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ARTICLE

Feeling the tax burden? Don't miss out on these 3 smart tax-saving solutions!

4-min read

Updated on 2026-01-22

Author：AIA Content Editorial Team

Plan your future + Save taxes easily!

Smart financial planning starts with early preparation! In Hong Kong, there are many ways to save on taxes. By choosing any of the following three government-recognised tax-deductible solutions, you can plan for a healthier future for yourself or your family and supplement your retirement savings—while saving up to tens of thousands of your tax bill.

A woman is choosing a government-approved tax-deductible plan that helps plan a healthy future, boost retirement savings, and save on taxes to reduce the overall tax burden.

1. Voluntary Health Insurance Scheme (VHIS) – Enhance your medical protection

What is VHIS?

An individual hospital insurance plan certified by the Hong Kong Health Bureau, meeting minimum requirements¹ including:
✔ Guaranteed renewal up to age 100
✔ Coverage for unknown pre-existing conditions
✔ Transparent premiums and coverage

Tax benefit

The annual tax-deductible premium limit for policyholders is HK$8,000 per insured person. You can insure yourself or specified relatives², with no limit on the number of people.

Tax-saving examples

Assuming a tax rate of 17%, premiums of HK$8,000 × 17% = HK$1,360 tax saved.

Insure your family members living in Hong Kong for a healthy future, and save more on taxes!

2. Qualifying Deferred Annuity Policy (QDAP) – Create your own retirement income

What is QDAP?

An annuity product that meets Insurance Authority requirements³, including:
✔ Minimum total premium of HK$180,000
✔ Minimum payment period of 5 years
✔ Annuity payout starts no earlier than age 50, and is paid over at least 10 years

Tax benefit

Each taxpayer can claim up to HK$60,000⁴ per year in tax deductions.

For married couples who each hold a QDAP (both must be annuitants), they can flexibly allocate the combined annual tax deduction limit of HK$120,000 (HK$60,000 per person).

Tax-saving examples

Assuming a tax rate of 17%, premium HK$60,000 × 17% = HK$10,200 tax saved.

For taxpaying married couples, total savings can reach HK$20,400 (HK$120,000 × 17%)!

3. Tax-Deductible Voluntary Contributions (TVC) – Flexible retirement savings top-up

What is TVC?

An additional voluntary contribution account under the MPF scheme, with flexible contribution options:
✔ No fixed contribution schedule or amount
✔ Increase, decrease, pause, or restart contributions anytime

Tax benefit

Contributions to a TVC account are tax-deductible and share the HK$60,000⁴ annual cap with QDAP.

Tax-saving examples

Assuming a tax rate of 17%:

Example 1: TVC contribution HK$60,000 × 17% = HK$10,200 tax saved.

Example 2: Pay HK$40,000 for QDAP + HK$20,000 for TVC = total tax deduction HK$60,000 × 17% = HK$10,200 tax saved.

AIA has won the 'Best TVC Provider' award for 6 consecutive years⁵

Smart planning starts with leveraging government-approved tax-deductible solutions to secure your future while saving taxes with ease!

_{The content of this article is for reference only and AIA Hong Kong shall not be liable for any loss or damage of any kind incurred by any person because of the use or misuse of any information or content in this article, or reliance on it. AIA does not provide any tax or accounting advice. For details on tax deductions, please visit the website of Inland Revenue Department (IRD) of HKSAR or contact IRD for tax related enquiries. You can also consult your tax and accounting advisors for tax advice. AIA does not provide tax and accounting advice.}

^1.Source: Health Bureau of the Hong Kong SAR Government – Voluntary Health Insurance Scheme

^2.Specified relatives are defined under Inland Revenue Ordinance (Cap 112).

^3.Source: Investor and Financial Education Council – What is a qualifying deferred annuity policy ("QDAP")?

^4.HK$60,000 is the maximum tax deductions per taxpayer per year for qualifying annuity premiums and MPF tax deductible voluntary contributions.

^5.The end date for the assessment period of the above awards is 31 December 2024 and the awards are for reference only. The ratings and awards are given on the basis of MPF Ratings' assessment criteria. Assessment criteria include, but are not limited to, investment performance, scheme governance, fund choice, administration and management, financial education, and use of applied technology, Assets Under Management, ease of use of online platforms, contribution payment methods and ease of use, and promotion of environmentally friendly measures, etc.