Im trying to figure out what would be the best way to make the most money. But I cant make up my mind about which way to go lol. If overthinking was a super power then I woulda been so badassOriginal Post Deleted
Im trying to figure out what would be the best way to make the most money. But I cant make up my mind about which way to go lol. If overthinking was a super power then I woulda been so badassOriginal Post Deleted
How much money do you need to make in order to benefit from the TVC?
It depends. It's best to use the IRD's tax calculators to figure out if at least some if not more than 60,000HKD of your HK taxable income is hit with the 17% standard tax rate.
Check out the IRD calculators at https://www.gov.hk/en/residents/taxe...omputation.htm
The calculator can't make the best TVC decision for you but it can do the math required based on your inputs. As for future actual returns with specific funds, you'll just have to use your preferred crystal ball for that.
You pay 17% tax on taxable income over $200,000 (taxable income is income less deductions such as married person allowance, children allowance, etc). So if your taxable income over $200k, then the TVC benefits you. This is quite a low threshold, benefitting the masses.
If you are planing to live in HK your whole life, then there might be a bit of hesitation whether to do or not, since the money will be locked up until retirement. But if you are an expat planning to leave HK at some point in the not too distant future, you can redraw it when you leave HK to start your next adventure, thus making it a completely no brainer decision for most expats.
There is a clear loophole here for expats to save on tax. Any expat not taking out TVC should be ashamed of themselves for not saving tax and punishing the government for creating stupid systems with stupid loopholes.
The $60k TVC which I took out with AIA on 4th December last year and saved me $10k in taxes, is today worth $59,940.83. Given all the shit of the last 6 months, I cannot complain about this. I wish all my other investments were worth what they were last December too .
I looked for the lowest expense ratio one that tracked the HSI. Thus, I choose BEA's 0.72% FER BEA Hong Kong Tracker Fund in their BEA (MPF) Value Scheme. I would have picked HSBC (even though their HSI tracker has an FER of 0.79%) because I already have all my MPF money with them, a credit card with them, and a joint account, but alas they don't allow U.S. citizens to open up a TVC account with them. So I found BEA. However, others might suit your needs/wants better.
I assume you've already played around with MPFA's comparison tool at https://mfp.mpfa.org.hk/eng/mpp_list.jsp
As for which provider will currently offer the best TVC sign-up bonus, you'll have to shop around as I only recall the deals that applied in the 2019/2020 tax year.