Annuity & QDAP Tax Specialist

Hong Kong QDAP & Annuity Tax Deduction — Maximise Your Pension Relief

The Qualifying Deferred Annuity Policy (QDAP) deduction of up to HKD 60,000 per year is one of HK's most powerful individual tax reliefs — yet it is vastly underutilised. Our CPAs help you select qualifying products, maximise the deduction, and plan how annuity income is treated in retirement.

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HKD 60,000 Annual QDAP + TVC deduction cap
HKD 9,000 Annual tax saved at 15% standard rate
20%+ Of eligible taxpayers utilise QDAP

Annuity & QDAP Tax Specialist

The Qualifying Deferred Annuity Policy (QDAP) deduction of up to HKD 60,000 per year is one of HK's most powerful individual tax reliefs — yet it is vastly underutilised. Our CPAs help you select qualifying products, maximise the deduction, and plan how annuity income is treated in retirement.

⚠️

⚠ Not All Annuity Products Qualify for the QDAP Tax Deduction

The tax deduction only applies to QDAP products that have received approval from the Insurance Authority. Many annuity products sold in HK are NOT QDAPs and therefore do not qualify for the deduction. Always verify IA approval before purchasing with the intention of claiming a tax deduction. The QDAP deduction and MPF Tax Deductible Voluntary Contribution (TVC) share a combined cap of HKD 60,000.

Défis courants

Rencontrez-vous ces problèmes fiscaux ?

Product Eligibility Confusion

Only Insurance Authority-approved QDAPs qualify. Purchasing an unapproved annuity product in the belief it qualifies is a costly mistake.

⚠ Risk: Purchasing a non-QDAP annuity → zero tax deduction on premiums paid

QDAP vs TVC Allocation

The HKD 60,000 cap is shared between QDAP premiums and MPF Tax Deductible Voluntary Contributions. Splitting optimally between the two requires analysis of product returns and flexibility.

⚠ Risk: Suboptimal allocation → lower return or lower flexibility than possible

Surrender Charge Trap

QDAP products have surrender charges if you withdraw early. Some taxpayers claim the deduction for a year then surrender the policy — triggering clawback provisions.

⚠ Risk: Early surrender → deduction clawed back + surrender penalty

Annuity Income in Retirement

QDAP annuity payments received in retirement may be partially taxable depending on the nature of the payment. Planning this correctly minimises tax in retirement.

⚠ Risk: Unexpected tax on annuity income in retirement → cash flow shortfall
Pour qui

À qui s'adresse ce service

Professionals aged 40–60 seeking pre-retirement savings

Those wanting to build retirement income while capturing maximum tax deductions in peak earning years.

High earners at or near the 15% standard rate

Those for whom each HKD 1 of QDAP deduction saves the full HKD 0.15 in tax.

Existing annuity holders wanting to verify deductibility

Those who purchased annuities in the past and are unsure whether they qualify as QDAPs.

MPF TVC contributors wanting to add QDAP

Those already making TVC contributions who want to understand how QDAP interacts with their TVC cap.

Those approaching the HKD 60,000 cap

Taxpayers wanting to ensure they use the full cap — neither under- nor over-contributing.

Nos services

Ce que nous couvrons

QDAP Product Eligibility Verification

We verify whether your existing or proposed annuity product is an approved QDAP.

Cross-checked against the Insurance Authority approved product list

QDAP + TVC Optimal Allocation

We model the optimal split between QDAP premiums and MPF TVC contributions to maximise your HKD 60,000 deduction.

Considering product flexibility, liquidity, and expected returns

Tax Deduction Claim Filing

We prepare your annual BIR60 with the QDAP/TVC deduction correctly claimed and supporting documentation.

Including QDAP payment receipt from insurer and TVC contribution statement

Multi-Year QDAP Tax Saving Projection

We model your QDAP tax savings over 10–20 years to illustrate the compounded benefit of consistent contributions.

Presented alongside after-tax retirement income projections

Retirement Annuity Income Tax Planning

We plan how your QDAP annuity income will be taxed in retirement and structure withdrawals efficiently.

Coordinating with MPF drawdown, other pension income, and personal allowances
Comment ça marche

Simple, efficace, professionnel

1

Annuity & TVC Current Position Review

We review any existing QDAP policies, TVC contributions, and your current BIR60 deduction claims.

1 day
2

Optimisation Analysis

We model the optimal QDAP premium and TVC contribution for the current and future years.

1–2 days
3

Product Implementation Support

We help you select a qualifying QDAP product and confirm IA approval status.

1 week
4

Annual Deduction Claim & Review

We file the QDAP deduction each year and review your position as income and products change.

Annual
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Réussites de nos clients

Des résultats concrets pour de vrais clients

Case Study

Financial controller setting up QDAP for first time

HKD 9,000/year in tax + HKD 180,000 over 20 years Économisé
  • Annual salary HKD 900,000 (standard rate taxpayer)
  • QDAP premium HKD 60,000/year established
  • Prior years: zero QDAP deduction claimed
  • TAX.hk verified IA-approved product and set up annual claim
"I had no idea about QDAP for 6 years. TAX.hk set up my plan in 2 weeks and I now save HKD 9,000 every year automatically."
Client vérifié Case Study
Case Study

Married couple — dual QDAP optimisation

HKD 18,000/year combined Économisé
  • Both spouses standard rate taxpayers
  • Husband: QDAP HKD 60,000/year
  • Wife: QDAP HKD 30,000 + TVC HKD 30,000/year
  • Combined annual saving at 15%: HKD 18,000
  • Structured to avoid TVC/QDAP cap overlap
"TAX.hk structured our combined QDAP and TVC contributions perfectly — no overlap, maximum deduction."
Client vérifié Case Study
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Une expertise fiscale hongkongaise approfondie

Nos CPA cumulent plus de 15 ans d'expérience fiscale à Hong Kong et suivent chaque mise à jour de l'IRD.

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FAQ

Questions fréquentes

Réponses rapides à vos questions

A Qualifying Deferred Annuity Policy (QDAP) is an annuity product approved by the Insurance Authority of Hong Kong that meets specific requirements: the policyholder must be aged 60+ before receiving annuity payments; premiums must be paid for at least 5 years; and the annuity payout period must be at least 10 years. Only products meeting these criteria and holding IA approval qualify for the HK tax deduction.

At the 15% standard salaries tax rate, maximising the HKD 60,000 deduction saves HKD 9,000 in tax per year. Over 20 years of contributing, that is HKD 180,000 in cumulative tax savings — before considering the after-tax investment return on the deduction amount itself. For married couples, if both hold QDAPs, the combined saving is HKD 18,000/year.

Yes. The HKD 60,000 QDAP + TVC cap applies per individual taxpayer. If you and your spouse each hold separate QDAP policies and/or make TVC contributions, you can each claim up to HKD 60,000, potentially saving up to HKD 18,000/year combined at the 15% rate.

The combined QDAP + TVC cap is HKD 60,000. With HKD 30,000 already going to TVC, you have HKD 30,000 of remaining QDAP deduction capacity. We recommend structuring your QDAP premiums to exactly fill this remaining capacity, maximising the combined deduction without exceeding the cap.

This depends on the structure of the payments. Annuity payments from a QDAP that represent a return of your own capital (i.e., non-profit element) are generally not taxable as income. The profit/interest element of annuity payments may be assessable to tax. In practice, for most QDAP holders at retirement age with lower overall income, personal allowances often shelter any taxable annuity element entirely.

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Cette page fournit uniquement des informations générales. Pour un conseil adapté à votre situation, veuillez consulter un professionnel de la fiscalité de Hong Kong qualifié.