Ms. Ka Shi Lau, Managing Director & CEO of BCT Group (left) and Ms. Linda Cho, Centre Manager of HKU SSRC (right) at the media briefing on MPF TVC
BCT Group ("BCT") held a media briefing on 26 March 2019 to encourage the public to make use of MPF Tax Deductible Voluntary Contributions ("TVC" -「可扣稅自願性供款」), a new tax incentive introduced by the government to promote voluntary savings for retirement.
BCT commissioned the Social Science Research Centre of the University of Hong Kong ("HKU SSRC") to conduct a survey on public's opinion towards the new tax incentive in January this year. 816 working individuals were interviewed by telephone, and Ms. Linda Cho, Centre Manager of HKU SSRC and Ms. Ka Shi Lau, Managing Director & CEO of BCT had shared the findings of the survey at the briefing:
1) The awareness on TVC was generally low
- 80% of the survey respondents were not aware of the government's proposal on MPF TVC and deferred annuity premiums
- Over 60% did not even know about the existing tax concession of up to $18,000 on mandatory contributions
2) Respondents expressed interest in tax deductions arrangement when being offered more information
- Respondents with full time employment, a higher personal income, and paid salaries tax for the assessment year 2017-18 were more likely to show interest
- For those who expressed interest in the arrangement, over 60% were interested in making TVC
- Respondents liked the directness, familiarity and flexibility of MPF investment
3) Disinterest stems from a lack of understanding
- Two major reasons for disinterest: (1) lack of understanding of the entire arrangement (20.1%) (2) no spare money (16.7%)
4) Respondents expressed interest in using an online platform that facilitates easy contributions and tax saving
- Over 70% of respondents would like to obtain relevant information through the media and the internet
- More than 40%, particularly those who were 30 years old or younger, or with a higher personal income, expressed interest in using an online platform for efficient contribution arrangement
"Do it right, save more" - BCT helps taxpayers save taxes and time
Ms. Lau said that the survey results reflected a low level of public awareness on the new arrangement, and relevant promotions and education campaigns to be released after 1 April would promote better understanding. Moreover, the preference towards MPF TVC shared by a number of respondents indicated a certain level of familiarity on MPF investment for its simple and flexible contribution model. "To save more, you got to do it right. BCT will be offering our full support to members so that they can make full use of the new policy. Since contributors will be required to open a separate account to keep track of tax deductions, BCT will be launching a digital DIY platform 'eChannel', where TVC account can be opened online in three steps – fill in, upload and eSign, hence members can enjoy tax concessions efficiently. We will also provide relevant information via various channels in a timely manner, so that members and the public can learn more about this new tax-saving tactic."