Manulife Tax-Deductible Solutions

Manulife’s 3 Tax‑Deductible Solutions – Tax Savings Tips

Can the premiums for purchasing insurance or deferred annuity plans be used for tax deduction? With the Voluntary Health Insurance Scheme (VHIS), Qualifying Deferred Annuity Policy (QDAP), and MPF Tax Deductible Voluntary Contributions (TVC), the aggregate maximum tax deductible amount per tax assessment year for these 3 products can reach up to HKD68,000¹!

¹Assuming a taxpayer or his/her spouse is the policyholder of a VHIS certified plan, he/she may apply for tax deduction on the premiums paid for the certified plan. The maximum VHIS certified plan tax deductible premium per life insured per tax assessment year is HKD8,000. HKD60,000 is the aggregate maximum tax deductible limit per taxpayer per tax assessment year for both QDAP premiums and TVC, and not an individual limit for QDAP premiums and TVC Tax deductions are items that may be deducted from chargeable income and are not equivalent to direct reductions from the tax payable. The actual amount of tax saved varies according to individual taxpayers’ chargeable income and applicable tax rate. Manulife and its insurance advisors do not provide any tax advice. For details regarding tax deductions, please visit the Inland Revenue Department (IRD) website and consult independent tax or accounting advisors for professional tax advice.

The content of this website does not contain the full terms of the policy(ies), and the full terms can be found in the policy document(s). For details and major product risks of the insurance products, please refer to the respective product brochures. For complete information about VHIS plans, please visit Manulife website.

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Hong Kongers is well‑known for being savvy savers. Manulife’s tax‑deductible solutions — including VHIS, QDAP and TVC —the 3 major tax‑deductible products could help you maximize tax savings.

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Estimate how much tax you can save now!

**By taking up a VHIS plan, a taxpayer may claim tax‑deductible premiums of up to HKD8,000 per insured person per year*.**

Whether you are taking up a VHIS policy for yourself, your parents or your children, you can enjoy tax savings*. As the policyholder, if you pay eligible premiums for an insured person^ (who must be a specified relative), the tax‑deductible limit for VHIS premiums is up to HKD8,000 per life insured per year*. There is no cap on the number of specified relatives for whom a taxpayer may claim deductions.

Learn more about tax savings with VHIS

**Prepare for future monthly annuity income* while enjoying tax deductions.**

Take up a Qualifying Deferred Annuity Policy (QDAP) certified by the Insurance Authority, and the basic plan premiums you pay can apply for tax deduction. If you and your spouse each purchase a QDAP, the two of you could save up to HKD20,400^{^} in tax per year!

Learn more about tax savings with QDAP

Contribute to MPF to save more and enjoy tax savings!

Through MPF Tax Deductible Voluntary Contributions (TVC), you can boost your retirement reserves but also reduce your tax expenses, with tax savings of up to HKD10,200*!

Learn more about tax savings with TVC

More on MPF TVC

Limited-time Offer^{^}

^*The maximum tax‑deductible limit for TVC is HKD60,000 per year, which is the aggregate limit for TVC and QDAP premiums, and not an individual limit for TVC and QDAP. Only contributions paid into your own TVC account and within the tax‑deductible limit are eligible for tax deduction. The actual tax saved varies according to your personal income, tax allowances and deductions, as well as the amount of TVC and/or QDAP premiums paid. Based on the current capped tax rate of 17%, you can save up to HKD10,200 in tax per year.

^{^}Terms and conditions apply

VHIS, QDAP and TVC Tax Deduction Case Studies

A freelancer maximizing tax savings through 3 tax-deductible solutions

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.

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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.

Tax saving tips for young families

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.

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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.

Leverage tax-deductible solutions to enhance both medical and retirement protection

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.

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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.

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What is the tax deduction limit for VHIS?

Voluntary Health Insurance Scheme (VHIS) is a policy initiative implemented by the Health Bureau. If you purchase a VHIS certified plan for yourself or your specified dependents (also known as “specified relatives”) on or after April 1, 2019, the qualifying premiums paid under the policy can be claimed for tax deduction.

The maximum tax-deductible premium is HKD8,000 per life insured per year, and there is no cap on the number of dependents you may claim. For example, if you purchase 3 VHIS policies for 3 dependents, the annual tax-deductible premium limit will be HKD24,000 (HKD8,000 × 3).

What are “specified relatives”?

“Specified relatives”, for the purpose of VHIS, 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 26J of the Inland Revenue Ordinance (Cap 112, Laws of Hong Kong SAR) for the detailed definition.

How to estimate the potential tax deduction from purchasing a VHIS plan?

The amount of tax savings depends on the eligible premiums paid and tax rate. A simple reference formula is:

Eligible VHIS premiums × Tax rate = Potential tax saving

For example, if your premium is HKD3,800 and the tax rate is 17%, you may save HKD646 in tax. The actual amount of tax saved will vary according to your personal tax assessment and individual circumstances. For details, please visit the Health Bureau’s VHIS website or the Inland Revenue Department website.

What is the insurance product category of VHIS?

VHIS is an individual indemnity hospital insurance plan that provides reimbursement for various medical expenses. It is also the only medical insurance product in the market that qualifies for tax deduction.

What are the plan options available under VHIS?

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 wider range of protection and product selection compared with Standard Plan. Manulife offers Manulife Shelter VHIS Standard Plan, Manulife First VHIS Flexi Plan, Manulife Supreme VHIS Flexi Plan and Manulife Supreme Lite VHIS Supplementary Benefit to give you well-rounded protection based on your needs.

What is a Qualifying Deferred Annuity Policy (QDAP)?

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 requirements including but not limited to: the minimum total premiums of HK$180,000, a minimum payment period of 5 years and the annuity period shall only start when the annuitant(s) has/have reached the age of 50 or beyond. Please click here for more details.

Tax deduction for QDAP premiums is effective starting from the 2019/20 tax assessment year. You may report the QDAP premiums paid and/or the TVC contributions made between April 1, 2025 and March 31, 2026 when filing your tax return in 2026.

What is maximum tax-deductible amount for QDAP?

Each taxpayer may claim a maximum combined tax‑deductible limit of HKD60,000 per tax assessment year for QDAP premiums and TVC contribution. 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 2025/26 (i.e. 17%), the maximum tax savings can reach up to HK$10,200 per year.

How do I find out the amount of premium paid to QDAP?

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).

What is MPF Tax Deductible Voluntary Contributions (TVC)?

MPF Tax Deductible Voluntary Contributions (TVC) is a 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 to MPF trustees directly without involvement of employers.

Tax deduction for TVC is effective starting from the 2019/20 tax assessment year. You may report the amount of TVC made between April 1, 2025 and March 31, 2026 when filing your tax return in 2026.

What is maximum tax-deductible amount for TVC?

The combined tax‑deductible limit for TVC and QDAP premiums is HKD60,000 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 2025/26 (i.e. 17%), the maximum tax savings can reach up to HK$10,200 per year.

How do I find out the amount of TVC made to MPF trustee?

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. on or before May 10 each year), to assist the scheme members to report the amount of TVC when filing their tax return.

Do I need to open another MPF account for TVC? When can I withdraw the accrued benefits from my TVC account?

You need to open a TVC account.

As for when TVC can be withdrawn, 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).

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Manulife Tax-Deductible Solutions

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Dear {Salutation} {FirstName} {LastName},

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Tax Savings Calculator

**By taking up a VHIS plan, a taxpayer may claim tax‑deductible premiums of up to HKD8,000 per insured person per year*.**

**Prepare for future monthly annuity income* while enjoying tax deductions.**

Contribute to MPF to save more and enjoy tax savings!

VHIS, QDAP and TVC Tax Deduction Case Studies

A freelancer maximizing tax savings through 3 tax-deductible solutions

show more

hide details

Tax saving tips for young families

show more

hide details

Leverage tax-deductible solutions to enhance both medical and retirement protection

show more

hide details

Tax Savings Calculator

Estimate how much tax you can save!

Learn more about our tax saving insurance plans

What is the tax deduction limit for VHIS?

What are “specified relatives”?

How to estimate the potential tax deduction from purchasing a VHIS plan?

What is the insurance product category of VHIS?

What are the plan options available under VHIS?

What is a Qualifying Deferred Annuity Policy (QDAP)?

What is maximum tax-deductible amount for QDAP?

How do I find out the amount of premium paid to QDAP?

What is MPF Tax Deductible Voluntary Contributions (TVC)?

What is maximum tax-deductible amount for TVC?

How do I find out the amount of TVC made to MPF trustee?

Do I need to open another MPF account for TVC? When can I withdraw the accrued benefits from my TVC account?

Are you looking for:

Manulife Tax-Deductible Solutions

Our experts are here to help you!

Thank you for contacting Manulife!

Dear {Salutation} {FirstName} {LastName},

Your personal enquiry number: {ReferenceID}

Oops! Please excuse us, something went wrong.

Tax Savings Calculator

By taking up a VHIS plan, a taxpayer may claim tax‑deductible premiums of up to HKD8,000 per insured person per year*.

VHIS, QDAP and TVC Tax Deduction Case Studies

A freelancer maximizing tax savings through 3 tax-deductible solutions

show more

hide details

Tax Savings Calculator

Estimate how much tax you can save!

Learn more about our tax saving insurance plans

What is the tax deduction limit for VHIS?

What are “specified relatives”?

How to estimate the potential tax deduction from purchasing a VHIS plan?

What is the insurance product category of VHIS?

What are the plan options available under VHIS?

Thank you for
contacting Manulife!

Oops!
Please excuse us, something went wrong.

**By taking up a VHIS plan, a taxpayer may claim tax‑deductible premiums of up to HKD8,000 per insured person per year*.**