Tax Deductible Voluntary Contributions Will Take Effect on 1 April 2019
Tax Deductible Voluntary Contributions Will Take Effect on 1 April 2019
Inland Revenue and MPF Schemes Legislation (Tax Deductions For Annuity Premiums And MPF Voluntary Contributions) (Amendment) Bill 2018 was passed by Legislative Council on 20 March 2019. Tax concession will be provided for the tax deductible voluntary contributions (TVC) made by MPF scheme members. TVC will take effect on 1 April 2019.
1. What is the tax concession amount?
The maximum tax concession amount for TVC in the year of assessment 2019/2020 is $60,000, and this is the aggregate limit for both TVC and other qualifying annuity premiums.
2. Who can make TVC?
If you are a current holder of MPF account, or a current member of an MPF exempted ORSO scheme, you can directly open a TVC account and make contributions to an MPF scheme that you have chosen. Involvement of employers is not required.
3. When can the TVC be withdrawn?
Same as mandatory contributions, TVC can only be withdrawn upon retirement at age 65 or on other statutory grounds under the MPF legislation.