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Tax Deductible Voluntary Contributions (TVC) is a type of voluntary contribution that allows you to save for retirement while you benefit from annual tax deductions and tax savings after you report your taxable income. You can withdraw your TVC funds at the age of 65 or when you meet other statutory grounds for withdrawal.
Get tax deductions of up to HK$ 60,000* per year and up to HK$ 10,200* of tax savings
Increase, decrease or cease contributions as needed to manage your budgets with ease
Switch MPF funds or top up your TVC account through our Mobile or Web Apps
Calculate how much you can save with Tax Deductible Voluntary Contributions (TVC). Simply enter your Annual Salary and the total TVC amount you would like to contribute annually.
HK$ 0.00
Your estimated savings in tax
The calculated estimations provided are for general reference only and are not your actual or final tax payable.
You may wish to speak to a tax advisor to understand your tax deductions and tax savings from TVC, based on your personal circumstances and subject to the tax assessment criteria provided by the Inland Revenue Department (IRD).
More TVC Tax Savings Calculation Examples
Examples of salary tax computation resulting from MPF Mandatory Voluntary Contributions (MC) and Tax Deductible Voluntary Contributions (TVC).
Assumptions:
1. The total incomes listed below were earned by employees for the year of assessment 2023/2024; and
2. The tax savings amounts are calculated based on the allowances and at the progressive rate for the year of assessment 2023/2024.
Single
Monthly salary HK$30,000
| Total annual income (HK$) | 360,000 | |
| Arrangement of MPF contributions | MC only1 | MC + TVC2 |
| Less: deduction for MC (HK$) | 18,000 | 18,000 |
| Less: deduction for TVC (HK$) | N/A | 18,000 |
| Income after deduction(s) (HK$) | 342,000 | 324,000 |
| Less: basic allowance (HK$) | 132,000 | |
| Net chargeable income (HK$) | 210,000 | 192,000 |
| Tax payable (HK$) | 17,700 | 14,880 |
| Tax savings from TVC (HK$) | N/A | 2,820 |
Single
Monthly salary HK$60,000
| Total annual income (HK$) | 720,000 | |
| Arrangement of MPF contributions | MC only1 | MC + TVC3 |
| Less: deduction for MC (HK$) | 18,000 | 18,000 |
| Less: deduction for TVC (HK$) | N/A | 60,000 |
| Income after deduction(s) (HK$) | 702,000 | 642,000 |
| Less: basic allowance (HK$) | 132,000 | |
| Net chargeable income (HK$) | 570,000 | 510,000 |
| Tax payable (HK$) | 78,900 | 68,700 |
| Tax savings from TVC (HK$) | N/A | 10,200 |
Married with 1 child (10 years old)
Monthly salary HK$60,000. Spouse not working
| Total annual income (HK$) | 720,000 | |
| Arrangement of MPF contributions | MC only1 | MC + TVC3 |
| Less: deduction for MC (HK$) | 18,000 | 18,000 |
| Less: deduction for TVC (HK$) | N/A | 60,000 |
| Income after deduction(s) (HK$) | 702,000 | 642,000 |
| Less: married person’s allowance | 264,000 | |
| Less: child allowance | 120,000 | |
| Net chargeable income (HK$) | 318,000 | 258,000 |
| Tax payable (HK$) | 36,060 | 25,860 |
| Tax savings from TVC (HK$) | N/A | 10,200 |
Source: Inland Revenue and MPF Schemes Legislation (Tax Deductions for Annuity Premiums and MPF Voluntary Contributions) (Amendment) Bill 2018 gazetted - File Ref: INS/2/18C https://www.legco.gov.hk/yr18-19/english/bills/brief/b201812071_brf.pdf
1. The employee MPF MC is taken to be 5% of the employee’s monthly income, with a monthly maximum contribution limit set at HK$1,500.
2. For simplifying the examples, TVC is taken to be 5% of the employee’s monthly income, with a monthly maximum contribution limit set at HK$1,500.
3. To enjoy maximum tax concession of HK$10,200*, TVC is taken to be maximum tax-deductible limit of HK$60,000* Meanwhile, the employee didn’t apply for the Qualified Deferred Annuity Plan.
*This is the maximum tax concession amount in the year of assessment 2023/2024
Note: The above illustrative examples are for reference only and does not constitute any form of advice.
Who can apply for a TVC account
You are eligible to apply for a Sun Life MPF TVC Account if you are currently:
How to manage your TVC Account
You can top up your TVC account, manage your contributions, switch fund assets and update your personal information online.
Simply use the following Sun Life Channels:
Online Pension Services Centre
Sun Life MPF Mobile App (App Store)^
Sun Life MPF Mobile App (Google Play)^
* If you are in Canada, United States, or European Union countries and unable to download the mobile app, you can still view the details via Online Pension Services Centre
You may send any of these completed forms to our office address by post.
Scheme Member’s Request for Transfer of Tax Deductible Voluntary Contributions
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.
Tax concessions on TVC starts from 1 April 2019. Eligible persons can claim deductions when you fill in the tax return for the year of assessment 2023/2024 for your TVC made from 1 April 2023 to 31 March 2024
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 cap for the year of assessment 2023/2024 is HK$60,000*, which is an aggregate limit for TVC and qualifying annuity premium.
If you have more than one TVC account, the maximum tax deduction cap 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.
| Employee Voluntary Contributions (EEVC) | Special Voluntary Contributions (SVC) | Tax Deductible Voluntary Contributions (TVC) | |
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*This is the maximum tax concession amount in the year of assessment 2023/2024
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 Tax Deductible Voluntary Contributions" (Form MPF(S)-P(T)) and then send it to your new scheme trustee, the form can be obtained from MPF trustee or MPFA.
To meet the purpose of encouraging extra savings for retirement, TVC will be subject to the same preservation requirements of mandatory contribution. 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 mandatory contribution. You should submit the completed claim form to your MPF trustee and provide the supporting documents required.
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, your TVC will be invested according to the Default Investment Strategy for your investment.
The current tax deductions for mandatory contributions will not be affected by the implementation of TVC. The existing maximum amount deductible for mandatory contributions (HK$18,000) will not be affected after the implementation of TVC.
Useful Forms & Documents Download
Investment involves risks and past performance is not indicative of future performance. Investment return may rise as well as fall due to market condition and currency movement which may affect the value of investments. The value of units may vary due to changes in exchange rates between currencies. Emerging markets may involve a higher degree of risk than in developed markets and are usually more sensitive to price movements.
Issued by Sun Life Hong Kong Limited (Incorporated in Bermuda with limited liability)
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