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)

An SEP can claim mandatory contributions which the SEP has made for himself/herself 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: $18,000 for the year of assessment 2015-16 and each subsequent year of assessment.

Voluntary contributions made by SEPs are not tax-deductible, except for tax-deductible voluntary contributions.