What are tax deductible voluntary contributions (“TVC”)?
TVC is a new type of contributions under the MPF system. Members with contribution accounts or personal accounts of MPF schemes, or members of MPF Exempted ORSO schemes are all eligible to make TVC.
TVC is an easy and convenient way to save for retirement. Scheme members can open a TVC account under an MPF scheme of their own choice and make TVC directly to the account without going through the employers. Only contributions made to TVC accounts not exceeding the tax deduction cap are tax deductible. Other types of MPF voluntary contributions are not tax deductible.
To facilitate filing of tax returns for scheme members, MPF trustees will provide a contribution summary to TVC account holders every year.
Scheme members can enjoy the flexibility to make TVC to their TVC accounts at any time and in varying amounts. They can also increase or reduce the amount of contributions, or cease to make contributions, or resume the making of contributions at any time, having regard to their personal circumstances. However, same as the MPF mandatory contributions, TVC has to be preserved until the age of 65 (unless exempted on other statutory grounds).
Most MPF schemes offer TVC accounts. The various fund options under the schemes are also available to TVC account holders to choose. From 1 April 2019, the public can visit the TVC webpage or the Trustee Service Comparative Platform in the MPFA’s website (www.mpfa.org.hk) to identify MPF schemes which offer TVC accounts.
20 March 2019