MPF voluntary contribution
強積金自願性供款
An MPF voluntary contribution is money added to an MPF account on top of the mandatory contributions, which employees and self-employed people can both make. The part paid into a tax deductible voluntary contribution (TVC) account can be claimed as a deduction when salaries tax or personal assessment is worked out, with a yearly cap, and the cap is the amount the Inland Revenue Department publishes. Money in the MPF can generally be taken out only at the statutory age or when a statutory condition is met.
Example
Suppose HK$10,000 goes into a TVC account (within the cap) and the marginal tax rate is 10%.
- Voluntary contribution (TVC)
- HK$10,000
- Marginal tax rate
- 10%
- Tax saved
- about HK$1,000
- Withdrawal
- Generally only at the statutory age or on a statutory condition
The tax bill falls by about HK$1,000, but the money stays locked until a statutory condition is met.
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