What is MPF ?

MPF refers to “Mandatory Provident Fund”. Nowadays, Hong Kong is facing with a challenge of rapidly ageing population. The percentage of population over the age of 65 will be increased from 15% (in 2014) to 36% (in 2064) and less working aged adults will support the retirees. In order to help the ageing workforce to save for their retirement, the MPF system was launched in December 2000.

The MPF System in Hong Kong belongs to the second pillar in three-pillar approach which was recommended by World Bank: a mandatory, privately managed, fully funded contribution scheme. There are three types of MPF Scheme in Hong Kong:

1. Master Trust Schemes

The most common type of MPF scheme which pools together contributions from various employers and their employees, and contributions from self-employed persons. This scheme is the most efficient in terms of scheme administration due to economies of scale.

2. Employer-sponsored Schemes

The membership in this type of scheme is limited to the employees of a single employer and its associated companies. Due to its restriction in membership, it is only cost-effective to run an employer-sponsored scheme if the number of employees is large.

3. Industry Scheme

It is established for employees of the catering and construction industries, particularly casual employees (i.e. workers employed on a day-to-day basis or for a fixed period of less than 60 days). They do not need to change schemes when they change jobs within these two industries, so long as their previous and new employers have registered with this scheme.

 

The contribution for employer and employee is shown below:

(Both full-time and part-time employees are covered by the MPF System.)*

Monthly Relevant Income Amount of Mandatory Contributions Payable by Employer Amount of Mandatory Contributions Payable by Employee
Less than $7,100 Relevant income x 5% No contributions required
$7,100 to $30,000 Relevant income x 5% Relevant income x 5%
More than $30,000 $1,500 $1,500

The contribution for self-employed person is shown below:

(The person who above or 18 but under 65 years of age must enroll themselves in an MPF scheme within 60 days after they have become self-employed.)*

Relevant Income: Mandatory Contributions
Less than $7,100 per month

(or $85,200 per year)

 No contributions required
$7,100 to $30,000 per month

(or $85,200 to $360,000 per year)

 Relevant income x 5%
More than $30,000 per month

(or $360,000 per year)

 $1,500 per month (or $18,000 per year)

 

什么是强积金？

强积金是指“强制性公积金”。如今，香港正面临人口快速老化的挑战。65 岁以上人口比例将从 15%（2014 年）提高到 36%（2064 年），减少工作的老年人将支持退休人员。为帮助老龄化劳动力为退休储蓄，强积金制度于2000年12月推出。
香港的强积金制度属于世界银行推荐的三支柱方法中的第二支柱： 强制性的、私人管理的、全额资助的供款计划。香港共有三种强积金计划：
1. 主信托计划
最常见的强积金计划类型，汇集了不同雇主及其雇员的供款，以及自雇人士的供款。由于规模经济，该计划在计划管理方面是最有效的。
2. 雇主资助计划
此类计划的成员资格仅限于单一雇主及其关联公司的雇员。由于其成员资格的限制，只有在雇员人数众多的情况下，运行雇主赞助的计划才具有成本效益。
3. 行业方案
是为餐饮业和建筑业的雇员而设立的，特别是临时雇员（即日常工作或固定期限少于 60 天的工人）。他们在这两个行业内换工作时不需要改变计划，只要他们的之前的和新雇主都已在该计划中注册即可。
 
雇主和雇员的供款如下所示：
(全职及兼职雇员均受强积金制度保障。)*
每月相关收入
雇主须缴付的强制性供款金额
雇员须缴付的强制性供款金额
低于 7,100 港元
相关收入 x 5%
无需捐款
7,100港元至 30,000 港元
相关收入 x 5%
相关收入 x 5%
超过 30,000 港元
1,500 港元
1,500 港元
自雇人士的供款如下：
（年满 18 岁但未满 65 岁的人必须在成为自雇人士后的 60 天内加入强积金计划。）*
相关收入：
强制性供款
每月少于 7,100 港元
（或每年 85,200 港元）
无需捐款
每月 7,100 至 30,000 港元
（或每年 85,200 至 360,000 港元）
相关收入 x 5%
每月超过 30,000 港元
（或每年 360,000 港元）
每月 1,500 港元（或每年 18,000 港元）

Personal Assessment

If you are a sole proprietor, a partner in a business or a property owner, you can elect for personal assessment if you are eligible. This may help to reduce the tax you need to pay by aggregating your assessable income under salaries tax, profits tax and property tax, and making adjustments for the deductions. The balance, if any, will be taxed at the same rates as those used for salaries tax.

You may elect personal assessment if:
1. You are 18 years of age or older, or under that age if both parents are deceased; and
2. You are a permanent or temporary resident of Hong Kong, or your spouse is if you are married.

Net chargeable income : On the first $40,000
Progressive rate: 2%Net chargeable income : On the next $40,000
Progressive rate: 7%

Net chargeable income : On the next $40,000
Progressive rate: 12%

Net chargeable income : On the remainder Progressive rate:17%

You can calculating your tax under personal assessment in here:http://www.gov.hk/…/residents/taxes/etax/services/tax_compu…

2016/17 a better year for entrepreneurs and business startups.

The budget for 2016/17 just launched! This year far more entrepreneurs will benefit from the government as supporting funds and schemes focusing on startups (especially for small and medium-sized enterprises) grow. Several important benefits for SMEs are shown below:

1. A decrease in the profit tax

In order to reduce the burden on SMEs, the government will reduce the profit tax by 75% from 2015/16. This will benefit about one hundred and thirty thousand taxpayers.

2. Waiving of the business registration fee for 2016/17

Business owners will not have to pay the Hk$2250 business registration fee in 2016/17.

3. Allocation of additional funds to attract tourists

The government will allocate HK$240 million funds to major Hong Kong events in 2016/17,  in order to rebuild the cosmopolitan image of Hong Kong through the Hong Kong Tourism Board and the subsidization of SMEs travel agents.

4. Enhance SME Financing Guarantee Scheme

The application period for SME Financing Guarantee Scheme will be extended . Therefore, more small and medium-sized enterprises (SMEs) can obtain financial support from participating lenders to meet their working capital and business needs, in order to enhance their productivity and competitiveness in the rapidly changing business environment.

5. The Launch of Pilot Technology Voucher Programme

The government will allocate 500 million to the Innovation & Technology Fund to subsidise SME’s use of technological services and solutions, to upgrade and improve their productivity and upgrade of business processes through Information Technology.

6. License fees waived for hotels, travel agents and restaurants

In order to reduce the operation cost of the tourism industry, the Hong Kong Government has proposed waiving the license fee for 1,800 travel agents, 2,000 hotels and guesthouses, and 27,000 restaurants, hawkers, and operators with restricted food permits for one year.

For more information on how to take advantage of this opportunity, contact Centre O at sales@centreo.hk.

Why MPFA is not authorising my request of releasing my money?

I’m leaving Hong Kong, why MPFA is not authorizing my request of releasing my money?
 
Answer : You will have to fill in application to request of release of your MPF money back to your bank account, at the same time, you are required to include supporting documents on your application, including new employment contract of where you are relocating, new working visa at another country, and also signing a statutory declaration form for permanent departure.

I’m leaving HK, wen can I get my MPF money back?

I am leaving Hong Kong and have applied for Mandatory Provident Fund  withdrawal, when can I get my money back? 
Answer: In general, it takes 4-5 weeks for your Mandatory Provident Fund agent to proceed with Mandatory Provident Fund Association to get authorization and to release the money back to your requested bank account, which, this is normally a personal bank account you have in Hong Kong.