Like Tree9Likes

New Tax Deductions (Voluntary Health Insurance and MPF)

Closed Thread
Page 3 of 3 FirstFirst 1 2 3
  1. #21

    Join Date
    Feb 2009
    Posts
    8,280

    With my existing provider (AIA), after logging in to their website there is a new tab "TVC" which allows me to setup one of these new accounts. I clicked on it and it started to ask me a million questions about job, income, etc so I cancelled it for now. But they do seem to have this up and running now.

    For expats, this seems like a great deal. Pay $5k per month into this account and then save 15% tax. Then when you leave Hong Kong you can get the money back.

    I don't know who has the lowest fees, but AIA has about 10 different fund types with fees around 0.75%-0.79%. Then they have another 10 or so with fees around 1.3%-1.75%. I've got all my mpf going into the lower fee options now.

    Also I'm not sure if the fees on these TVC accounts are the same as regular MPF fees, being in Hong Kong I'm sceptical there is probably some scam going on behind the scenes and the fees on the TVC accounts will probably be double or something ridiculous.

    HK_Katherine likes this.

  2. #22

    Join Date
    Feb 2009
    Posts
    8,280
    Quote Originally Posted by pin:
    Does that mean you can withdraw if you permanently leave HK?
    Yes on the AIA website when creating a new TVC account there is all the terms and conditions that you have to agree to. One of them is that the money you put in the TVC cannot be redrawn until you retire except in a few situations and one of them was clearly if you are departing Hong Kong permanently.

    This is why I write above that this TVC thingy is excellent for expats. It's a way to cut 15% tax and you get all the money back when you leave Hong Kong, no need to wait until you retire.

  3. #23

    Join Date
    Jul 2011
    Posts
    169

    Opened one at my HSBC branch last week. Hassle free. All they needed was my Permanent ID. HSBC's management fees range from 0.75% to 2%. They are running an excellent promo which basically offers you a rebate of $3000 if you pool in a cumulative $180,000 over the next three years. This rebate can go up to $4800 if your employer has received the Good MPF Employer Award in the last two years.


  4. #24

    Join Date
    Oct 2006
    Location
    Hong Kong
    Posts
    15,557

    Now with TVC I think it only really makes sense to stick to DIS and for most funds the DIS fees are around 0.75%. Anyone found anything cheaper for this?

    Better just to stick to existing provider (I think yes to try and keep everything under one roof, even though existing provider still makes you jump through 100s of hoops) or go with a new provider (probably not as the fees are all the same anyway, unless there is a provider which makes the process easier).


  5. #25

    Join Date
    Jun 2012
    Posts
    5

    yes


  6. #26

    Join Date
    Jun 2012
    Posts
    5

    yes


  7. #27

    Join Date
    Oct 2006
    Location
    Hong Kong
    Posts
    15,557
    Quote Originally Posted by 1st mom:
    yes
    Yes to what?

    In any case, serioulsy considering this notwithstanding the criminal level fees for the reason @bdw pointed out.

    I presume there is nothing stopping you from putting a lump sum of HKD60k in one go?