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MPF System

Tax Concessions

Employee


Employees can claim tax deductions for their employee’s mandatory contributions made to an MPF scheme, subject to the maximum amount as follows:

(i)$15,000 for the year of assessment 2013-14;
(ii)$17,500 for the year of assessment 2014-15; and
(iii)$18,000 for the year of assessment 2015-16 and each subsequent year of assessment.

Any voluntary contributions made by employees are not tax deductible.

Employer


Employers can claim tax deductions for the mandatory and voluntary contributions made for their employees, to the extent that they do not exceed 15% of the employee’s total emoluments.

Self-employed Person


Self-employed persons can claim mandatory contributions which they have made for themselves to an MPF scheme as allowable business expenses for Hong Kong Profits Tax purposes. The maximum amount that can be claimed for deduction is as follows:

(i)$15,000 for the year of assessment 2013-14;
(ii)$17,500 for the year of assessment 2014-15; and
(iii)$18,000 for the year of assessment 2015-16 and each subsequent year of assessment.

Any voluntary contributions made by self-employed persons are not tax deductible.

TVC Account Holders


TVC account holders can claim tax deductions under salaries tax or tax under personal assessment for the tax deductible voluntary contributions (TVC) made for themselves.  The maximum amount that can be claimed for tax deduction is $60,000 for the year of assessment 2019-20 and each subsequent year of assessment.

The above maximum amount that can be claimed for tax deduction is the aggregate amount for both TVC and qualifying deferred annuity premiums*.  TVC account holders should be responsible to keep track of the total amount of TVC made and qualifying deferred annuity premiums paid in a year of assessment for filing of tax return.

*Qualifying deferred annuity premiums means premiums paid for deferred annuity products that satisfy a set of criteria set out in the guidelines issued by the Insurance Authority.

Last Revision Date: 01/04/2019