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2. How are the contributions made to an MPF scheme deducted for tax purposes?

With effect from 1 December 2000, 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 and Schedule 3B 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. 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.


*Note: Normally the profit derived from a partnership business is not reported on “Individual” Tax Return (B.I.R.60). But if the taxpayer switched from an “employee” to a “partner of a business” during the year of assessment, all of the relevant income/profit can be reported through an Individual Tax Return.