Private health insurance deductible in principle

The private health insurance, the only short-term chance of an improvement in the medical services and medical staff incomes, is to become legal soon. The Finance Ministry acknowledges the expenses on private medical insurance as deductible effective this year, which gives significant edge to those insurers that have already included such products in their portfolios. “In principle, even the premiums paid for the life insurance products under the current system may be acknowledged as deductible expenses for the fiscal 2004, as the Fiscal Code has no restrictions in this regard. Formally speaking, we need a list to specify the exact types of insurable conditions, a list that will come out at the same time as the law on the private medical insurance,” high-ranking Finance Ministry sources told Ziarul Financiar. The Fiscal Code says the private medical insurance expenses are deductible up to 200 euros a year employee-wise (when the global income tax is calculated) and 200 euros employer-wise (when the profit tax is calculated). The only reference to the medical insurance in the enforcement guidelines of the Code is that binding taxpayers to add a copy of the insurance contract and the receipts proving they paid the insurance premiums to the tax return. ZF