2. How are the contributions made to an MPF scheme (MPFS) deducted for tax purposes?
Employees (full-time or part-time) and self- employed persons, except persons exempt under the Mandatory Provident Fund Schemes Ordinance, are required to participate in MPFS.
Under Section 26G of the Inland Revenue Ordinance, mandatory contributions to MPFS are deductible in computing the assessable income/profits of an employee or a self-employed person, but the deduction does not include contributions made by a self-employed person in respect of his/her employees. The deduction cannot be greater than the annual maximum deductible amount. The maximum deduction is $18,000 from the year of assessment 2017/18 onwards. All contributions other than mandatory contributions are voluntary contributions and are not deductible for tax purposes.
For the latest information on deduction for contributions to MPFS and Recognised Occupational Retirement Schemes, please click here.
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