Qualified Deferred Annuity QDAP 2027 Calculator HK
QDAP premiums are tax-deductible up to HKD 60,000/year (combined cap with TVC) under Hong Kong salaries tax. This 2027 calculator works out your annual tax saving, projects the guaranteed and non-guaranteed annuity income at age 65, and compares against pure investment in a balanced fund. Built for Hong Kong taxpayers aged 18 to 60.
Max HKD 60K deductible (shared with TVC).
Minimum 5 years per QDAP rules.
Cap is HKD 60K combined QDAP + TVC.
Minimum 50 per QDAP rules.
What Is a QDAP in 2027
A Qualifying Deferred Annuity Policy (QDAP) is a Hong Kong Insurance Authority-certified life-insurance product designed for retirement income. To qualify for the salaries tax deduction, the QDAP must have: (1) minimum total premium of HKD 180,000; (2) minimum premium payment period of 5 years; (3) minimum annuity period of 10 years; (4) commencement of annuity payments at age 50 or later. The premium deduction cap is HKD 60,000/year combined with MPF Tax-Deductible Voluntary Contributions (TVC). Last updated: 2026-05-18. Source: Insurance Authority QDAP register, IRD.
Worked Example — HKD 60,000/Year for 5 Years
A 35-year-old earning HKD 800,000 pays HKD 60,000/year for 5 years (HKD 300,000 total) into a QDAP scheduled to pay from age 65. With no other TVC contributions, the full HKD 60,000 is deductible. At the 17% marginal rate, annual tax saving = HKD 10,200. Across 5 years, total tax saved = HKD 51,000. The effective cost of the HKD 300,000 invested becomes HKD 249,000. At age 65, the QDAP pays approximately HKD 2,500–3,500/month guaranteed plus a non-guaranteed top-up depending on insurer dividend declarations, for the 10–20 year annuity period.
QDAP vs TVC vs Pure Investment
Three retirement options for the same HKD 60,000/year top-up: (1) QDAP — tax deduction + insurance protection + guaranteed annuity. IRR around 2.0–2.5% on the guaranteed leg. Capital is locked. (2) TVC — tax deduction + MPF fund choice. IRR depends on fund choice (3.6% industry average net). Locked until 65. (3) Pure investment in an ETF — no tax deduction, full liquidity, expected IRR 5–7%. QDAP wins for risk-averse savers in the 14–17% bracket who want a known income stream. Active investors prefer ETF; balanced savers split 50/50 QDAP + TVC.
2027 Best Practices for Choosing a QDAP
Five evaluation criteria from the Insurance Authority: (1) Premium term — choose 5 years if cash-rich, 10 years for moderate budgets. (2) Annuity period — 10 years for max monthly payout, 20 years for longevity protection. (3) Currency — HKD-denominated avoids FX risk. USD policies may carry higher IRR but expose you to HKD/USD volatility. (4) Insurer rating — choose insurers rated A or above by S&P, Moody's, AM Best. (5) Surrender values — check the guaranteed cash value tables at year 5, 10, 15 in case of emergency surrender. Early termination typically forfeits 80%+ of premiums in year 1, recovering by year 8–10.