Voluntary contribution of mpf

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Voluntary contribution of mpf

Net total income Total Income — Deductions Standard rate: Base on the above table, progressive rate is more advantageous to people with relatively lower income. Please go to the next question for an illustration of how to compute salaries tax. Normally you would be asked to pay the Salaries Tax and Provisional Salaries Tax by two installments: Assuming that there is no change on your monthly income on this year comparing with the previous year, paying provisional tax is actually not paying tax in advance, nor paying tax on future income.

Under what circumstances can I apply for Voluntary contribution of mpf less tax, or for holding over deferring payment of Provisional Salaries Tax? An application for holding over of provisional salaries tax may be made on one of the following grounds: You have become entitled to an allowance, which was not given in the notice for payment of provisional tax, for example: You are getting married this financial year and your spouse does not have any income.

You have ceased, or will before the end of the year of assessment for which provisional tax was charged cease, to derive income chargeable to salaries tax.

You should state the estimated amount of income for the whole year of assessment in your application and give reason for the reduction of income such as unemployment, retirement and salary reduction.

You have objected to your salaries tax assessment for the year preceding the year of assessment for which provisional tax was charged. Your application must be made in writing and received not later than 28 days before the due date for payment of the Provisional Salaries Tax, or 14 days after the issue of the demand note concerned, whichever is the later.

If the provisional tax is payable by two instalments and the first instalment has been settled by the due date, an application for holding over of the whole or part of the second instalment may be made subject to the prescribed time limit and grounds for application.

How can married persons report their salary income? Married persons can choose "separate taxation" or "joint assessment": Each is required to: Obviously, this will result in some savings in tax for the couple.

If a joint assessment does not result in less tax, the Assessor will automatically issue separate tax bills to each of you instead.

Voluntary contribution of mpf

After initially choosing to have a joint assessment, should you change your mind and withdraw you selection, you will not be allowed to request a joint assessment again in the same year of assessment. The point to note for joint assessment is that both spouses should have income assessable to Hong Kong Salaries Tax for the specific year of assessment in question.

Income chargeable to Salaries Tax 1. My salaries income includes bonus, allowance, and commission. How should I report such income?

You should add up all of the above and fill in Part 4.

FAQ on Mandatory Provident Fund ("MPF scheme")

You should also fill in Box no. Besides, you also should report the total amount of commission income in Box no.At monthly salary of $10,, if you make contributions to a MPF scheme, your mandatory contribution would amount to $ per month.

Voluntary contribution of mpf

In this situation, you may claim deduction in the amount of $6, ($ x 12 months). An additional voluntary contribution is an extra allocation of funds to a retirement savings account that is above the amount that an employer will provide as a . Employer’s Tax Obligation under MPF schemes and Recognized Occupational Retirement schemes Mandatory Provident Fund (MPF) Schemes Normally the employee receives his salaries net of his MPF contribution.

HSBC MPF Admin Guide - Voluntary Contributions - HSBC Hong Kong

Employer's Tax Obligation under MPF schemes and Recognized Occupational Retirement schemes. The extra amount will be considered as voluntary contribution. The mandatory amount they contribute to MPF account can enjoy tax deduction under Salaries Tax.

The maximum amount of tax deduction for is $ However, any voluntary contributions cannot enjoy tax deduction. Employees should take MPF voluntary contributions into account if they want a comfortable retirement, the chairman of the city's pension regulator said in his blog.

In order to provide the MPF service in a more efficient way to our customers, we sincerely advise you to directly mail the administrative documents (to Hang Seng MPF .

Calculator for projecting your MPF accrued benefits