Skip to main content
Back

Manulife Tax-Deductible Solutions

Explore Manulife Tax Deductible VHIS, TVC and QDAP policies to save more on tax returns.

The maximum tax-deductible amount per year is up to HKD68,0001!
Act now to be in time for tax deductions for the 2019/20 assessment year! 
Deadline by end of March2!

 

Assuming a taxpayer has a VHIS policy he or she could enjoy a maximum tax-deductible premium of HKD8,000 per eligible insured person per tax assessment year. The aggregate maximum tax-deductible limit for both qualifying deferred annuity premiums and Tax Deductible Voluntary Contributions is HKD60,000 per taxpayer per year. The actual amount of tax saved varies according to each taxpayer’s taxable income and the applicable tax rate.

2To apply for tax deductions for VHIS and QDAP, the policies must be successfully approved and effective, with the premiums payable duly received by Manulife, on or before March 27, 2020. To apply for tax deductions for TVC, customers must successfully set up the relevant account, make new contributions to it and have the new contributions received by Manulife on or before March 31, 2020.



Our experts are here to help you!

Talk to our experts

  • I want to contact

    .

  • I am a

    Manulife customer.

  • I have read and accepted Manulife's Terms of use and Personal Information Collection Statement including the use of my personal information provided above.

  • Thank you for
    contacting Manulife!


    Dear {Salutation} {FirstName} {LastName}

    Your personal enquiry number: {ReferenceID}

     

    We will respond within two business days to forms submitted at or before 10:00am each business day. For example, if you submit this form at or before 10:00am on a Monday, we will respond by Tuesday. Forms submitted after 10:00am on a Monday will receive a response by Wednesday.

    Oops!
    Please excuse us, something went wrong.

    Sorry, please refresh the page and try again

     

     


    Voluntary Health Insurance Scheme (VHIS) Certified Plan

    Get more of your family members insured for the chance to save more!

    Whether you are taking up a VHIS policy for yourself or a family member, it’s eligible for tax deduction of up to HKD8,000* per insured person per tax assessment year, with no limits on the number of insured persons!

    Learn more about tax deduction

    More on Manulife's VHIS

    Act now

     

    *The actual amount saved varies according to each insured person’s personal tax assessment and individual circumstances. For details, please consult independent tax and accounting consultants.

    Voluntary Health Insurance Scheme (VHIS) Certified Plan

    Get more of your family members insured for the chance to save more!

    Whether you are taking up a VHIS policy for yourself or a family member, it’s eligible for tax deduction of up to HKD8,000* per insured person per tax assessment year, with no limits on the number of insured persons!

    Learn more about tax deduction

    More on Manulife's VHIS

    Act now

     

    *The actual amount saved varies according to each insured person’s personal tax assessment and individual circumstances. For details, please consult independent tax and accounting consultants.

    Qualifying Deferred Annuity Policy (QDAP)

    Get a monthly income to enjoy a tax break!

    Take up a QDAP certified by the Insurance Authority, and you can apply for tax deduction for the basic plan premiums you paid. If you and your spouse have each purchased a QDAP, the two of you could save up to HKD20,400* in tax per year!

     

    Learn more about tax deduction

    More on Manulife QDAP

     

    *Assuming both husband and wife are taxpayers, the applicable tax rate is 17% and the total combined qualifying deferred annuity premiums they have paid during the 2019/2020 tax assessment year is HKD120,000. The actual amount of tax saved varies according to individual circumstances and may be different from the amount cited above. For details, please consult independent tax and accounting consultants.

    Tax Deductible Voluntary Contributions (TVC)

    Save more for retirement, save more on tax!

    Through TVC, you may not only boost your retirement reserves but also enjoy up to HKD10,200* in tax savings!

    Learn more about tax deduction

    More on Manulife TVC

    Act now

     

    *The maximum tax deductible amount from both TVC and QDAP is HKD60,000 per tax assessment year. The actual amount of tax saved varies according to a taxpayer’s personal income, tax deductible amount, tax allowances, and the premiums paid for QDAP and contributions made for TVC. Based on the current peak tax rate of 17%, up to HKD10,200 in tax can be saved per year.

    Tax-Deductible Solutions

    Manulife Tax-Deductible Solutions include Voluntary Health Insurance Scheme, Qualifying Deferred Annuity Policy and MPF Tax Deductible Voluntary Contributions. All 3 products could help you to save in tax.

    Let the “Penny Pincher” to show you how the Tax Saving Family can plan it right and make their tax burden light!

    Get an estimation on your tax savings!

     

    Estimate now

    Tax Deductible Case Studies

    Melissa quit her 9-to-8 job three years ago to follow her dreams in France where she learnt how to make desserts. She is now an instructor at a cooking school in Hong Kong, teaching interest classes in dessert-making. Since she knows how to promote her skills on social media, Melissa is often invited by companies to teach dessert-making classes. Her income therefore depends on how many classes she teaches. While her hands could be tied if there are too many classes, there is invariably downtime when she just ends up staying idle at home.

     

    Despite an unstable income, Melissa is satisfied with what she earns – an average annual income of HKD420,000. Given the limits of her group life policies, she is concerned about her health coverage for emergencies such as sudden illnesses or accidents. That's why she decides to take up a certified plan under the Voluntary Health Insurance Scheme (VHIS). As she is single, she understands that the earlier she starts retirement planning, the better she can prepare for her golden years. She also understands it’s necessary to save more for retirement as long as she has a decent income.

    Given the unstable nature of her income, she splits the money she wants to save between a Qualifying Deferred Annuity Policy (QDAP) and a Tax Deductible Voluntary Contributions (TVC) account, allocating a total of HKD60,000 each year to these two plans.

    Asset HKD
    Deposit 500,000
    Equities and Funds 320,000
    MPF Accrued Benefits 350,000
    Total Assets 1,170,000
      HKD
    Annual Personal Income 420,000
    Taxable Income# 270,000
    Annual Salary Tax Payable# (Originally) 27,900
    Tax Deduction for VHIS Plan@ (7,479)
    Tax Deduction for TVC / QDAP Premiums (60,000)
    Tax Payable (Now)# 16,428
    Annual Tax Savings 11,472

    Melissa is satisfied with her current job. Now that she has acquired medical coverage and boosted her retirement savings, she feels more secure than ever. With these tax-deductible solutions, she is able to save HKD11,472 in taxes, or more than 40% of her original assessment, for the 2019/2020 assessment year. What she saves in taxes could help her fast-track her retirement savings plan. That means she would soon be able to take short courses abroad to learn how to prepare a wider variety of desserts, an opportunity that may further boost her career prospects.

    # : The amount of tax payable shown above is computed on June 23, 2019 using the tax calculator developed by the Inland Revenue Department. It is for reference only. The amount is based on the assumption that there is no other applicable tax concession, tax-deductible or allowance.

    @ : Total amount of VHIS premiums eligible for tax deduction = HKD7,479

    Writer: Alvin Lam, Certified Money Coach 
    The information above is for general reference only. It shall not constitute nor shall it be taken as a substitute for the professional advice from an insurance advisor or the MPF registered intermediaries on the purchase of insurance policies. No aspect of this website shall be solely relied upon for the decision of insurance purchase. You should seek relevant professional advice before taking action on any matters to which information provided on this website may be relevant. For more details, please contact your Manulife insurance advisor or the MPF registered intermediaries. We do not provide any tax, legal or accounting advice and consultation to you. If you have any questions, please consult the IRD or independent tax, legal and accounting consultants.

    Melissa quit her 9-to-8 job three years ago to follow her dreams in France where she learnt how to make desserts. She is now an instructor at a cooking school in Hong Kong, teaching interest classes in dessert-making. Since she knows how to promote her skills on social media, Melissa is often invited by companies to teach dessert-making classes. Her income therefore depends on how many classes she teaches. While her hands could be tied if there are too many classes, there is invariably downtime when she just ends up staying idle at home.

     

    Despite an unstable income, Melissa is satisfied with what she earns – an average annual income of HKD420,000. Given the limits of her group life policies, she is concerned about her health coverage for emergencies such as sudden illnesses or accidents. That's why she decides to take up a certified plan under the Voluntary Health Insurance Scheme (VHIS). As she is single, she understands that the earlier she starts retirement planning, the better she can prepare for her golden years. She also understands it’s necessary to save more for retirement as long as she has a decent income.

    Given the unstable nature of her income, she splits the money she wants to save between a Qualifying Deferred Annuity Policy (QDAP) and a Tax Deductible Voluntary Contributions (TVC) account, allocating a total of HKD60,000 each year to these two plans.

    Asset HKD
    Deposit 500,000
    Equities and Funds 320,000
    MPF Accrued Benefits 350,000
    Total Assets 1,170,000
      HKD
    Annual Personal Income 420,000
    Taxable Income# 270,000
    Annual Salary Tax Payable# (Originally) 27,900
    Tax Deduction for VHIS Plan@ (7,479)
    Tax Deduction for TVC / QDAP Premiums (60,000)
    Tax Payable (Now)# 16,428
    Annual Tax Savings 11,472

    Melissa is satisfied with her current job. Now that she has acquired medical coverage and boosted her retirement savings, she feels more secure than ever. With these tax-deductible solutions, she is able to save HKD11,472 in taxes, or more than 40% of her original assessment, for the 2019/2020 assessment year. What she saves in taxes could help her fast-track her retirement savings plan. That means she would soon be able to take short courses abroad to learn how to prepare a wider variety of desserts, an opportunity that may further boost her career prospects.

    # : The amount of tax payable shown above is computed on June 23, 2019 using the tax calculator developed by the Inland Revenue Department. It is for reference only. The amount is based on the assumption that there is no other applicable tax concession, tax-deductible or allowance.

    @ : Total amount of VHIS premiums eligible for tax deduction = HKD7,479

    Writer: Alvin Lam, Certified Money Coach 
    The information above is for general reference only. It shall not constitute nor shall it be taken as a substitute for the professional advice from an insurance advisor or the MPF registered intermediaries on the purchase of insurance policies. No aspect of this website shall be solely relied upon for the decision of insurance purchase. You should seek relevant professional advice before taking action on any matters to which information provided on this website may be relevant. For more details, please contact your Manulife insurance advisor or the MPF registered intermediaries. We do not provide any tax, legal or accounting advice and consultation to you. If you have any questions, please consult the IRD or independent tax, legal and accounting consultants.

    Mandy and her husband Marven are always so occupied with work that they won’t miss any chance to relax and unwind on holidays abroad. They spend about HKD120,000 each year on travel alone. As they don't want kids in their lives and don't have to financially support their parents, they are in a position to spend what they earn on themselves. In recent years, they have become increasingly concerned about the quality of life they can enjoy after retirement. The concern came as a result of their frequent contact, due to their jobs, with frail and infirm elderly people, whose declining health and financial vulnerability have left the couple worried about whether they can achieve the retirement life they want.

     

    As a result, even though they already have group health coverage from their employers, they have each decided to take up a private health insurance plan with multiple benefits, which they hope will become their safety nets against potential medical expenses as they grow older. After doing some research, they concluded that the Flexi Plans launched under the Voluntary Hospital Insurance Scheme (VHIS), which offer protection tailored to their needs as well as tax deduction benefits, were a good fit for them.

    The couple have a passive interest in managing their finances, and hold what remains of their income after expenses mostly in the form of bank savings. Mandy plans to retire in ten years’ time and would like to have a stable income during the first 10 to 20 years of her retirement, when they are about 50 to 70 years old. That’s why she has decided to buy a Qualifying Deferred Annuity Product (QDAP) to help her save more and enjoy tax benefits. Meanwhile, Marven expects to be working until age 65 and prefers a retirement savings plan that provides more investment options. That's why he has chosen the MPF Tax Deductible Voluntary Contributions (TVC) option. They will each contribute HKD100,000 a year to their respective insurance plans for a period of 5 years, which will be funded by their cash savings.

    Assets HKD
    Deposits 1,000,000
    Equities 120,000
    MPF Accrued Benefits 450,000
    Self-owned Property 5,700,000
    Outstanding Mortgage (2,200,000)
    Total Assets 5,070,000
      HKD
    Annual Family Income 756,000
    Taxable Income# 407,713
    Annual Salary Tax Payable# (Originally) 33,695
    Tax Deductions for 2 VHIS Policies@ (19,627)
    Tax Deduction for MPF TVC/QDAP Premiums~ (120,000)
    Tax Payable (Now) 14,866
    Annual Tax Savings 18,829
    Insured VHIS Annual Premium Tax Deductinos Marven is eligible for Tax Deductions Mandy is eligible for
    Mandy 10,575 2,575 8,000
    Marven 9,052 8,000 1,052
        10,575 9,052

    For both Mandy and Marven, the total amount of VHIS premiums eligible for tax deduction is therefore HKD19,627.

    Making regular contributions to tax-deductible insurance plans while you can still afford it is an approach that helps the couple minimize uncertainty about their retirement lives and reduce their tax burdens. In doing so, they are able to save 56%, or HKD18,829, of their original tax bills. They will also review their investment in these plans regularly, hoping that this can help them retire early and live off the interest.

    # : The amount of tax payable shown above is computed on May 29, 2019 using the tax calculator developed by the Inland Revenue Department. It is for reference only. The amount is based on the assumption that there is no other applicable tax concession, tax-deductible or allowance, and that separate taxation is chosen.
    @ : Total premium of the two VHIS plans = HKD19,627, amount eligible for tax deduction = HKD19,627

    ~ : A taxpayer can claim tax deduction for contributions made to TVC accounts and QDAP premiums paid, subject to an aggregate limit of HKD60,000 per assessment year. A taxpaying couple may allocate tax deductions for deferred annuity premiums among themselves in order to claim the combined total deduction of HKD120,000, provided that the deductions claimed by each taxpayer do not exceed the individual limit. 

    Writer: Alvin Lam, Certified Money Coach 
    The information above is for general reference only. It shall not constitute nor shall it be taken as a substitute for the professional advice from an insurance advisor or the MPF registered intermediaries on the purchase of insurance policies. No aspect of this website shall be solely relied upon for the decision of insurance purchase. You should seek relevant professional advice before taking action on any matters to which information provided on this website may be relevant. For more details, please contact your Manulife insurance advisor or the MPF registered intermediaries. We do not provide any tax, legal or accounting advice and consultation to you. If you have any questions, please consult the IRD or independent tax, legal and accounting consultants.

    Mr. Man, the major breadwinner of his family, is a manager at a logistics firm, and his wife works for a fast food shop as an accounting clerk. The couple live together with Man’s 65-year-old mother, who helps look after their 10-year-old son.

     

    As the flat where they live was purchased 20 years ago through the Home Ownership Scheme and the mortgage has already been paid off, Man’s financial obligations are not too heavy. However, he is concerned about not being able to cope with rising medical costs in the future since his mother’s health is showing signs of decline. Other than the group medical insurance provided by his employer, the family doesn’t have any medical protection.

    Assets HKD
    Deposits 550,000
    Equities 400,000
    MPF Accrued Benefits 1,020,000
    Self-owned Property 5,380,000
    Total Assets 7,350,000

    Worried that he will likely have to shoulder all the medical expenses needed for his family members in the future, Mr. Man decided to purchase a certified plan under the Voluntary Health Insurance Scheme (VHIS) for all three of them, in hopes of being better prepared for potential medical emergencies. This also gives him the opportunity to avail himself of any tax savings to be made, since under the VHIS, he can apply for tax deduction for the premiums paid for his dependents’ policies.

     

    Meanwhile, the couple would also like to plan for their retirement, which could be some 20 years away. Concerned about her job security, Mrs. Man decided to open an MPF Tax Deductible Voluntary Contributions (TVC) account, which doesn’t require long-term financial commitment, and made a contribution of HKD60,000 to this account over the course of this year.

     

    In order to secure a continuous stream of income for his retirement, Mr. Man has also bought a Qualifying Deferred Annuity Policy (QDAP) with an annual premium of HKD120,000.

    As a result of these decisions, Man has achieved a total of HK$16,167 in tax savings, or 48% of the original tax amount owed. By using these additional savings to support future spending, he will be better prepared for a more secure retirement in the future.

      HKD
    Annual Family Income 876,000
    Taxable Income# 363,200
    Annual Salary Tax Payable# (Originally) 33,692
    Tax Deductions for 3 VHIS Policies (34,229)
    Tax Deduction for MPF TVC/QDAP Premiums (120,000)
    Tax Payable (Now) 17,525
    Annual Tax Savings 16,167
    Insured VHIS Annual Premium Eligible Tax Deduction for Mr. Man Eligible Tax Deduction for Mrs. Man
    Mother of Mr. Man 17,234 8,000 8,000
    Mrs. Man 13,220 8,000 5,220
    Son of Mr. Man 5,009 5,009 -
        21,009 13,220

    The couple may enjoy a total tax deduction of HKD34,229 if they choose joint assessment.

    They will be entitled to a total tax deduction of HKD34,209 under personal assessment.

    # : These figures were arrived at based on calculations using the tax calculator developed by the Inland Revenue Department. Calculation results show that joint assessment can help Mr. and Mrs. Man save more than personal assessment.
    **Assuming that there is no other applicable tax concession and that child and dependent parent allowances have already been claimed.
    https://www.ird.gov.hk/chi/ese/st_comp_2018_19_budget/cstcfrm.html
    Disclaimer: The payable tax amount shown above was calculated on May 27, 2019 using the tax calculator developed by the Inland Revenue Department.

    Writer: Alvin Lam, Certified Money Coach 
    The information above is for general reference only. It shall not constitute nor shall it be taken as a substitute for the professional advice from an insurance advisor or the MPF registered intermediaries on the purchase of insurance policies. No aspect of this website shall be solely relied upon for the decision of insurance purchase. You should seek relevant professional advice before taking action on any matters to which information provided on this website may be relevant. For more details, please contact your Manulife insurance advisor or the MPF registered intermediaries. We do not provide any tax, legal or accounting advice and consultation to you. If you have any questions, please consult the IRD or independent tax, legal and accounting consultants.

    Tax Savings Calculator

    Get an estimation on your tax savings!

    Learn more about tax deduction

    VHIS is a policy initiative introduced by the Food and Health Bureau. Citizens may apply for tax deduction on the qualifying premiums paid by a citizen for himself/herself and his/her specified dependent(s) (i.e. specificed relatives) for VHIS certified plans on or after April 1, 2019. The deduction ceiling is set at HK$8,000 per insured person per year. There is no cap on the number of dependent(s) that are eligible for tax deduction. For example, if you purchase 3 VHIS plans for 3 dependents, you can apply for tax deduction for the premiums paid up to HK$24,000 (HK$8,000 x 3) per year.

    Specified dependents include the taxpayer’s spouse and children, and the grandparents, parents, brothers or sisters of the taxpayer or his/ her spouse. Please refer to Section 112 of the Tax Ordinance for the detailed definition.

    Tax savings from purchasing VHIS certified plan depend on the eligible premiums paid and tax rate like below:
    Eligible VHIS certified plan premiums x Tax Rate = Potential Tax Savings

    For example, if your premium paid is HK$3,800, assuming the tax rate is 17%, you may possibly enjoy HK$646 in tax savings. But the actual tax savings you can enjoy will depend on your personal tax assessment and situation. For details, please visit the website of VHIS Office of Food and Health Bureau and the Inland Revenue Department.

    VHIS is an individual indemnity hospital insurance product, which provides reimbursements of medical expenses.

    2 types of certified plans are available under VHIS – Standard Plan and Flexi Plan. Standard Plan follows the minimum requirements of VHIS from the Government, providing standardized basic protection. Flexi Plan provides more comprehensive protection and product selection compared with Standard Plan. Manulife offers Manulife Shelter VHIS Standard Plan and Manulife First VHIS Flexi Plan to give you well-rounded protection based on your needs.

    VHIS is a policy initiative introduced by the Food and Health Bureau. Citizens may apply for tax deduction on the qualifying premiums paid by a citizen for himself/herself and his/her specified dependent(s) (i.e. specificed relatives) for VHIS certified plans on or after April 1, 2019. The deduction ceiling is set at HK$8,000 per insured person per year. There is no cap on the number of dependent(s) that are eligible for tax deduction. For example, if you purchase 3 VHIS plans for 3 dependents, you can apply for tax deduction for the premiums paid up to HK$24,000 (HK$8,000 x 3) per year.

    Specified dependents include the taxpayer’s spouse and children, and the grandparents, parents, brothers or sisters of the taxpayer or his/ her spouse. Please refer to Section 112 of the Tax Ordinance for the detailed definition.

    Tax savings from purchasing VHIS certified plan depend on the eligible premiums paid and tax rate like below:
    Eligible VHIS certified plan premiums x Tax Rate = Potential Tax Savings

    For example, if your premium paid is HK$3,800, assuming the tax rate is 17%, you may possibly enjoy HK$646 in tax savings. But the actual tax savings you can enjoy will depend on your personal tax assessment and situation. For details, please visit the website of VHIS Office of Food and Health Bureau and the Inland Revenue Department.

    VHIS is an individual indemnity hospital insurance product, which provides reimbursements of medical expenses.

    2 types of certified plans are available under VHIS – Standard Plan and Flexi Plan. Standard Plan follows the minimum requirements of VHIS from the Government, providing standardized basic protection. Flexi Plan provides more comprehensive protection and product selection compared with Standard Plan. Manulife offers Manulife Shelter VHIS Standard Plan and Manulife First VHIS Flexi Plan to give you well-rounded protection based on your needs.

    Tax Deductible Voluntary Contributions (TVC) is a new type of voluntary contributions which is tax-deductible under the MPF system. Members are free to choose their own MPF scheme to set up their TVC account and make contributions directly without involvement of employers.

    Qualifying Deferred Annuity Policy (QDAP) is a deferred annuity product complying with the guidelines issued by the Insurance Authority (IA) and being certified by the IA. Premiums paid to QDAP are tax-deductible. QDAP must comply with a number of requirement including but not limited to: the minimum total premiums of HK$180,000, a minimum payment period of 5 years and annuitization at the age of 50 or above. Please click here for more details.

    Premiums paid to QDAP or making MPF TVC (TVC) for retirement purpose are eligible for tax deduction. The aggregate maximum tax-deductible amount for both qualifying deferred annuity premiums and TVC is HK$60,000 per taxpayer per year. The amount of tax deduction will depend on a number of factors, including personal income, entitled tax allowances and deductions, premiums paid to QDAP or TVC made, etc. Based on the highest tax rate for the year of assessment 2018/19 (i.e. 17%), the maximum tax savings can reach up to HK$10,200 per year.

    Tax deduction will come into effect from the year of assessment 2019/20. You can report the amount of premiums paid to QDAP and contributions TVC made from April 1, 2019 to March 31, 2020 when you file the tax return in 2020.

    For QDAP, the supporting documents should show the amount of qualifying deferred annuity premiums paid during the year of assessment (e.g. the annual summary or premium payment record issued by insurance companies). For TVC, MPF trustee is required to provide a TVC summary to each TVC account holder within 40 days from the end of a fiscal year (i.e. 10th of May each year), to assist the scheme members to report the amount of TVC when filing their tax return.

    Same as that with mandatory contributions, any accrued benefits derived from TVC are required to preserve and can only be withdrawn upon TVC account holder reaching the age of 65 (except for other statutory grounds under the MPF regulations).

    You need to open a MPF TVC account.

    The VHIS Office recently discovered a translation error in the Chinese version of the Schedule of Surgical Procedures of the Certified Plan Policy Template. In the fracture/dislocation section of the Surgical Schedule, “clavicle” on the 8th and 12th items was mistranslated as “scapula” and “scapula” on the 13th item was mistranslated as “clavicle”. Manulife has reviewed and revised the relevant product information of Manulife’s VHIS certified plans upon the VHIS Office’s request, and has revised the Chinese version of the certified plans’ policy provisions accordingly. The English version of the policy provisions is not affected. For any enquiries, please contact Manulife’s service hotline at 2108 1188.

    View more

    Our Customer Service Centres and Customer Service Hotlines will operate from 9:00am to 12:30 pm during Lunar New Year's Eve on January 24 (Friday).

    View more

    The VHIS Office recently discovered a translation error in the Chinese version of the Schedule of Surgical Procedures of the Certified Plan Policy Template. In the fracture/dislocation section of the Surgical Schedule, “clavicle” on the 8th and 12th items was mistranslated as “scapula” and “scapula” on the 13th item was mistranslated as “clavicle”. Manulife has reviewed and revised the relevant product information of Manulife’s VHIS certified plans upon the VHIS Office’s request, and has revised the Chinese version of the certified plans’ policy provisions accordingly. The English version of the policy provisions is not affected. For any enquiries, please contact Manulife’s service hotline at 2108 1188.

    View more

    Our Customer Service Centres and Customer Service Hotlines will operate from 9:00am to 12:30 pm during Lunar New Year's Eve on January 24 (Friday).

    View more
    Confirm