MPF Tax Deductible Contribution is a new type of contribution (TVC) created by the government to encourage the public to save early for retirement. The aggregate annual tax-deductible limit is $60,000 for the qualifying deferred annuity premium and MPF tax deductible contribution, and the policy owner may claim deductions under salaries tax or personal assessment. Based on the prevailing highest tax rate (i.e. 17%), the maximum tax savings can reach $10,200.

Taxpayers who wish to make TVC could open a TVC account with an MPF trustee of their choice and make TVC directly to the account without going through the employers.

TVC can only be withdrawn upon scheme member’s reaching age 65 (or on other statutory grounds) since it is subjected to tax benefits.

Beside tax benefits, some MPF trustees will offer bonus unit rebates promotion periodically to encourage TVC account opening and consolidation. Please contact us if you would like to get more information.

The following table provides examples of potential annual tax savings for individuals with different income and tax brackets calculated as of 15 February 2022(Assuming the person is only entitled to basic allowance, married person’s allowance, child allowance and tax deductions from MPF mandatory contributions).