2. Is there any limit on deductions for MPF contributions made by employers for their employees?

2. Is there any limit on deductions for MPF contributions made by employers for their employees?

Regular/monthly contributions (whether mandatory or voluntary) made to a MPF scheme by persons as employers for their employees are allowable for deduction. The deduction, however, is limited to 15% of the total remuneration of employees for the period to which the payments relate.

Costs spent by the employer in establishing the MPF scheme (see special treatment to initial or special lump sum contributions to the scheme), amending the rules of or winding up the Recognized Occupational Retirement Scheme are generally deductible under Profits Tax. 

Initial or special contributions made by employer to the MPF scheme are deductible under Profits Tax at an even rate over 5 years starting from the year of payment of such contributions.