Number of MPF tax-deductible voluntary contributions accounts rises 67pc in three years

The number of tax-deductible voluntary contributions (TVC) accounts of the Mandatory Provident Fund (MPF) Schemes has increased to around 70,000 as of September, according to the MPF watchdog.

Ayesha Macpherson Lau, the chairwoman of the Mandatory Provident Fund Schemes Authority (MPFA), said Sunday that the number of TVC accounts has risen steadily each year since its launch in 2019. 

The number rose 10 percent compared to the 64,000 accounts recorded last year, and was 67 percent higher than three years ago. 

Meanwhile, the cumulative amount of TVC received is HK$9.2 billion as of September.

Lau said out of the total MPF contributions of HK$65 billion, 24 percent (~HK$15.3 billion) were voluntary contributions in the first nine months of this year. Among that, 78 percent were voluntary contributions made by employers.

The total amount of voluntary contributions, which was HK$1.7 billion in the first nine months of 2004 when the statistics were first collected, had increased by eight times to HK$15.3 billion in the first nine months of this year.

Lau mentioned that TVC aimed to encourage employees to make additional MPF contributions through tax incentives to save for the future and increase their retirement reserves.