Hong Kong: Qualifying Deferred Annuity Policies (QDAP) and Mandatory Provident Fund (MPF) Tax-Deductible Voluntary Contributions are two tax-deductible retirement savings products being investigated by Hong Kong authorities (TVC).
A combined mystery shopping program is being conducted by the Insurance Authority (IA), the Mandatory Provident Fund Schemes Authority (MPFA), and the Hong Kong Monetary Authority (HKMA) to better understand how these products are promoted. According to the government, this is the first time the three financial authorities have collaborated on an exercise of this nature.
The government stated at the outset of the review:
“Since the Assessment Year 2019-20, the Government has introduced tax deductions under salaries tax and personal assessment to encourage taxpayers to purchase QDAP or make TVC for their retirement savings. As intermediaries play a significant role in assisting taxpayers in making the choice of QDAP and TVC, the three financial regulators would like to better understand their selling practices through the initiative. The [exercise’s] findings will be used to complement the policies and regulatory work of the three regulators and assess the extent to which relevant statutory and regulatory objectives are met.”