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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 period of time. 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.

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


In view of the COVID-19 outbreak, the IA has rolled out a set of temporary facilitative measures to reduce the risk of infection from face-to-face meetings between intermediaries and their clients. The measures, which will last until 30 April 2023, allow insurers and intermediaries to dispense with the need to conduct a Financial Needs Analysis in the selling process of a QDAP, provided that they have duly performed upfront disclosure of important information with their clients and applied an extended cooling-off period that lasts no less than 30 calendar days for the delivery of policy documents through the mail and for policy holders to seek professional advice if necessary. Insurers and intermediaries must continue to adhere strictly to the principle of fair treatment of customers. For details, please refer to the IA circulars issued to authorized life insurers on 21 February, 27 March, 15 June, 4 September, 2 December 2020, 24 February, 27 May, 13 September 2021, 4 March and 9 September 2022.

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.