Eligible Hong Kong residents receiving assisted reproductive services will enjoy a tax deduction up to HK$17,000 in the coming financial year, the government has announced.
The government gazetted on Friday an amended law to introduce a tax deduction for assisted reproductive service expenses under salaries tax and personal assessment, with immediate effect.
The Inland Revenue (Amendment) (Tax Deductions for Assisted Reproductive Service Expenses) Ordinance 2025 was passed by the legislature on February 19.
It marked the first time authorities provided subsidies to those paying for assisted reproductive services in private sectors.
According to the amendment, the maximum amount of deduction allowable for a year of assessment is HK$100,000. For married tax-paying couples, the maximum amount of deduction allowable is HK$100,000 in total.
Hong Kong imposes a rate ranging from 2 per cent to 17 per cent for salaries tax on a progressive basis. With assessment deducted by HK$100,000, for example, a taxpayer enjoys tax deduction ranging from HK$2,000 to HK$17,000, depending on their total chargeable income.
Taxpayers who are eligible for the tax deduction include infertile couples and persons with specified health conditions, such as those who have to select the sex of embryos to avoid sex-linked genetic diseases.
Patients who may be rendered infertile as a result of chemotherapy, radiotherapy, surgery, or other medical treatment can also enjoy the tax deduction if they receive assisted reproductive services.
Falling fertility rate
Hong Kong, like other developed societies, has seen its fertility rate fall. In 2023, there were 751 births per 1,000 females, compared to 1,125 a decade ago.
Since October 2023, Hong Kong has spent around HK$640 million on a “baby bonus” scheme that hands out a one-off cash bonus of HK$20,000 for each child born to families, part of an initiative to promote childbirth.
Some Hongkongers, however, said the handout was not enough to encourage couples to have children. Critics pointed to insufficient childcare options as well as the high cost of raising a child in the city.
