
MPF System
MPF Tax Matters
Employees
An employee can claim tax deduction for the employee’s mandatory contributions made to an MPF scheme, subject to the maximum amount as follows: $18,000 for the year of assessment 2015-16 and each subsequent year of assessment.
Voluntary contributions made by employees are not tax-deductible, except for tax-deductible voluntary contributions.
Employers
An employer can claim tax deduction for the mandatory and voluntary contributions made for an employee, to the extent that it does not exceed 15% of the employee’s total emoluments.
Self-employed persons (SEPs)
Voluntary contributions made by SEPs are not tax-deductible, except for tax-deductible voluntary contributions.