Are MPF contributions tax deductible in Hong Kong?

Employer (profits tax). The employer's annual contributions to a recognised retirement scheme or regular Mandatory Provident Fund (MPF) contributions are deductible, limited to 15% of the employee's total emoluments for the period.

Employee (salaries tax). Mandatory contributions paid by an employee are deductible up to HK$18,000 for 2025/26. The cap is the same for each individual regardless of the number of jobs, MPF schemes or businesses, so contributions above it are not deductible.

Self-employed (sole proprietor or partner). Mandatory contributions paid as a self-employed person are deductible, up to HK$18,000 a year (2019/20 onwards). Contributions for a spouse are not deductible, and the business cannot deduct other pay or contributions for the owner.

Voluntary contributions. Only contributions to a tax-deductible voluntary contribution (TVC) account qualify, together with qualifying deferred annuity premiums, up to a combined HK$60,000 a year (2019/20 onwards). Other voluntary MPF contributions are not deductible.

Practical points

• The deduction reduces taxable income, so it saves tax at your marginal rate.
• Keep MPF statements as evidence.
• MPF is administered by the MPF Authority; the contribution obligations themselves are not covered here.

The 2026-27 Budget did not change these deduction limits.