Promise yourself a prosperous retirement with guaranteed monthly annuity payments

HSBC Life has been helping fulfill retirement promises with annuity plans for more than a decade. Now, in step with the government's tax incentives for retirement planning, HSBC Life offers two brand new qualifying deferred annuity plans tailored to help you save more today for a comfortable retirement tomorrow. With the deferred annuity plans, you could be eligible for lowered taxes that could be rolled into future savings. Learn more about your income tax deduction opportunities from the following information and see which might be right for you.

Taxpayers could be eligible for tax deductions of up to HKD60,0001 as an individual or HKD120,0001 as a married couple per year. With HSBC’s retirement options, you could save up to HKD10,2002 per person or HKD20,4002 for a married couple each year.

Enjoy tax deductions with a total premium from HKD180,000 with our qualifying deferred annuity policies (QDAP).

Pay less tax now and save more for your retirement at the same time.

How does tax deduction for deferred annuities work?

Qualifying Deferred Annuity Policy (QDAP)

  1. What is a QDAP?

    A QDAP refers to a qualifying deferred annuity policy certified by the Insurance Authority that can help policyholders realise potential tax deductions. Matters including but not limited to the minimum premium payment period, minimum total premiums, minimum annuity period and the annuitant’s minimum age when the annuity period starts must meet the requirements set out by the Insurance Authority in its Guideline on QDAP. The annuitant (as taxpayer) of a QDAP can claim for potential tax deductions of up to HKD60,000. Not all private deferred annuity plans in the market are eligible for tax deductions. If you would like to apply for a QDAP and receive a tax deduction, please refer to the plan details and its criteria for tax deductions.

  1. Can I claim tax deduction for QDAP covering my spouse?

    A taxpayer can claim tax deduction for qualifying annuity premiums paid under a QDAP covering his/ her spouse as joint annuitant, or either the taxpayer or his /her spouse as a sole annuitant. A taxpaying couple is allowed to freely allocate tax deduction for qualifying annuity premiums amongst themselves to claim the total deductions of HKD120,000, provided that the deduction claimed by each person does not exceed the individual limit (HKD60,000).

Arrangements for a tax deduction

  1. How to deduct tax with a QDAP Policy?

    You will receive an annual statement of the QDAP. Apply for tax deduction under salaries tax and personal assessment with Inland Revenue Department from your premiums paid of your QDAP. Submit the completed Tax Return – Individuals to Inland Revenue Department (IRD) as usual.

To learn more about smart tax deduction, please refer to:

Download Smart Tax Deduction in 4 Steps (10.7MB)

Our deferred annuity products

HSBC Income Goal Deferred Annuity Plan

Receive a steady annuity payment^ for 10 years. A special bonus* may be declared at the first annuity payment.

Apply to enjoy at least 7% discount off the first year premium.

Underwritten by HSBC Life (International) Limited ("the Company"). T&Cs apply. Subject to credit risk of the Company. Early policy surrender may result in a loss.

Learn more

HSBC Early Income Deferred Annuity Plan

Pay 5 years, receive a monthly annuity payment^ for 20 years or up to age 993

Apply to enjoy at least 7% discount off the first year premium.

Underwritten by HSBC Life (International) Limited ("the Company"). T&Cs apply. Subject to credit risk of the Company. Early policy surrender may result in a loss.

Learn more

Smart Tax Calculator

Learn approximately how much you can save potentially as an individual under individual assessment in one assessment year (for example:1 April 2019 to 31 March 2020).

Personal Information

1. Your Income for the year of assessment :
HKD

Salaries tax is chargeable on most but not all of the income from employment, offices and pension, including any salary, salary, wages or director’s fees, arising in or derived from Hong Kong. Any are chargeable to salaries tax, and the gross amounts before the deduction of your contributions to a recognised occupational retirement scheme or mandatory provident fund scheme should be reported. For details, please visit the website of Inland Revenue Department of the Hong Kong SAR.

Source: GovHK website

2. Value of allplacesofresidenceprovidedbyemployer or associated corporation :
HKD

If your employer provides you with a place of residence, rental value (RV) of it should be computed and assessed to salaries tax. For details, please visit the website of Inland Revenue Department of the Hong Kong SAR.

Source: GovHK website

Personal Information

1. Your Income for the year of assessment
(nil)
2. Value of all places of residence provided by employer or assoicated corporation
(nil)
Edit

Deductions

Along with the various allowances available, you may claim other deductions under salaries tax and personal assessment. For details, please visit the website of Inland Revenue Department of the Hong Kong SAR.

Source: GovHK website

In the year of assessment, how much have you spent on:

3. Self-education:
HKD

Expenses of Self-education (including tuition and the related examination fees) paid for a prescribed course of education may be deductible under salaries tax. For details, please visit the website of Inland Revenue Department of the Hong Kong SAR.

Source: GovHK website

4. Elderly Residential Care Expenses Deduction:
a) No. of dependant(s) resided in residential care home:
0
  • 0
  • 1
  • 2
  • 3
  • 4

Under salaries tax and personal assessment, you may claim a deduction for elderly residential care expenses that you or your spouse have paid to a residential care home for the care of a parent or grandparent. A person who is chargeable to tax at the standard rate is also entitled to the deduction. For details, please visit the website of Inland Revenue Department of the Hong Kong SAR

b) Allowable deduction for expenses paid in the year of assessment to residential care home:
HKD

If you or your spouse pays fees to a residential care home for the parent or grandparent of either one of you, you may claim a deduction under the salaries tax or personal assessment. For details, please visit the website of Inland Revenue Department of the Hong Kong SAR.

Source: GovHK website

5. Home Loan Interest:
HKD

Home loan interest that you pay for the acquisition of a dwelling situated in Hong Kong and any car parking space located in the same development of the dwelling can be deducted from your assessable income under salaries tax or from your total income under personal assessment, if prescribed conditions are met. A person who is charged tax at the standard rate is also entitled to the deduction. For details, please visit the website of Inland Revenue Department of the Hong Kong SAR.

Source: GovHK website

6. MPF Mandatory Contributions:
HKD

You can claim deductions for mandatory contributions made to a mandatory provident fund scheme or contributions to a recognized occupational retirement scheme. You should note, however, that all contributions other than mandatory contributions are voluntary contributions and cannot be claimed as deductions. For details, please visit the website of Inland Revenue Department of the Hong Kong SAR.

Source: GovHK website

7. Approved Charitable Donations:
HKD

You can normally claim deductions for donations made to approved charitable organizations. However, not all payments you have made are deductible. For details, please visit the website of Inland Revenue Department of the Hong Kong SAR.

Source: GovHK website

8. Annuity Premiums or MPF Tax deductible Voluntary Contributions (TVC) to be paid:
HKD

With purchased Qualifying Deferred Annuity Policy or contributions to Tax deductible voluntary MPF account, each individual could be eligible for a tax deduction of up to HKD60,0001 per year.

Source: GovHK website

Deductions

3. Self Education
(nil)
4. Elderly Residential Care Expenses Deduction:
a) No. of dependant(s) resided in residential care home
0
b. Allowable deduction for expenses paid in the year of assessment to residential care home
0
5. Home Loan Interest
(nil)
6. MPF Mandatory Contributions
(nil)
7. Approved Charitable Donations
(nil)
8. Annuity Premiums or MPF Tax deductible Voluntary Contributions (TVC) to be paid
(nil)
Edit

Allowance

9. Are you eligible to claim Personal Disability Allowance?
Yes
No

If you are eligible to claim an allowance under the Government’s Disability Allowance Scheme, you can claim this newly introduced Personal Disability Allowance. For details, please visit the website of Inland Revenue Department of the Hong Kong SAR.

Source: GovHK website

10. No. of dependent children who are

You can claim the child allowance if you maintain an unmarried child, who was:

  • under 18 years old; or
  • of or over 18 but under 25 years old, and receiving full time education at a university, college, school or other similar educational establishment; or
  • of or over 18 years old and was, because of physical or mental disability, unable to work.

A “child” means:

  • your own child, adopted child or step child; or
  • child / adopted child / step child of your spouse or former spouse.

For details, please visit the website of Inland Revenue Department of the Hong Kong SAR.

Source: GovHK website

:
a) born in the year of assessment
0
  • 0
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
b) born in other years
0
  • 0
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
11. Are you eligible to claim Single Parent Allowance?
Yes
No

If you have taken ongoing responsibility for the care and supervision to your child, and have satisfied the following conditions:

  • Throughout the year of claim you must not be married.
  • No allowance can be claimed for the year of marriage, divorce, death of your spouse or separation from your spouse. The earliest opportunity to make a claim will be the year following these events.
  • You are granted a child allowance for the year of claim.

No parent can claim the single parent allowance merely on the ground that he or she had made contributions to the maintenance and education of the child. No allowance can be granted for any second or subsequent child.

For details, please visit the website of Inland Revenue Department of the Hong Kong SAR.

Source: GovHK website

12. No. of dependent brothers or sisters
0
  • 0
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9

You can claim dependent brother or sister allowance if you or your spouse maintains an unmarried brother or sister:

  • under 18 years old; or
  • of or over 18 but under 25 years old, and receiving full time education at a university, college, school or other similar educational establishment; or
  • of or over 18 years old and was, because of physical or mental disability, unable to work.

A “brother or sister” means:

  • your natural, adopted or step brother or sister; or
  • the natural, adopted or step brother or sister of your spouse / deceased spouse.

For details, please visit the website of Inland Revenue Department of the Hong Kong SAR.

Source: GovHK website

13. No. of dependent parents or grandparents aged 55 – 59, who

You may claim allowance for parent / grandparent maintained by you / your spouse (not living apart from you) during the year. The dependent parent / grandparent must at any time during the year be:

  • ordinarily resident in Hong Kong;
  • aged 55 or more, or eligible to claim an allowance under the Government's Disability Allowance Scheme; and
  • resided with you / your spouse, without paying full cost, for a continuous period of not less than 6 months or have received from you / your spouse not less than $12,000

If the dependent parent / grandparent resided with you continuously throughout the whole year without paying full cost, you are also entitled to Additional Dependent Parent and Grandparent Allowance.

For details, please visit the website of Inland Revenue Department of the Hong Kong SAR.

Source: GovHK website

:
a) resided with you throughout the year of assessment
0
  • 0
  • 1
  • 2
  • 3
  • 4
b) not resided with you throughout the year of assessment
0
  • 0
  • 1
  • 2
  • 3
  • 4
14. No. of dependent parents/ grandparents allowance (60 plus) or aged under 60 but eligible to claim Government's Disability Allowance, who

You may claim allowance for parent / grandparent maintained by you / your spouse (not living apart from you) during the year. The dependent parent / grandparent must at any time during the year be:

  • ordinarily resident in Hong Kong;
  • aged 55 or more, or eligible to claim an allowance under the Government's Disability Allowance Scheme; and
  • resided with you / your spouse, without paying full cost, for a continuous period of not less than 6 months or have received from you / your spouse not less than $12,000

If the dependent parent / grandparent resided with you continuously throughout the whole year without paying full cost, you are also entitled to Additional Dependent Parent and Grandparent Allowance.

For details, please visit the website of Inland Revenue Department of the Hong Kong SAR.

Source: GovHK website

:
a) Resided with you throughout the year of assessment
0
  • 0
  • 1
  • 2
  • 3
  • 4
b) Not resided with you throughout the year of assessment
0
  • 0
  • 1
  • 2
  • 3
  • 4
15. How many disabled dependant do you have?

You can claim disabled dependant allowance if you or your spouse maintains a dependant who is eligible to claim an allowance under the Government’s Disability Allowance Scheme.

“Dependant” means:

  • your spouse / child / parent / grandparent / brother or sister; or
  • your spouse's child / parent / grandparent / brother or sister.

This allowance is granted in addition for the disabled person.

For details, please visit the website of Inland Revenue Department of the Hong Kong SAR.

Source: GovHK website

Allowance

9. Are you eligible to claim Personal Disability Allowance?
(nil)
10. No. of dependent children who are born:
a) in the year of assessment
(nil)
b. in other years
(nil)
11. Are you eligible to claim Single Parent Allowance?
(nil)
12. No. of dependent brothers or sisters
(nil)
13. No. of dependent parents or grandparents aged 55 – 59, who:
a) are resided with you throughout the year of assessment
(nil)
b) are not resided with you throughout the year of assessment
(nil)
14. No. of dependant parents/ grandparents allowance (60 plus) or aged under 60 but eligible to claim Government's Disability Allowance, who
a) Resided with you throughout the year of assessment
(nil)
b) Not resided with you throughout the year of assessment
(nil)
15. How many disabled dependant do you have?
(nil)
Edit

Tax saved by paying Annuity or TVC

 

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Any information listed and figures calculated on this website and smart tax calculator is for reference only. It is not intended to constitute a recommendation or advice to any prospective customers and is not intended as a substitute for professional advice. You are advised to seek independent tax advice if in doubt. In no event will HSBC Life or HSBC be liable for any damages, losses or liabilities including without limitation, direct or indirect, special, incidental, consequential damages, losses or liabilities, in connection with your or any third party’s use of this website, or your reliance on or use or inability to use the information contained on this webpage.

Please input the amounts below for your assessment year.

1. Net taxable income
HKD

The amount of net taxable income before any TVC and QDAP premium tax deduction.

 
2. Tax-deductible Voluntary Contributions
HKD

Each individual could be eligible for a tax deduction of up to HKD60,000 per year with an aggregate amount of premium of QDAP and contribution to TVC account.

 
3. Premium paid to a QDAP
HKD

Each individual could be eligible for a tax deduction of up to HKD60,000 per year with an aggregate amount of premium of QDAP and contribution to TVC account.

A taxpaying couple is allowed to allocate tax deduction for QDAP amongst themselves to claim the total deductions of HKD120,000, provided that the deduction claimed by each person does not exceed HKD60,000.

 

Taxable income, tax deductions for QDAP and TVC

1. Net taxable income
HKD (nil)
2. Contributions to a TVC
HKD (nil)
3. Premium paid to a QDAP
HKD (nil)
Edit

Approximate tax amount# you can potentially save with QDAP premium and / or TVC tax deduction for a year of assessment:

HKD

Reset

Any information listed and figures calculated on this website and smart tax calculator is for reference and general information only. It is not intended to constitute a recommendation or advice to any prospective customers and is not intended as a substitute for professional advice. You are advised to seek independent tax advice if in doubt. In no event will HSBC Life or HSBC be liable for any damages, losses or liabilities including without limitation, direct or indirect, special, incidental, consequential damages, losses or liabilities, in connection with your or any third party’s use of this website, or your reliance on or use or inability to use the information contained on this website.

For more information about how QDAPs can help you plan your retirement and enjoy potential tax deduction, please contact an HSBC financial advisor.


End Notes

  1. This is the aggregate maximum limit per year for a single taxpayer for both Qualifying Deferred Annuity Policy (“QDAP”) and Tax deductible Voluntary Contributions. The amount of premiums paid under QDAP being certified by the Insurance Authority and the contributions made to a Tax Deductible Voluntary Contribution Account do not represent the actual tax deductions you can get. Whether tax deduction is allowable for all or any part of qualifying annuity premiums paid under QDAP and Tax Deductible Voluntary Contributions shall be subject to your individual circumstances (as taxpayer), the provisions of the Inland Revenue Ordinance (Cap. 112 of the Laws of the Hong Kong SAR) and the Inland Revenue Department's discretion. You are reminded to refer to the website of the Inland Revenue Department (www.ird.gov.hk) for details or to contact them directly for any tax related enquiries.
  2. Based on the highest rate (17%) of the progressive tax rates and a tax payer paying HKD60,000 of qualifying deferred annuity policy or Tax deductible Voluntary Contributions, or a combination of both during the relevant year of assessment. A taxpaying couple can also claim a total deduction of HKD120,000 provided that the deductions claimed by each taxpayer do not exceed the individual limit.
  3. We consider your age to be how old you are on your next birthday. So for example, if you are 54 with a birthday in 6 months’ time, for the purposes of the policy we consider you to be 55.
  • ^ Annuity payment includes both guaranteed annuity payment and non-guaranteed annuity payment (if any).
  • * Special Bonus is a one-off bonus. It is declared at a pre-determined policy year as set out in your plan, or upon early termination of the policy due to, for example, death or surrender before the pre-determined policy year.
  • The discount offer is valid from 16 September to 5 October 2019. Promotional terms and conditions apply. Please visit branch for details.
  • # The tax amount does not take into consideration any one-off tax relief measure which may be introduced by the Hong Kong government.

Disclaimer

Please refer to the product brochures of the respective products for their detailed product features and associated risks, and please refer to the policy provisions for the detailed terms and conditions.

Information on this website relating to Qualifying Deferred Annuity Policies is issued by HSBC Life (International) Limited (“HSBC Life”). HSBC Life is authorized and regulated by the Insurance Authority (“IA”) of the Hong Kong SAR to carry on long-term insurance business in the Hong Kong SAR. The Hongkong and Shanghai Banking Corporation Limited (referred to as "HSBC") is an insurance agent of HSBC Life for the distribution of life insurance products.

Any information listed and figures calculated on this website is for reference only. It is not intended to constitute a recommendation or advice to any prospective customers and is not intended as a substitute for professional advice. You should not act on any information on this website, without seeking specific professional advice. You may find the wealth management plan you need by undertaking an assessment for financial planning. This website provides general information issued from publicly available sources. HSBC Life or HSBC does not provide any form of tax advice. You are advised to seek independent tax advice if in doubt. In no event will HSBC Life or HSBC be liable for any damages, losses or liabilities including without limitation, direct or indirect, special, incidental, consequential damages, losses or liabilities, in connection with your or any third party’s use of this on this website, or your reliance on or use or inability to use the information contained on this webpage.

If you are in doubt about the meaning or the effect of the contents on this website, you should seek independent professional advice. Please note that the tax law, regulations and / or interpretations are subject to change and may affect any related tax benefits including the eligibility criteria for a tax deduction. HSBC Life or HSBC is not responsible for informing you about any changes in laws, regulations or interpretations, and how they may affect you. Further information regarding tax concessions applicable to Qualifying Deferred Annuity Policies may be found at the webpage of the Insurance Authority: www.ia.org.hk.

The above qualifying deferred annuity policies are life insurance plans with a savings element (“Plans”) underwritten by HSBC Life. You are subject to the credit risk of HSBC Life. The Plans provide guaranteed cash value, non-guaranteed dividend and special bonus (only applicable to HSBC Income Goal Deferred Annuity Plan). The dividend and special bonus (if any) will be declared by HSBC Life at its absolute discretion. If surrendered early, the amount to be received may be considerably less than the total premiums paid. The Plans offer features certified by the IA to be compliant with its Guideline on Qualifying Deferred Annuity Policy. Nonetheless, certification by IA does not imply official recommendation does not guarantee you will be eligible for a tax deduction on the premium paid for the Plans. Actual tax deduction under salaries tax and personal assessment with Inland Revenue Department from premiums paid under the Plans is subject to your individual circumstances. It is also at Inland Revenue Department’s discretion when your premiums are paid over the premium payment period. Please refer to the “Key Risks - Tax implication of Qualifying Deferred Annuity Insurance Policy” section of the product brochures for details regarding key risk factors. HSBC Life is incorporated in Bermuda with limited liability, and is one of the HSBC Group’s insurance underwriting subsidiaries. The Plans are intended only for sale through HSBC in the Hong Kong SAR. For monetary disputes arising between HSBC and you out of the selling process or processing of the related transaction, HSBC will enter into a Financial Dispute Resolution Scheme process with you; however any dispute over the contractual terms of the product should be resolved between HSBC Life and you directly.