What is the maximum MPF contribution?
What is the maximum MPF contribution?
Under the MPF Ordinance, his mandatory contribution to a MPF scheme should be $15,000 for year of assessment 2020/21. The allowable deduction under profits tax will be $15,000….Mandatory Provident Fund Schemes.
| Year of assessment | Maximum deduction ($) |
|---|---|
| 2015/16 onwards | 18,000 |
Can I contribute more to MPF?
Any contributions exceeding 5% of your salary would be regarded as voluntary contributions to the MPF scheme and not deductible for tax purposes. For ROR schemes, there is no mandatory contribution. Hence, you are allowed to opt to contribute from 0 to 10% of your monthly salary.
Is MPF taxable in HK?
Upon withdrawal of MPF by scheme members, the sum derived from mandatory contributions is not taxable. Generally, when employees withdraw their MPF derived from voluntary contributions, only the voluntary contributions made by their employers may be taxable (depending on the circumstances and timing of the withdrawal).
How does MPF work in Hong Kong?
Your monthly contributions will be deducted directly from your salary into the MPF account on a monthly basis, and the contributions (both yours and your employer’s) will then be used to buy units in the funds you have personally chosen in your MPF scheme.
How do I get my MPF back in Hong Kong?
Scheme members may withdraw their MPF in a lump sum or by instalments. Scheme members are required to make a statutory declaration that they have departed or will depart from Hong Kong to reside elsewhere with no intention of returning for employment or to resettle in Hong Kong as a permanent resident.
Is MPF required?
Except for exempt persons, employees and self-employed persons aged 18 to 64 are required to join an MPF scheme under the MPFSO.
Is MPF compulsory in Hong Kong?
The system is mandatory for all employees in Hong Kong who have an employment contract of 60 days or more and applies also to the self-employed between ages 18 and 65. Total contributions are capped at HK$1,500 a month. Employees and self-employed are required to contribute 5% of their earnings to their MPF fund.
What happens to my MPF when I leave Hong Kong?
If you’re leaving permanently, you can withdraw your accrued MPF benefits as a tax-free lump sum. You must declare that you have no plan to return to Hong Kong for employment, and provide evidence that you’re permitted to reside elsewhere. The relevant application can be found on the MPF website (mpfa.org.hk).
Can I withdraw from my MPF?
According to the MPFSO, scheme members can withdraw their MPF only when they reach the age of 65. Early withdrawal of MPF is allowed under certain specific circumstances, including early retirement, permanent departure from Hong Kong, total incapacity, terminal illness, small balance or death.
