Inland Revenue (Amendment) (Tax Deductions for Assisted Reproductive Service Expenses) Ordinance 2025 takes effect upon gazettal

The Government has enacted the Inland Revenue (Amendment) (Tax Deductions for Assisted Reproductive Service Expenses) Ordinance 2025 to amend the Inland Revenue Ordinance, introducing a tax deduction for assisted reproductive ("AR") service expenses under salaries tax and personal assessment. The amendment took effect immediately upon gazettal on February 28, 2025.

Qualifying AR service expenses paid starting from the year of assessment 2024/25 are eligible for tax deductions. All AR services received for medical reasons meet the criteria.

Eligible persons for the tax deduction include infertile couples or single persons under specific circumstances. This includes those undergoing sex selection of embryos to avoid sex-linked genetic diseases, or continuing to receive procedures where gametes were placed in a woman's body pursuant to a procedure during their marriage. Additionally, cancer patients or any other patients rendered infertile due to chemotherapy, radiotherapy, surgery, or other medical treatments are also eligible.

Expenses paid by the taxpayer, the taxpayer's spouse, or both for qualifying AR services are allowable deductions. The maximum annual deduction is $100,000. For married taxpayers, the combined deduction for both the taxpayer and the spouse is also capped at $100,000.

The Inland Revenue Department may request proof of qualifying AR service expenses to support the deduction claimed. This proof should be signed by a registered medical practitioner and obtained from licensed centers for services received on or after April 1, 2024. The proof form is available on the Council on Human Reproductive Technology ("CHRT") website.