As your MPF expert, BCT accompanies you in reaching your MPF goal and building your retirement wealth. You can now set up BCT TVC account and make additional MPF contributions into it, while enjoying both rebate and tax deductions. Help you to realize an ideal retirement life.
TVC bonus unit rebate is calculated on the basis of total net asset value of members’ relevant account at the end of each month.
Below is the illustrative example of calculation.
|Mr. Wong has made new TVC of HK$60,000 during the promotion period of "TVC Reward Together" and selected BCT (Pro) Global Bond Fund under the BCT(MPF) Pro Choice 2.1.3|
|Bonus unit rebate arsisng from the annual preferential management fee after setting up TVC account with BCT||An extra, one-off TVC Special Bonus Unit Rebate after joining "TVC Rewards Together"||Bonus unit rebate earned credit to Mr. Wong in this campaign 2.1.3|
|0.61%||0.8%||0.61% + 0.8% = 1.14%2.1.3|
|HK$60,000 of TVC contribution x 1.41% of bonus unit rebate = HK$846
will be credited to Mr. Wong's TVC account and tax saving of HK$10,200
Special Voluntary Contributions (SVC)
You can start saving and investing to build your wealth by making contributions as low as HK$3004 per month. BCT provides a diversified fund investment platform to help you make use of special voluntary contributions for the future.
Tax Deductible Voluntary Contributions (TVC)
Enjoy tax concessions with new TVC contributions in 2021/22
Tax savings up to HK$10,2002.
Calculate your tax saving with the TVC Tax Deduction Calculator
TVC Tax Deduction Calculator
Total Annual TVCHK$300
No. of Children
No. of Dependent Parents
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|1.||For details of constituent funds and management fees, please read the MPF scheme brochures of BCT (MPF) Pro Choice and/or BCT (MPF) Industry Choice. For details of Preferential Management Fee, please read the promotion leaflet of BCT Personal Retirement Solution.|
|1.1.||“Management fees” include the fees of the trustee, administrator, custodian, sponsor and investment manager of a scheme for providing their services to the relevant funds. They are usually charged as a percentage of the net asset value of a fund. In the case of the Core Accumulation Fund and the Age 65 Plus Fund, management fees payable to the parties named above, or their delegates, can only (subject to certain exceptions in the Mandatory Provident Fund Schemes Ordinance) be charged as a percentage of the net asset value of the DIS Fund. These Management Fees are also subject to a statutory daily limit equivalent to 0.75% per annum of the net asset value of the DIS Fund which applies across both the DIS Fund and its underlying funds.|
|1.2.||Preferential Management Fee in respect of a fund is arrived at by applying Bonus Unit Rebate to the Standard Management Fees of that fund. The calculation of Preferential Management Fee of each fund is shown as follows: “Preferential Management Fee = Standard Management Fees – the rate of Bonus Unit Rebate”. Bonus unit rebate is calculated on the basis of total net asset value of the relevant account at the end of each month. If there is no asset in the relevant account at the end of that month, no bonus unit rebate for that month will be granted. As the Preferential Management Fees of DIS funds are the same as the Standard Management Fees, there will no bonus unit rebate. Bonus unit rebate will be credited to the relevant account after the end of each quarter. If the member terminates the relevant account or all assets in the relevant account have been transferred out before the end of the quarter, bonus unit rebate for that quarter will be forfeited..|
|2.||Pursuant to the relevant provisions of “Inland Revenue Ordinance”, tax deductions for each employee is subject to a maximum limit of HK$60,000 per assessment year. Such maximum tax deductible limit is an aggregate limit for TVC and qualifying deferred annuity policy premiums. If the total amount of TVC made in a year of assessment exceeded the maximum tax deductible limit, the amount of excess will not be eligible for tax deduction. Please note that contributions in TVC account (including tax deductible portion and non-tax deductible portion) are subject to the same vesting and preservation rules and withdrawal restrictions applicable to mandatory contributions, i.e. Withdrawal cannot be made until employees reach the age of 65 or unless on other statutory grounds under The Mandatory Provident Fund Schemes Ordinance. The actual tax savings depend on personal income level, entitled tax allowances and deductions as well as the amounts of qualifying deferred annuity policy premiums paid or the amounts of TVC made. Based on the prevailing highest tax rate (i.e. 17%) and the maximum tax deductible limit of HK$60,000, the maximum tax savings can be HK$10,200. Bank Consortium Trust Company Limited will provide a TVC summary to each TVC account holder within 40 days after the end of every year of assessment. The contribution summary will list out all the TVC made to BCT by the TVC account holder in the last assessment year, to facilitate tax return filing by TVC account holder.|
|3.||Contribution amount for TVC can be as low as HK$300 (applicable to monthly contributions through autopay) or HK$500 (applicable to one-off contributions). No minimum investment duration. Monthly contribution amount may be adjusted.|
TVC Tax Deduction Calculator Terms and Conditions
- This TVC Tax Deduction Calculator is a simple tax calculator developed by BCT based on the tax deductions and allowances in the 2020/21 year of assessment to calculate the tax payable under salary tax or personal assessment. All calculators did not take into account the tax reduction measure proposed in the 2021/22 Budget.
- This TVC Tax Deduction Calculator assumed the dependent children as non-new born dependent children. Based on the 2020/21 year of assessment, the allowances for each non-new born dependent child is HK$120,000.
- This TVC Tax Deduction Calculator assumed the dependent parents as parents aged 55-59 and not living with the taxpayer. Based on the 2020/21 year of assessment, the allowances for each dependent parent aged 55-59 and not living with the taxpayer is HK$25,000.
- Based on the 2020/21 year of assessment, the Single Person’s basic allowance is HK$132,000; the Married Person’s basic allowance is $264,000.
- This TVC Tax Deduction Calculator assumed the total annual income inputted by the user is the total personal annual income including annual salary, commission, bonus and allowance. If the user indicated as married, the income of the spouse was assumed to be zero under joint assessment for the 2020/21 year of assessment.
- This TVC Tax Deduction Calculator assumed the user meets the tax deduction requirement for MPF Mandatory Contributions in the 2020/21 year of assessment. Based on the 2020/21 year of assessment, the tax deductions for MPF Mandatory Contributions is 5% of the total relevant income, with a cap of HK$18,000.
- This TVC Tax Deduction Calculator assumed that the TVC inputted by the user are all the TVC made within the assessment year and assumed that the user did not pay any premium to any QDAP.
- This TVC Tax Deduction Calculator assumed that the user did not meet the requirement of allowances / deductible items other than those considered in this calculator.
- This TVC Tax Deduction Calculator is calculated based on the progressive tax rate and standard tax rate offered in the 2020/21 year of assessment. The calculator would compare the tax payable result generated from the two tax rates and use the lower tax payable result for calculating the tax payable before and after making TVC contributions. “Deductible Tax Payable” is calculated as the difference between tax payable before and after making TVC contributions.
- This TVC Tax Deduction Calculator is for reference only. It does not reflect your actual personal tax payable, net chargeable income and tax deductible amount. The taxation requirement for the 2020/21 year of assessment (including but not limited to tax rate, tax bands and allowance), on the website of the Inland Revenue Department shall prevail. Should there be a need for actual tax calculation, please visit the salary tax estimation calculator provided by the Government.
- Should there be any dispute arising from this Tax Deduction Calculator, BCT’s decision should be final and decisive.
- Tax deductions for each employee is subject to a maximum limit of HK$60,000 per assessment year. Such maximum tax deductible limit is an aggregate limit for TVC and qualifying deferred annuity policy premiums. If the total amount of TVC made in a year of assessment exceeded the maximum tax deductible limit, the amount of excess will not be eligible for tax deduction. Please note that contributions in TVC account (including tax deductible portion and non-tax deductible portion) are subject to the same vesting and preservation rules and withdrawal restrictions applicable to mandatory contributions, i.e. Withdrawal cannot be made until employees reach the age of 65 or unless on other statutory grounds under The Mandatory Provident Fund Schemes Ordinance.
- You should consider your own risk tolerance level and financial circumstances before making any investment choices or investing according to the Default Investment Strategy. When, in your selection of funds or the Default Investment Strategy, you are in doubt as to whether a certain fund or the Default Investment Strategy is suitable for you (including whether it is consistent with your investment objective), you should seek financial and / or professional advice and choose the investment choice(s) most suitable for you taking into account your circumstances.
- In the event that you do not make any investment choices, please be reminded that your contributions made and / or accrued benefits transferred into the Plan will be invested in accordance with the Default Investment Strategy, which may not necessarily be suitable for you.
- Your investment decision should not be based on this document alone. Please read the MPF Scheme Brochure for BCT (MPF) Pro Choice and/or BCT (MPF) Industry Choice for further details, including the risk factors.
- BCT (Pro) MPF Conservative Fund does not guarantee the repayment of capital. An investment in the MPF Conservative Fund is not the same as placing funds on deposit with a bank or deposit taking company and there is no obligation to redeem the investment at the subscription value. The MPF Conservative Fund is not subject to the supervision of the Hong Kong Monetary Authority.
- Investment involves risks. Past performance is not indicative of future performance. The price of constituent funds may fall as well as rise.