Benefits of TVC

Depending on your TVC amount, you may enjoy up to HK$10,200 tax concession.You will not be charged on subscription fee nor is there a maximum contribution amount. The minimum contribution with Principal MPF S800 Scheme is HK$300 per month or an annual lump sum of HK$3,000.

MPF allows you to have a wide choice of professionally-managed investments, and the flexibility to diversify your portfolio to reduce investment risks. Managing your TVC under your existing MPF account may also help you save time and administrative cost.

How does TVC differ from MPF Mandatory Contribution(MC) and MPF Special Voluntary Contributions(SVC)?

  TVC MPF MC SVC
Tax deductible 1 2
Able to choose your MPF trustee 3
Able to choose your MPF Scheme 3
Preservation requirements4
Employer involvement
Available for customers who only possess ORSO scheme accounts
Administrative cost charged based on AUM5

1. A maximum of HK$60,000 is tax deductible under salaries tax and personal assessment.

2. A maximum of HK$18,000 is tax deductible under salaries tax, personal assessment and profits tax (for self-employed).

3. The Employee Choice Arrangement (ECA) gives employees greater autonomy, allowing them to, once a year, opt to transfer the accrued benefits derived from the employee mandatory contributions in their contribution accounts to a scheme of their own choice.

4. Withdrawal of TVC accrued benefits must meet any of the following requirements: retirement (attaining the age of 65); early retirement (attaining the age of 60 and ceased all employment or self-employment with no intention of becoming employed or self-employed again); death; small balances; permanent departure from Hong Kong SAR; total incapacity; or terminal illness.

5. AUM stands for Asset Under Management.