QDAP + TVC Tax Deduction Calculator

In Hong Kong, Salaries Taxpayers can obtain additional tax deductions through a Qualifying Deferred Annuity Policy (QDAP) and MPF Tax Deductible Voluntary Contributions (TVC). The combined annual deduction ceiling is HK$60,000. For taxpayers at the 17% marginal tax rate, this can save up to HK$10,200 in tax per year. These are popular tax-saving tools for employees.

QDAP is a long-term annuity product that must meet the eligibility criteria prescribed by the Insurance Authority, such as a minimum premium payment period of five years and a minimum annuity payment period of ten years. TVC is an additional contribution paid into your MPF account, with flexible contribution amounts and frequencies; the money is invested under the MPF scheme and accumulates until retirement. Each has its own features: QDAP provides stable retirement income, while TVC is more flexible and can be invested in different funds.

HK FinBox's QDAP + TVC tax deduction calculator lets you enter annual salary, QDAP premiums, TVC contributions and other deductions to automatically calculate the deductible amount, tax saved and \"real out-of-pocket cost after tax deduction\". The calculator assesses your marginal tax bracket under the progressive tax rates to help you decide whether it is worth using the full deduction ceiling.

Not everyone is suited to QDAP or TVC. If your annual income is below the basic allowance, the tax deduction benefit is limited. If you have ample cash flow and want to save extra for retirement, both tools combine tax savings with retirement savings. Before buying, compare the fees, returns and terms of different plans, and avoid choosing a product just for the tax deduction if it does not suit you.