Tax deductible voluntary contributions ("TVC") is a new form of MPF contributions through which you can save more. Any contributions you make to a TVC account will be treated as a deductible item (up to an annual limit of HKD60,000, which is an aggregate limit for both TVC and other qualifying annuity premiums) when you report your taxable income. The balance of your TVC account will be available for withdrawal when you retire at 65, or when you meet other withdrawal conditions which are the same as your mandatory contributions.
You are eligible to contribute to a TVC account under MPF if you are currently a holder of an employee account, self-employed account or personal account of any MPF scheme or if you are a member of an MPF exempted ORSO scheme.
With TVC account, you can:
Save More and Reduce Your Tax Burden
Let the Government help you to build up your retirement pot!
Have Flexibility in Your Saving Plan
With TVC, you have the flexibility to contribute as much or as little1 as you wish, and at any time you want.
Take Control
With TVC, you take control on how you invest your money to make the best out of it.
Enjoy Further Savings
Receive up to HKD4,500 of bonus unit rebates2 from Hang Seng MPF when you open a TVC account with us and make contributions.
The actual tax savings depend on your personal circumstances. The table below provides an illustration of how much tax you may save under different levels of contributions in TVC during a tax assessment year3.
Illustration of potential tax savings with different levels of TVC
| TVC (HKD) | Assuming your progressive tax rate is | ||||
|---|---|---|---|---|---|
| 2% | 6% | 10% | 14% | 17% | |
| 2,500 | 50 | 150 | 250 | 350 | 425 |
| 5,000 | 100 | 300 | 500 | 700 | 850 |
| 10,000 | 200 | 600 | 1,000 | 1,400 | 1,700 |
| 30,000 | 600 | 1,800 | 3,000 | 4,200 | 5,100 |
| 60,000 |
 maximum tax savings up to maximum tax savings up to |
10,200 | |||
* The above figures are for illustrative purposes only and are not a guarantee on how much tax you will save by contributing to TVC. The actual tax savings depend on your personal circumstances. You are advised to exercise caution in relation to tax matters and above figures. If you are in doubt about your own tax status, you should obtain independent professional advice.