Hong Kong MPF TVC 2027 Tax Deduction Calculator

Hong Kong's MPF Tax-Deductible Voluntary Contribution (TVC) lets you contribute additional funds to your MPF and claim a salaries-tax deduction of up to HKD 60,000/year. This cap is shared with Qualifying Deferred Annuity Policy (QDAP) premiums — so total combined deduction is HKD 60,000. At the standard 15% rate (or progressive rate, whichever is lower), max savings reach HKD 9,000/year, plus your contribution grows tax-free inside MPF until age 65.

How TVC and QDAP Share the Cap

The HKD 60,000 annual deduction is shared. If you pay HKD 25,000 in QDAP premiums, you can only deduct HKD 35,000 in TVC for that year. Most retail buyers maximize one or the other. TVC advantages: full investment control (you pick MPF fund mix), lower fees on most platforms, no insurance-product lock-in beyond 65. QDAP advantages: structured annuity income from age 50-60 onwards, principal guarantee on most products. For pure tax-efficiency with low fees, TVC typically wins. For guaranteed retirement income, QDAP serves a niche.

Withdrawal and Lock-Up Rules

TVC contributions are preserved in your MPF until age 65 — same lock-up as mandatory contributions. Withdrawal before 65 is permitted only for: terminal illness (life expectancy ≤ 12 months), total incapacity, permanent emigration from Hong Kong (one-time only), or death (paid to beneficiary). Permanent emigration is the common early-withdrawal route — requires statutory declaration plus residence documents abroad. All withdrawals (lump sum or instalment) are tax-free in Hong Kong. Note: if you re-establish HK residence after emigration withdrawal, you cannot withdraw again under the emigration provision.

Last updated May 2026. Sources: MPFA, IRD Hong Kong.