Manager Introduction

What are Tax Deductible Voluntary Contributions (TVC)?

Tax Deductible Voluntary Contributions (TVC) is a new type of contributions under the MPF system. Contributions you make to the TVC account in each tax assessment year will be counted as a deductible item (up to the annual limit as stipulated by the HKSAR Government) when you report your taxable income. Contributions made to TVC accounts exceeding the tax deduction cap and other types of MPF voluntary contributions are not tax deductible.

The deduction cap for the tax assessment year of 2019/2020 is HK$60,000, which is an aggregate limit for both TVC and qualifying deferred annuity premiums. Based on the prevailing highest tax rate (i.e. 17%), the maximum tax savings can reach up to HK$10,200 every year!

All contributions in the TVC account, regardless of tax deductible or not, has to be preserved until the retirement age of 65 (unless exempted on other statutory grounds) before any withdrawal.

Key Features of TVC

Easy

Can choose to open a TVC account with MPF scheme that meets your needs and make contributions directly to the account without going through the employers.

Flexible

Flexible contribution terms, allowing you to increase or reduce the amount of contributions, or adjust the contribution means, according to your own circumstances.

Autonomous

Most MPF schemes offer TVC accounts. The various fund options under the schemes are also available to TVC account holders.

How does TVC differ from other voluntary contributions?

	Employee Voluntary Contributions (EEVC)	Special Voluntary Contributions (SVC)	Tax Deductible Voluntary Contributions (TVC)
Scheme Selection	Chosen by employer	Chosen by member
Payment Method	Via employer payroll	Directly contributed by member to MPF scheme
Payment Flexibility	According to the regular payroll schedule	Can make regular or one off payment
Tax Deductible	N/A		Counted as a deductible item (up to the annual limit as stipulated by the Government)
Withdrawal Conditions	Upon termination of employment	According to own needs	Same condition as MPF Mandatory Contributions

Eligibility for TVC

TVC is one of the efficient ways to save tax, while at the same time increasing your retirement savings. Any person who falls under any one of the following categories may open a TVC account:

a current employee member of an MPF Scheme
a current self-employed member of an MPF Scheme
a current personal account holder of an MPF Scheme;
a member of an MPF exempted ORSO scheme

Each eligible person can only have one TVC account under an MPF Scheme. You may at any time choose to transfer the accrued benefits derived from TVC in lump sum to another MPF Scheme that offer TVC. Transfers from TVC account to contribution account or personal account will not be accepted and you cannot request for partial transfer to any account.

How to enjoy the tax concession of TVC?

Your MPF trustee will provide a TVC summary within 40 days after the end of each tax assessment year, to facilitate you in filling in the relevant information on the tax return if TVC is made by you to the scheme during a year of assessment.

You are responsible for the application of tax deduction and keeping track of how the maximum tax deductible limit is fully utilized. Please note that the tax deductible limit is an aggregate limit for both TVC and qualifying deferred annuity premiums.

For enquiries, call BCT MPF Expert at 2298 9888 or fill in your information in the campaign page, we will get back to you as soon as possible. .