5. I have to maintain my two parents. Under what circumstances can I claim the “dependent parent allowance” or the additional dependent parent allowance”?

5. I have to maintain my two parents. Under what circumstances can I claim the “dependent parent allowance” or the additional dependent parent allowance”?

Under section 30 and section 30A of the Inland Revenue Ordinance, a taxpayer is eligible to claim a dependent parent/grandparent allowance (of $40,000 each) if the taxpayer or his/her spouse (not being a spouse living apart) maintain his/her own parents/grandparents or the spouse's parents/grandparents, who at any time in the year of assessment:

• were ordinarily resident in Hong Kong; and
• were aged 60 or more, or being under the age of 60, were eligible to claim an allowance under the Government's Disability Allowance Scheme; and
• had either resided with the taxpayer and his/her spouse, otherwise than for full valuable consideration, for a continuous period of not less than 6 months, or had received from the taxpayer or his/her spouse not less than $12,000 in money towards the maintenance.

Taxpayers are eligible to claim an additional dependent parent/grandparent allowance (of $40,000 each) in respect of each dependent parent/grandparent who resided with them, otherwise than for full valuable consideration (i.e. without any payment or compensation), continuously throughout the year of assessment.

For the year of assessment 2015/16 onwards, a new dependent parent/ grandparent allowance is also granted to taxpayers maintaining dependent parents/grandparents who do not attain the age of 60 in the year of assessment, but on condition that the dependants:

• are aged 55 or more but are under the age of 60 at any time during the year of assessment; and
• are not eligible to claim an allowance under the Government's Disability Allowance Scheme throughout the year of assessment; and
• are ordinarily residents in Hong Kong; and
• have either resided with the taxpayers, otherwise than for full valuable consideration, for a continuous period of 6 months or have received from them or their spouses not less than $12,000 each in money towards their maintenance.

A new additional dependent parent/grandparent allowance will also be granted if the dependant has resided with the taxpayer, otherwise than for full valuable consideration, continuously throughout the year of assessment. The rates of these two new allowances are $20,000 respectively.

"Parent" refers to:

• the natural father/mother of the taxpayer or his/her spouse; or
• a parent by whom the taxpayer or his/her spouse was legally adopted; or
• a step-parent of the taxpayer or his/her spouse; or
• a parent of the deceased spouse of the taxpayer.

"Grandparent" refers to:

• a natural grandfather/grandmother of the taxpayer or his/her spouse; or
• an adoptive grandparent of the taxpayer or his/her spouse; or
• a step-grandparent of the taxpayer or his/her spouse; or
• a grandparent of the deceased spouse of the taxpayer.

Only one person can be granted an allowance in respect of any one parent or grandparent. If more than one person is entitled to the allowance in respect of the same parent or grandparent, they must agree among themselves as to who shall claim the allowance.

In respect of the same dependant, you can claim either the dependent parent allowance or the or elderly residential care expenses, but not both.