Hang Seng MPF To pay less tax is everyone's dream... That has now come true! Make tax deductible voluntary contributions to enjoy potential tax savings*^ and bonus unit rebates*! View details *Investment involves risks.  Terms and conditions apply ^The actual tax savings depend on your personal circumstances

MPF and You
What is tax deductible voluntary contributions (TVC)?
 
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TVC is a new and special contribution under MPF where you can contribute into. Contributions you make to the TVC account may be counted as a deductible item when you report your taxable income.(the maximum tax deductible amount is HK$60,000 for a tax assessment year, which is an aggregate limit for both TVC and other qualifying annuity premiums). This tax incentive is only applicable to Hong Kong taxpayer. 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.

 

The main characteristics of TVC are as follows:

 

  1. In general, if you are eligible to join a Registered Scheme or if you are a current scheme member of an MPF exempted ORSO scheme, you may open a TVC account. You can find the detailed eligibility requirements here
  2. Involvement of employers is not required
  3. You may contribute either regularly or as lump sums
  4. Balance of TVC account is subject to the same vesting, preservation and withdrawal restrictions applicable to mandatory contributions

  

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Contribution of TVC
 
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TVC can only be made into a TVC account, which is separated from a contribution account or a personal account. Any other forms of voluntary contributions that are not made into the TVC account are not TVC (for example, voluntary contributions that are made by employees through their employer will not be eligible for claiming TVC tax deduction).

TVC is subject to the same vesting, preservation and withdrawal restrictions applicable to mandatory contributions. This also applies to contributions that exceed the maximum tax deductible amount per tax assessment year.

 

TVC will be fully vested to you once it is paid into the Hang Seng Mandatory Provident Fund – SuperTrust Plus. You can make regular TVC monthly from as little as HK$300, or simply by paying a lump sum of HK$1,000 or more at the time of your choice.

For the avoidance of doubt, the protection of accrued benefits under the Mandatory Provident Fund Schemes Ordinance is not applicable to the TVC account, meaning that accrued benefits derived from TVC will generally be vested in the trustee-in-bankruptcy or official receiver as part of the property of the bankrupt TVC account holder.

You can make your own investment choices or choose to invest in the Default Investment Strategy (DIS) under the Hang Seng Mandatory Provident Fund – SuperTrust Plus according to your risk tolerance level and financial circumstances. If your fail to submit to Hang Seng MPF a valid specific investment instruction or does not make any investment choice at the time of TVC account opening, your TVC will be invested in the DIS. Please refer to the sub-section 'MPF Default Investment Strategy' in the MPF Scheme Brochure for details of the DIS arrangement. 

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Should I contribute to TVC?
 
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TVC is a tax-efficient way to save more for your retirement. You shall consider contributing TVC if you want to:

 

  1. Save more and reduce your tax burden – let the Government help you to build up your retirement pot!
  2. 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.
  3. Take control – with TVC, you take control on how you invest your money to make the best out of it.
  4. Enjoy further savings – may receive bonus rebates from Hang Seng MPF when you contribute to Hang Seng MPF’s TVC. (see details here)

1 Subject to minimum of HK$300 per month for regular contributions, or HK$1,000 for lump sum contributions

 

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Am I eligible to make TVC?
 
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Any person who falls under any one of the following categories may open a TVC account:

  1. an employee member of an MPF scheme;
  2. a self-employed member of an MPF scheme;
  3. a personal account holder of an MPF scheme;
  4. a member of an MPF exempted ORSO scheme

Each eligible person can only have one TVC account under an MPF scheme.

 

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What are the differences among employment related voluntary contributions, Flexi-Contributions and TVC?
 
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TVC is one of the three ways that you may contribute more to your MPF voluntarily.  Key differences of them are described below.

 

Employee Voluntary Contributions

Flexi-Contributions

TVC

Contribution method

via employer payroll

directly from you

directly from you

Contribution frequency

usually regularly

regularly or lump sum

regularly or lump sum

Tax-deductible

x

x


Withdrawal conditions

usually at termination of employment

anytime*

same condition as MPF mandatory contributions

* Subject to the prevailing terms and conditions set by the MPF provider

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Tax deduction for TVC
 
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Starting from 1 April 2019, contributions to a TVC account may be deducted from your taxable income when you report your Hong Kong Salaries Tax/ Personal Assessment. Since the tax assessment year 2019/2020, the maximum tax deductible amount is HK$60,000 for a tax assessment year, which is an aggregate limit for both TVC and qualifying annuity premiums. If the account holder has made TVC and paid premiums for qualifying annuity in the same tax assessment year, tax deduction will be applied to the TVC first. Any remaining amount will then be used for tax deduction on qualifying annuity premiums. This tax incentive is only applicable to Hong Kong taxpayer.

The actual tax savings depend on your own circumstances. The following table provides an illustration on how much you may save in tax with different levels of contributions in TVC during a tax assessment year1.

 

Illustration of potential annual tax savings for individuals with different levels of TVC and tax brackets (assuming the maximum total tax deductions for TVC and qualifying annuity premiums for the applicable tax assessment year is HK$60,000)

 

TVC contributions(HK$)

Assuming your top 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 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 own 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.

1 A tax assessment year runs from 1 April to 31 March of the following year. Assumes payment of TVC will not change the progressive tax rates.

To facilitate the tax deduction claim under your Salaries Tax/ Personal Assessment, Hang Seng MPF will provide you with a TVC summary around 10 May after the end of the each year of assessment (i.e. before the end of a period of 40 days (unless the 40th day is not a business day, then the next business day) from the beginning of the next tax assessment year commencing on 1 April). Like tax deduction for mandatory contributions, you are responsible for claiming your tax deduction in your Salaries Tax/ Personal Assessment 
and keeping track of when the maximum tax deductible amount is fully utilised. If you are in doubt of your tax position, please consult your own advisor.

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Additional voluntary contributions, Flexi-Contributions and tax deductible voluntary contributions are accepted at the discretion of the Trustee. The Trustee reserves the absolute right not to accept any additional voluntary contributions, Flexi-Contributions and tax deductible voluntary contributions at any time.

 

The information shown on this webpage is for illustrative purposes only. The tax incentives mentioned in the webpage are only available to Hong Kong taxpayers. The actual tax deductible and/or saving amount depends on the personal circumstances, which may be different from the amounts shown on this webpage. It is not intended to provide any form of tax advice. Hang Seng Bank Limited does not provide tax advice. You are advised to exercise caution in relation to tax matters and this webpage. If you are in doubt about any of the contents of this webpage, you should obtain independent professional advice. Please note that the tax law, regulations and/or interpretations are subject to change and may affect any related tax incentives including the eligibility criteria for a tax deduction. Hang Seng Bank Limited is not responsible for informing you about any changes in laws, regulations or interpretations, and how they may affect you.

 

Investment involves risks. Past performance is not indicative of future performance. The value of financial instruments, in particular stocks and shares, and any income from such financial instruments, may go down as well as up. For further details including the product features and risks involved, please refer to the MPF Scheme Brochure.

 

The information contained in this page is for reference only and the provisions of the Mandatory Provident Fund Schemes Ordinance, other applicable legislation/regulations and guidelines or announcements published by the Mandatory Provident Fund Schemes Authority shall prevail.

Contact Us

Hang Seng MPF Hotline Make an e-Appointment
Existing MPF Customers Make a reservation online and meet with our MPF Specialists at designated branches
- Employers: 2288 6822
- Members / Self-employed persons: 2213 2213
- HKSARG Employees: 2269 2269
Non-existing MPF Customers
- Enquiries / Apply for Hang Seng MPF: 2997 2838