The Government today welcomed the passage of a bill by the Legislative Council which implements tax deductions for annuity premiums and Mandatory Provident Fund (MPF) voluntary contributions.

The new ordinance gives effect to tax deductions proposed in the 2018-19 Budget.

From the year of assessment 2019-20, taxpayers are entitled to tax deductions under salaries tax and personal assessment for their premiums paid to qualifying deferred annuities and contributions made to tax deductible MPF voluntary contribution accounts.

The maximum tax deductible limit is $60,000 each year per taxpayer.

The Financial Services & the Treasury Bureau said the tax deductions can encourage the working population to make early retirement savings to cope with the financial risk arising from longevity.

People can visit the Chin Family website to learn about the features of qualifying deferred annuities and tax deductible voluntary contributions.

Starting from April, the Insurance Authority and the Mandatory Provident Fund Schemes Authority will publish the list of qualifying deferred annuity products and MPF schemes offering tax deductible MPF voluntary contribution accounts on their websites.