MPF Tax-Deductible Voluntary Contributions (TVC) Guide
TVCs are deductible up to HK$60,000 per year of assessment (combined with QDAP premiums), saving up to about HK$10,200 at the 17% top progressive rate; the money is generally preserved until 65.
Last updated: 2026-10-21
What is a TVC?
A TVC is the only type of MPF voluntary contribution that is tax-deductible. From 2019/20 the annual cap is HK$60,000 per taxpayer, an aggregate limit shared with qualifying deferred annuity policy premiums. Contributions go into a TVC account and are subject to the same preservation rules as mandatory contributions (generally withdrawable only at 65 or on other statutory grounds).
How is the tax saving calculated?
Salaries tax is the lower of progressive rates on net chargeable income (2% on the first HK$50,000, then 6%, 10%, 14% on each next HK$50,000, 17% on the remainder) and the standard rate on net income (15% on the first HK$5m, 16% above). A TVC is a deduction, so the saving depends on your marginal rate — up to about 17% of the deduction (HK$10,200). Examples below ignore any one-off tax reduction.
Trade-offs: facts to know
• Money is locked in until 65 unless a statutory early-withdrawal ground applies.
• The tax deduction is certain, but the funds the TVC is invested in can rise or fall.
• Contributions must be made within the year of assessment (1 April to 31 March) to count for that year.
Worked examples (single, basic allowance HK$132,000 only, HK$60,000 TVC)
| Annual income | Tax without TVC | Tax with TVC | Saving |
|---|---|---|---|
| HK$300,000 | HK$9,420 | HK$3,580 | HK$5,840 |
| HK$600,000 | HK$58,500 | HK$48,300 | HK$10,200 |
| HK$1,200,000 | HK$160,500 | HK$150,300 | HK$10,200 |
Assumptions: mandatory contribution deduction 5% of income (capped at HK$18,000); excludes tax reductions and other deductions. Mathematical illustration only.
TVC tax calculator · Funds available for TVC · MPFA TVC information · Tax rates (GovHK)
FAQ
What is the maximum TVC deduction?
HK$60,000 per year of assessment, combined with qualifying deferred annuity premiums.
What is the maximum tax saving?
About HK$10,200 at the 17% top progressive rate; the actual amount depends on income, deductions and allowances.
Can I withdraw a TVC anytime?
No. TVCs are preserved, generally until age 65.