December 10 2018

Bill on tax deductions for annuity premiums and MPF voluntary contributions gazetted

Source: IBFD Tax Research Platform News

The Inland Revenue and MPF Schemes Legislation (Tax Deductions for Annuity Premiums and MPF Voluntary Contributions) (Amendment) Bill 2018 was gazetted by the government on 7 December 2018. The Bill seeks to implement the 2018-19 Budget initiative of introducing tax deductions for deferred annuity premiums and Mandatory Provident Fund Tax Deductible Voluntary Contributions (MPF TVCs) to encourage voluntary savings for retirement.

The maximum tax-deductible limit on contributions to MPF TVCs and deferred annuity premiums for each taxpayer will be HKD 60,000 per year. A joint assessment for couples will be allowed to claim a total deduction of HKD 120,000, provided that the deductions claimed by each taxpayer do not exceed the individual limit of HKD 60,000.

The Bill will be introduced into the Legislative Council on 12 December 2018.