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Qualifying Deferred Annuity Policy


In view of the ageing population, the Government has proposed a tax deduction for premiums for deferred annuity products to promote voluntary retirement savings. The Insurance Authority (IA) has been tasked by the Government to issue guidelines to set out the criteria for deferred annuity products to become a Qualifying Deferred Annuity Policy (QDAP).

Deferred Annuity as a Retirement Planning Tool

An annuity is a retirement planning tool that can help individuals turn their accumulated savings into a stable stream of income over a certain period of time, allowing them to spend their retirement savings in a disciplined way to deal with longevity risk. There are many variants of annuities. A deferred annuity is one of them.

A deferred annuity involves an accumulation phase and an annuitisation phase. During the accumulation phase, the purchaser pays premiums regularly over a period of time.  Usually, there is an interim period between the payment period and the annuity period to allow the paid-up sum to grow through investment by the insurer. Upon annuitisation, the annuitant receives regular payments during the annuity period.

In general, a deferred annuity is more suitable for working adults who are far from retirement because they have a longer period to accumulate wealth through regular savings when they have a stable income.

To learn more about the features of annuities, please visit the educational sitelet, jointly developed by the IA and the Chin Family, which is managed by the Investor and Financial Education Council.

Tax Deduction for a QDAP

Taxpayers are allowed to claim a tax deduction for their qualifying deferred annuity premiums up to a maximum limit of HK$60,000* per assessment year. For detailed arrangements, please refer to the dedicated webpage on Tax Deductions for QDAP and Tax Deductible MPF Voluntary Contributions and the Inland Revenue Department’s website.

The IA will certify deferred annuity products that meet the criteria for becoming QDAPs. For details of the criteria, please refer to the guideline issued by the IA. Only premiums paid for those certified as QDAPs are eligible for tax deductions under the salaries tax and personal assessment.  The list of the certified policies is available at:

The product brochure of a QDAP must clearly indicate the IA’s certification of the deferred annuity product as a QDAP and carry the QDAP logo as shown below:
Qualifying Deferred Annuity Policy


QDAP Selection Made Easy

QDAP Selection Made Easy is a quick and easy tool to allow members of the public who are interested in a QDAP to find one that suits their needs. By simply answering five questions, the tool will sort out the QDAPs that meet the user's preferences and provide key product information at the same time. The tool also provides members of the public with a full list of available QDAPs in the market.

Currently, different insurers offer a number of QDAPs with different product features, including the issue age, policy currency, premium payment period, annuity (income) payment periods, annuity commencement age and internal rate of return. This tool helps users select the QDAP that best matches their personal needs and save time searching for product information for reference. While the tool provides an encompassing overview of all the QDAPs, policyholders should always choose a QDAP that fits their personal needs (suitability) and financial affordability.

Click QDAP Selection Made Easy to start.

Members of the public who are considering taking out a QDAP should visit the following pages to learn more about the arrangements.

* The tax deductible limit is an aggregate of qualifying deferred annuity premiums and MPF tax-deductible voluntary contributions.