Tax Filing
Tax Filing
Comprehensive Guide to MPF Tax Deductions: Limits, Calculations, and Filing Tips
Author
Bowtie Team
Updated on
2026-07-29
Tax season is approaching! Besides saving on taxes using the Voluntary Health Insurance Scheme (VHIS) and Qualifying Deferred Annuity Policies (QDAP), you can also utilize MPF Tax Deductible Voluntary Contributions (TVC) — one of the major tax deduction tools in Hong Kong. The Bowtie team explains the MPF tax deduction limits below, along with calculation methods and a step-by-step guide on how to claim this deduction on your tax return.
What is the MPF Tax Deduction?
The Mandatory Provident Fund (MPF) is a compulsory retirement savings scheme established by the Hong Kong government. Both employees and self-employed persons must make regular contributions to accumulate funds for retirement. The MPF tax deduction allows taxpayers to deduct the eligible portion of their MPF contributions from their assessable income when calculating Salaries Tax or Personal Assessment, effectively lowering their tax burden.
- [MPF Offsetting Mechanism Abolition in 2025: Arrangements and Calculations]
- [MPF Withdrawal: Required Documents and Conditions for Early Withdrawal]
- [MPF Consolidation: How to Manage Your MPF Accounts After Changing Jobs]
- [What is eMPF? Registration Guide and Timeline for Joining the Platform]
Which Types of MPF Contributions are Tax-Deductible?
Taxpayers can claim deductions through two types of MPF contributions: Mandatory Contributions and Tax Deductible Voluntary Contributions (TVC).
-
Mandatory Contributions: Taxpayers can deduct mandatory contributions made to an MPF scheme or a recognized Occupational Retirement Scheme (ORSO) from their assessable income, thereby reducing their Salaries Tax or Profits Tax liability.
-
Tax Deductible Voluntary Contributions (TVC): Anyone holding a contribution account or personal account in an MPF scheme, or members of MPF-exempted ORSO schemes, can open a separate TVC account. By voluntarily depositing money into this account, they can enjoy an additional tax deduction.
However, it is important to note that regular Employee Voluntary Contributions (EEVC) and Special Voluntary Contributions (SVC) are not eligible for MPF tax deductions.
2025/26 MPF Tax Deduction Limits
|
MPF Tax Deduction Type |
Annual Maximum Deduction |
|---|---|
|
Mandatory Contributions |
HK$18,000 |
|
Tax Deductible Voluntary Contributions (TVC) |
HK$60,000 |
It is important to note that the HK$60,000 maximum deduction for TVC is an aggregate limit shared with Qualifying Deferred Annuity Policies (QDAP). You do not get a separate HK$60,000 allowance for each.
If a taxpayer does not purchase a QDAP, their maximum TVC deduction for the year is HK$60,000. If the taxpayer makes TVC and pays QDAP premiums simultaneously, the combined maximum deduction remains capped at HK$60,000.
When calculating the deduction amount for TVC and QDAP, the Inland Revenue Department (IRD) deducts the TVC amount first, followed by the QDAP premiums.
For example, if a taxpayer claims a TVC deduction of HK$60,000, even if they have also purchased a tax-deductible QDAP, the premiums for that annuity will not provide any further tax deduction for that year.
- [Tax Deduction Trio: VHIS, QDAP, and MPF TVC]
- [Transferring MPF to Annuities: Pros and Cons from a Financial Perspective]
- [Deferred Annuities: How Much Can You Deduct? Comparing Returns Across Hong Kong Plans]
MPF Tax Deduction Calculation Examples
To make the calculation of MPF tax deductions clearer, here are four scenarios demonstrating how TVC and QDAP can help taxpayers save on taxes:
MPF Tax Deduction Scenario 1 The taxpayer makes a TVC of HK$30,000, has no annuity policy, and falls under a 17% tax rate*.
|
Contribution |
Deduction Amount |
Tax Savings |
|---|---|---|
|
HK$30,000 |
HK$30,000 |
HK$5,100 |
MPF Tax Deduction Scenario 2 The taxpayer makes a TVC of HK$70,000, has no annuity policy, and falls under a 17% tax rate*.
|
Contribution |
Deduction Amount |
Tax Savings |
|---|---|---|
|
HK$70,000 |
HK$60,000 |
HK$10,200 |
MPF Tax Deduction Scenario 3 The taxpayer makes a TVC of HK$30,000, pays HK$30,000 in annuity premiums, and falls under a 17% tax rate*.
|
Contribution / Premium |
Deduction Amount |
Tax Savings |
|---|---|---|
|
HK$30,000 (TVC) |
HK$30,000 |
HK$5,100 |
|
HK$30,000 (Annuity) |
HK$30,000 |
HK$5,100 |
|
Total |
HK$60,000 |
HK$10,200 |
MPF Tax Deduction Scenario 4 The taxpayer makes a TVC of HK$50,000, pays HK$20,000 in annuity premiums, and falls under a 17% tax rate*.
|
Contribution / Premium |
Deduction Amount |
Tax Savings |
|---|---|---|
|
HK$50,000 (TVC) |
HK$50,000 |
HK$8,500 |
|
HK$20,000 (Annuity) |
HK$10,000 |
HK$1,700 |
|
Total |
HK$60,000 |
HK$10,200 |
*Tax rates vary depending on individual income levels.
Who is Eligible for MPF Tax Deductions?
According to the MPF website, employers, employees, and self-employed persons can all claim MPF tax deductions, though the methods differ:
Employers Employers can deduct the mandatory and voluntary contributions they make for their employees under Profits Tax. The maximum deduction is 15% of the employees’ total remuneration.
Employees
-
Mandatory Contributions: Employees can claim deductions for their mandatory MPF contributions under Salaries Tax, capped at HK$18,000 per year.
-
Voluntary Contributions: Regular voluntary contributions are not tax-deductible, but TVC are eligible for deductions.
Self-employed Persons
-
Mandatory Contributions: Self-employed individuals can deduct their mandatory MPF contributions as business expenses under Profits Tax, capped at HK$18,000 per year.
-
Voluntary Contributions: Regular voluntary contributions are not tax-deductible, but TVC are eligible for deductions.
How to Claim the MPF Tax Deduction
To apply for the MPF tax deduction, taxpayers simply need to fill in the relevant details in the “Deductions” section of their Tax Return – Individuals (BIR60). Here are the steps and required documents:
Steps to Apply for the MPF Tax Deduction
-
Download or complete the electronic tax return (BIR60).
-
In the “Deductions” section of the tax return, find the “Mandatory Provident Fund Contributions” field and enter your total mandatory contributions for the year of assessment.
-
If you have made Tax Deductible Voluntary Contributions (TVC), enter the total contribution amount in the respective field.
Required Documents
Taxpayers do not need to submit supporting documents when filing their tax returns. However, you should retain your MPF contribution records (such as your MPF annual benefit statement) in case the Inland Revenue Department conducts a random check in the future.
Can I apply for the MPF tax deduction retroactively?
If you realize you forgot to claim the MPF tax deduction after submitting your tax return, you can fill out Form IR831 to apply for a revision of assessment. The deadline to submit this late claim is within 6 years after the end of the relevant year of assessment.
MPF Tax Deduction Tips
If you want to maximize your tax deductions, it is worth doing some homework to choose a suitable MPF scheme and open a “Tax Deductible Voluntary Contributions Account”. This can grant you an additional tax deduction of up to HK$60,000 per year of assessment.
TVC plans allow members to make contributions regularly or irregularly, and the amount does not have to be tied to your salary. Contributors can freely increase, decrease, pause, or resume contributions according to their personal circumstances.
A quick reminder: the tax deduction limit for TVC is shared with QDAP, and the IRD will deduct the MPF TVC portion first, applying the remainder to your annuity plan. Therefore, if you find that you haven’t reached the deduction cap after deducting your TVC, you might consider purchasing a Qualifying Deferred Annuity Policy to fully utilize the remaining tax concession.
More 2025/26 Tax Filing Guides:
-
Budget Information: Budget Summary | Tax Rebate Arrangements
-
Tax Filing: Tax Filing Guide | Online Tax Filing | Tax Calculator | First-time Tax Filing | Freelancer / Self-employed Tax Filing | Tax Clearance for Leaving HK
-
Tax Payment: When to Pay Tax | Late Tax Payment | Personal Assessment | Salaries Tax | Profits Tax
-
Allowances: Personal Allowance Calculation | Child Allowance | Dependent Parent Allowance
-
Deductions: Tax Deduction Trio | Annuity Tax Deduction | QDAP | Mortgage Interest Deduction | Rent Deduction
-
VHIS Deductions: VHIS Deduction Guide | VHIS Deduction Examples | VHIS Deduction Application | Buying VHIS for Parents
-
Corporate Tax: Corporate Tax Filing
Frequently Asked Questions
What is the maximum tax deduction limit for MPF Mandatory Contributions?
The maximum tax deduction limit for MPF Mandatory Contributions is HK$18,000 per year of assessment. This limit applies to both regular employees and self-employed persons.
Can I claim a HK$60,000 tax deduction for TVC and another HK$60,000 for QDAP?
No, the HK$60,000 maximum deduction limit is an aggregate cap shared between Tax Deductible Voluntary Contributions (TVC) and Qualifying Deferred Annuity Policies (QDAP). The combined deduction across both cannot exceed HK$60,000 in a single year of assessment.
Are regular Employee Voluntary Contributions (EEVC) tax-deductible?
No, regular Employee Voluntary Contributions (EEVC) and Special Voluntary Contributions (SVC) do not qualify for tax deductions. Only Mandatory Contributions and Tax Deductible Voluntary Contributions (TVC) are eligible.
What should I do if I forgot to claim the MPF tax deduction when filing my return?
You can apply for a retroactive claim by submitting a completed Form IR831 to the Inland Revenue Department. This must be done no later than 6 years after the end of the year of assessment to which the claim relates.
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