MPF Contributions Are Tax-Deductible — Don’t Waste the Allowance

Many employees don’t realise that mandatory MPF contributions are tax-deductible, up to HK$12,000 a year — don’t let the allowance go to waste.

How do you claim?

Just enter your mandatory contributions on your tax return. The employee’s 5% monthly mandatory contribution (capped at HK$1,000) totals up to HK$12,000 a year, claimable as a deduction on the salaries-tax return to cut assessable income directly. Voluntary contributions don’t qualify.

What about the self-employed?

Same deal, same HK$12,000 cap. Mandatory contributions by self-employed persons enjoy the same deduction — claim it on the tax return. Don’t skip it out of laziness and pay extra tax for nothing.

What should you watch?

The deduction isn’t automatic — you must claim it. The taxman won’t deduct it for you; enter the right figure on the return and keep contribution records in case of queries.