HSBC, BOCHK and AXA to mobilise entire networks as Hong Kong rolls out tax incentive schemes

Under Voluntary Health Insurance Scheme, the government will offer HK$8,000 in tax incentive per person per year

Government will offer HK$60,000 for either enrolment in a tax-deductible annuity scheme or voluntary contributions to MPF

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Retirement is a ‘key theme’ of HSBC’s Asia wealth strategy, the bank, one of Hong Kong’s three currency-issuing lenders, has said. Photo: Sam Tsang

Published: 6:00am, 1 Apr 2019Updated: 6:00am, 1 Apr 2019

Financial companies including HSBC and Bank of China (Hong Kong), two of the city’s three currency-issuing banks, as well as insurers AXA and Sun Life on Sunday said two tax schemes the government is launching on Monday will be available throughout their networks in Hong Kong.

Hong Kong is launching a Voluntary Health Insurance Scheme (VHIS), under which the government will offer HK$8,000 in tax incentive per person per year for the purchase of health insurance cover up till the age of 100 years.

The pension scheme being launched has two parts and the government will offer HK$60,000 per person per year for either enrolment in a tax-deductible annuity scheme or voluntary contributions to the city’s Mandatory Provident Fund.

HSBC said it would offer its tax-deductible annuity and MPF voluntary contribution schemes at all 100 branches in Hong Kong.

“The tax deduction initiative is a good long-term incentive to encourage Hong Kong people to save more for retirement,” said Greg Hingston, head of retail banking and wealth management for Hong Kong at the bank. “Retirement is a key theme of our Asia wealth strategy.”

French insurer AXA has said it will sell two VHIS plans, one with standard features and one at higher price but with more cover. Photo: Nora Tam

The bank will offer two annuity products for those aged between 41 and 70. Clients can contribute over between five and 10 years and can get monthly payments over between 10 and 20 years, or up to the age of 99.