance under this program, the applicant must provide a certificate issued by the Director of Health or the Chief Executive Officer of the Hospital Authority (or in very exceptional cases, a registered medical practitioner of a private hospital) stating that the dependent is severely disabled and that the disability will last for a period of not less than six months.

What is the Disability Allowance?

If an applicant is eligible for the Hong Kong Government Disability Allowance Scheme, he/she can apply for the new Disability Allowance starting from the 2018/19 tax year to further reduce his/her tax burden.

Disability Allowance Application Procedure:

If you wish to claim the Disability Allowance, simply check box (4) in section 11.1 when completing your personal tax return, stating that you are eligible for the Government Disability Allowance for that year and wish to claim the Disability Allowance.

These two allowances are additional tax benefits that can be claimed in addition to other tax benefits already available to taxpayers such as the Married Person’s Allowance, the Child Allowance, the Dependent Parent/Grandparent Allowance or the Elderly Residential Care Expenses Deduction, and the Dependent Brother/Sister Allowance. The above information is for reference only. If you have any questions or information about tax filing (personal tax return, corporate tax return, accountant tax return), you are welcome to contact our professional advisors and we will provide you with a free quote and consultation service later.

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