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Data checked · 2026-08-20Deduction, not a refund

QDAP + TVC Tax Deduction Calculator

Qualifying deferred annuities and MPF TVC share a HK$60,000 annual deduction cap. That reduces assessable income; it is not a HK$60,000 refund.

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Earnings and Tax Deduction Information

HK$ 600,000
HK$ 0
HK$ 0
HK$ 0

• QDAP and TVC are subject to a maximum deduction cap of HK$60,000 per annum.

• Must be a qualified deferred annuity policy and MPF TVC scheme approved by the Inland Revenue Department.

• If both TVC and QDAP are paid in the same year, Inland Revenue allows TVC first.

Estimated annual tax savings

HK$0

This is tax saved because assessable income falls, not a cash refund of HK$0. IRD allows TVC first (HK$0), then QDAP (HK$0). Room left HK$60,000.

Total Tax Deduction

HK$0

TVC HK$0 then QDAP HK$0

Real input costs

HK$0

Room left under HK$60,000

HK$60,000

Marginal tax rate

0%

Tax before deduction

HK$59,350

Tax after deduction

HK$59,350

Annuity + TVC input

HK$0

Not counting other deductions

RecommendationsRoom left under the HK$60,000 cap is HK$60,000. Filling it only helps if you already want the retirement product and can lock the money.

QDAP and TVC share a HK$60,000 deduction, not a refund

Qualifying deferred annuity premiums (QDAP) and tax-deductible MPF voluntary contributions (TVC) share one annual deduction ceiling of HK$60,000. That figure reduces assessable income. It is not a HK$60,000 cash refund. Ordinary voluntary MPF contributions are not automatically TVC.

If both are paid and the total exceeds HK$60,000, Inland Revenue allows TVC first and then any remaining room for QDAP. Amounts above the ceiling may still be paid, but they are not deducted in the same year of assessment on this page. Cooling-off refunds reduce the deductible premium.

The calculator uses the basic allowance and takes the lower of the progressive and two-tier standard-rate calculations. Married joint assessment, other allowances, couple allocation of premiums and provisional tax are not included. If income is already below the basic allowance, extra QDAP or TVC usually saves no salaries tax now.

A QDAP policy also has a term, surrender terms and guaranteed versus non-guaranteed returns. The annuitant generally needs a Hong Kong identity card. Check the product and the TVC account before locking money for a deduction. The Inland Revenue assessment remains decisive.

Data status

Year of assessment 2026/27

Last checked2026-08-20
Official basis

Tax rates, allowances and deduction caps follow published Inland Revenue Department information.

Planning assumptions

Income, deductions and household circumstances are user inputs; the result is an estimate, not an assessment.

Not included

Does not cover every eligibility condition, cross-border income, double-tax relief, provisional-tax adjustments or IRD discretion.

Latest update

2026-08-20: Added the HK$100,000 self-education cap and HK$100 donation minimum, and rechecked the deduction breakdown.

References

FAQs

What are QDAP and TVC?

QDAP is a qualifying deferred annuity premium. TVC is a tax-deductible MPF voluntary contribution paid into a designated TVC account. Both reduce assessable income; they are not a cash refund of the amount paid.

What is the QDAP and TVC deduction cap?

They share one annual ceiling of HK$60,000. Tax saved depends on your tax band and allowances. The theoretical maximum is about HK$10,200 at 17% progressive, or about HK$9,000 at the 15% standard rate. Below the basic allowance there is usually no immediate saving.

Can I deduct more than HK$60,000?

Not in the same year of assessment on this page. Inland Revenue allows TVC first, then any remaining room for QDAP.

Should I fill the HK$60,000 cap?

Only if you already want the retirement arrangement and can lock the money. Do not buy a product just to use the deduction.

Is ordinary voluntary MPF the same as TVC?

No. TVC has to go through a tax-deductible voluntary contribution account. Ordinary employer voluntary contributions are usually not TVC.

What does this calculator leave out?

Couple allocation of premiums, the annuitant's identity-card condition, cooling-off refunds, other allowances and provisional tax. The Inland Revenue assessment is decisive.
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