The Bank of East Asia

Insurance, MPF & Trust

 

BEA (MPF) Tax Deductible Voluntary Contribution Account

What are Tax Deductible Voluntary Contributions (“TVC”) ?

TVC is a new type of contributions which can only be paid into the TVC accounts of MPF schemes. TVC is eligible for tax concessions starting from the year of assessment 2019/2020. The maximum tax-deductible amount for the year of assessment 2019/2020 is HK$60,000. This is an aggregate limit for both TVC and other qualifying annuity premiums.

 

Features of TVC

  • Tax concession of up to HK$60,000 for year of assessment 2019/2020
  • Involvement of employers not required
  • TVC is subject to the same vesting, preservation, and withdrawal restrictions that apply to mandatory contributions

 

Eligibility

  • Employee members of MPF schemes; or
  • Self-employed person members of MPF schemes; or
  • Personal account holders of MPF schemes; or
  • Members of MPF exempted ORSO schemes

Each eligible person can only have one TVC account under an MPF scheme.

The Trustee may reject any application to open a TVC account in the event of (i) having reason to know that information and documents provided to the Trustee are incorrect or incomplete; (ii) failure of applicants to provide information and documents as required by the Trustee to ensure compliance with applicable laws and regulations relating to anti-money laundering or tax reporting; and/or (iii) other circumstances which the Trustee and the Sponsor may consider appropriate.

For risk management and compliance purposes, there could be circumstances (such as (i) to (iii) in the preceding paragraph) that TVC may be rejected. Any rejected TVC (with no interest) will be refunded within 45 days of receipt of any such TVC unless for some exceptional regulatory reasons the Trustee is unable to effect a refund within such timeframe.

 

Tax Concession Arrangement in TVC

Each tax payer is responsible for applying for tax deductions and making the fullest use of the maximum tax-deductible limit. To facilitate the tax return filing by TVC Account Holders, the Trustee will provide a TVC summary to each TVC Account Holder if TVC is made by him/her during a year of assessment. Such summary will be made available around 10th May after the end of the relevant year of assessment (i.e. before the end of a period of 40 days (unless the 40th day is not a Business Day, then the next Business Day) from the beginning of the next tax assessment year commencing on 1stApril).

 

Additional Notices

Termination

The Trustee may terminate the Member’s TVC account if:

    1. the balance of the TVC account is zero; and
    2. there is no transaction activity in respect of the TVC account for 365 days.

Contributions

The protection of accrued benefits under the MPF Ordinance is not applicable to the TVC account, meaning that accrued benefits derived from TVC will generally be vested in the trustee-in-bankruptcy or official receiver as part of the property of a bankrupt TVC Account Holder.

 

Different types of voluntary contributions

Additional Voluntary Contributions ("AVC"), Special Voluntary Contributions ("SVC"), and TVC are additional contributions which can be made under the MPF System, but they vary considerably in terms of account opening, contribution arrangements, and other details:

 AVCSVCTVC

How to open an account

You open an account under the MPF scheme chosen by your employer.

You select your own trustee and liaise with the trustee to open an account.

You select your own trustee and liaise with the trustee to open an account.

Contribution arrangements
  • The amount you contribute is calculated on the basis of your income.
  • You have to make regular contributions of a fixed amount.
  • You make contributions to the trustee via your employer.
  • The amount you contribute does not need to be calculated on the basis of your income.
  • You decide how much contribution to make for your SVC account.
  • You make contributions to the trustee by yourself.
  • The amount you contribute does not need to be calculated on the basis of your income.
  • You decide how much contribution to make for your TVC account.
  • You make contributions to the trustee by yourself.

Withdrawing or transferring MPF benefits

You can withdraw or transfer your MPF benefits only after ceasing employment.
  • You can withdraw or transfer your MPF benefits anytime.
  • Minimum withdrawal amount: HK$5,000.
  • No. of withdrawal request: No Limit.
  • You can transfer your TVC benefits to another MPF scheme that offers TVC in whole anytime. (Such transfer cannot be claimed as deductions for taxation purposes)
  • Withdrawal is allowed upon statutorily permissible grounds (including retirement at age 65, early retirement at age 60 and ceased all employment/self-employment with no intention of becoming employed/self-employed again, total incapacity, terminal illness, and permanent departure from Hong Kong, death, and small balance.)

Tax Deductible

No

No

Yes

Investment involves risk and the account balance of TVC may go up and down. Your investment decision should not be based on
information on this website alone.

For more detailed information on TVC, please download our offering document or look through our FAQs. To make tax deductible voluntary contributions, please complete the TVC Application Form and return to any BEA branch or MPF Administration Centre.


Useful Documents and Leaflet

 BEA (MPF) Master Trust SchemeBEA (MPF) Value
Scheme		BEA (MPF) Industry Scheme
Enrolment
Member - Participation Agreement (Tax Deductible Voluntary Contribution Account "TVC") TR209
(Fillable Format)		 TR211
(Fillable Format)		 TR210
(Fillable Format)
> For online enrolment BEA MPF Online Enrolment Platform  (User Guide)
Contribution
Member - Application / Cancel Direct Debit Authorisation For Contributions TR215
Member - Irregular Contribution Form TR216
 Leaflet
Tax Deductible Voluntary Contribution Account Leaflet MPF0083

 

MPF Scheme Brochure

 

Key Scheme Information Document

 

Frequently Asked Questions


Enquiry

 

MPF Administration Centre
  32nd Floor, BEA Tower, Millennium City 5,
  418 Kwun Tong Road, Kwun Tong,
  Kowloon, Hong Kong
  Service Hours:   Monday to Friday 9:00 a.m. to 5:45 p.m.     
      (Except Public Holiday)

 

BEA (MPF) Hotline

(Operated by Bank of East Asia (Trustees) Limited)
  Tel:   (852) 2211 1777
  Facsimile:   (852) 3608 6003
  Email:   BEAMPF@hkbea.com  
  Service Hours:   Monday to Friday 9:00 a.m. to 6:00 p.m.
      Saturday 9:00 a.m. to 1:00 p.m.
      (Except Public Holiday)