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FAQ

MPF System

Tax Deductible Voluntary Contribution

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1. What is Tax Deductible Voluntary Contribution (TVC)?
TVC is a simple, convenient and flexible arrangement for retirement savings. Eligible persons can open TVC accounts in any MPF schemes which offer such accounts, and make contributions directly to the accounts. TVC can enjoy tax deductions.
2. Who are eligible to make TVC?
The following persons are eligible to open a TVC account in an MPF scheme:
(a) Holders of contribution accounts or personal accounts of MPF schemes; or
(b) Members of MPF Exempted ORSO Schemes.
3. How can I benefit from the tax concessions?

You can open a TVC account and make contributions directly to the account. You can then enjoy tax deduction under salaries tax or tax under personal assessment for your TVC.

 

The maximum tax deduction amount per year (i.e. from 1 April to 31 March of the following year) is $60,000 which is an aggregate limit for TVC and qualifying deferred annuity policies premiums.

 

If you have more than one TVC account, the maximum tax deduction amount applies to the total amount of contributions of all of your TVC accounts.

 

To facilitate your filing of tax return, MPF trustee will provide a TVC contribution summary to you each year.

4. Will the tax deductions for mandatory contributions be affected after the implementation of TVC?
The current tax deductions for mandatory contributions will not be affected by the implementation of TVC.
5. Will all MPF schemes offer TVC accounts?
Majority of the master trust schemes would offer TVC accounts. You can call MPFA hotline 2918 0102 or refer to Trustee Service Comparative Platform in the MPFA’s website to check the MPF schemes which offer TVC accounts.
6. Can I transfer my TVC to other MPF schemes?

You can transfer all balance in a TVC account to another TVC account under a different scheme at any time.

 

If you wish to transfer the balance in a TVC account to another MPF scheme, all you need to do is to fill in the "Scheme Member's Request for Transfer of TVC" (Form MPF(S)-P(T)) and then send it to your new scheme trustee. The form can be obtained from your trustee or downloaded here.

7. How can I withdraw my TVC?

To meet the purpose of encouraging extra savings for retirement, TVC will be subject to preservation requirements. You can only withdraw TVC account balance upon reaching 65 years of age, or on other statutory grounds. Contributions exceeding the tax deduction cap cannot be withdrawn early either.

 

Withdrawal arrangement of TVC is the same as that of other MPF contributions. You should submit the completed claim form to your MPF trustee and provide the supporting documents required.

8. I am currently making voluntary contributions. Will the contributions become tax deductible automatically?
If you wish to benefit from tax deductions under salaries tax or personal assessment, you must put the TVC in a TVC account. Your voluntary contributions made to your existing contribution account are not TVC and such contributions are not tax deductible.
9. Can I have more than one TVC account?
You can only have one TVC account in an MPF scheme, but you may have more than one TVC account in more than one MPF scheme.
10. How will the TVC be invested?
Similar to other types of contributions, you have the right to choose the constituent funds offered by the MPF scheme. If you have not given any investment instructions when opening TVC account, your TVC will be invested according to the Default Investment Strategy.
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