09.01.06. Tax allowances | Hong Kong SAR

09.01.06. Tax allowances | Hong Kong SAR

22 Aug 2022

Salaries Tax and its various types of allowance and deductions are discussed here. Again, there are no dementia-specific tax reduction measures in Hong Kong. People with dementia and their carers benefit from these current measures, but they do not enjoy extra benefits.

People with dementia who are employed and whose income are taxable, can claim the Personal Disability Allowance if they are eligible for the Disability Allowance under the Social Security Allowance Scheme (HKSAR Government, 2020, February).

Carers or family members of people with dementia can claim Dependent Parent and Dependent Grandparent Allowance if their dependent parents and/or grandparents aged over 55 are eligible for Disability Allowance (HKSAR Government, 2020, February). If the dependent is aged below 55 and is eligible for Disability Allowance, for instance, with very early onset dementia, carers can claim Disabled Dependant Allowance (HKSAR Government, 2020, February). For people with dementia living in residential care homes, their carers can apply for Deduction for Elderly Residential Care Expenses if they pay for the care home expenses (HKSAR Government, 2019, May-a). The amount of Tax Allowances and Deductions in relation to elderly care is summarised below (Inland Revenue Department, 2020, April):


  • Basic Allowance HK$132,000
  • Dependent Parent and Dependent Grandparent Allowance (For each dependant)
    • Parent / grandparent aged 60 or above or is eligible to claim an allowance under the Government’s Disability Allowance Scheme HK$50,000
    • Parent / grandparent aged 55 or above but below 60 HK$25,000
  • Personal Disability Allowance HK$75,000
  • Disabled Dependant Allowance (For each dependant) HK$75,000

Deductions – Maximum Limits

  • Elderly Residential Care Expenses HK$100,000

HKSAR Government. (2019, May-a). Deduction for Elderly Residential Care Expenses. Retrieved from https://www.gov.hk/en/residents/taxes/salaries/allowances/deductions/elderly.htm

HKSAR Government. (2020, February). Allowances. Retrieved from https://www.gov.hk/en/residents/taxes/salaries/allowances/allowances/allowances.htm#pda

Inland Revenue Department. (2020, April). Allowances, Deductions and Tax Rate Table.  Retrieved from https://www.ird.gov.hk/eng/pdf/pam61e.pdf.