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
   

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. 

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)
   

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.

TVC is one of the three ways that you may contribute more to your MPF voluntarily.  Key differences of them are described below.

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

Starting from 1 April 2019, contributions to a TVC account may be deducted from your taxable income when you report your Hong Kong personal income tax. 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)

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 personal income tax filing, 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 personal income tax return 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.