Effective 2026/08/18, the Ministry of Finance issued guidance permitting disabled persons who lease medical assistive devices to claim the associated rental expenses as eligible deductions under the medical expense itemized deduction scheme. The policy clarifies that rental payments for prescribed medical devices, such as oxygen concentrators, wheelchairs, and prosthetic equipment, qualify for inclusion in the annual medical expense ceiling, provided that leases are executed through licensed healthcare providers and supported by valid prescription documentation. Taxpayers must retain original lease agreements, receipts, and medical prescriptions to substantiate claims during filing, and may deduct amounts up to the statutory annual limit for medical expenses. This measure aims to alleviate the financial burden on disabled individuals and families, promote access to essential health equipment, and align tax policy with broader disability support and universal health coverage initiatives. The guidance also outlines audit procedures, emphasizing the retention of documentation for a minimum of five years to withstand potential tax authority examinations.
Key Takeaways
- Eligible Medical Expense Deduction for Leased Devices: Disabled persons may include qualified rental payments for prescribed medical assistive devices as itemized medical expense deductions, subject to documentation and statutory limits.
- Required Documentation and Retention: Taxpayers must preserve original lease contracts, payment receipts, and physician prescriptions for at least five years to validate deduction claims during tax reviews.
Disclaimer:This article is compiled and summarized based on publicly available information and is for general information and academic exchange purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. For tax planning, please consult a qualified professional tax advisor or legal counsel.
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