⚠ Employer Warning — MPFA Enforcement: Late Contributions Start at HK,000 Penalty
Employers must remit both employee and employer contributions by the 10th day of the month following each contribution period. MPFA enforcement penalties start at HK,000 per employee per late payment period and escalate significantly. Criminal prosecution under the MPF Schemes Ordinance can result in fines up to HK0,000 and imprisonment for up to 4 years.
常见挑战
Incorrect Contribution Calculations
Many employers calculate contributions on gross pay rather than "relevant income" (which excludes severance, long service payment, gratuities, and reimbursements). Both under- and over-contribution trigger MPFA enforcement.
⚠ Risk: MPFA back-payments for all affected employees
TVC Deduction Never Claimed by Employees
The HK,000/year TVC tax deduction is one of the most underutilised deductions in HK. Many employees don't know TVC accounts exist. At 17% marginal rate, this costs HK,200/year.
⚠ Risk: HK,500–HK,200 per year in foregone tax savings
Late Employee Enrolment
New employees must be enrolled in an MPFA-registered scheme within 60 days. Many SMEs miss the enrolment deadline, triggering MPFA enforcement and back-contributions.
⚠ Risk: MPFA penalty + back-contributions for missed period
Wrong Scheme Selection for TVC
TVC must be placed in a designated TVC account — not your regular mandatory account. Different schemes have very different fund options, fee structures, and platforms.
⚠ Risk: Reduced returns over 20–40 years from poor scheme selection
适合对象
SME employers (5–200 staff)
MPF contribution calculations, timely remittance, new employee enrolment, and MPFA compliance audits. We ensure your payroll is fully MPFA-compliant.
HR & finance managers
Calculating "relevant income" correctly, managing the 60-day enrolment grace period, and maintaining MPFA-compliant records for all employee categories.
High-income employees seeking TVC deductions
We advise on opening a TVC account, selecting the right MPF scheme and fund options, and making annual contributions before 31 March.
Self-employed persons
Self-employed individuals aged 18–64 have mandatory MPF contribution obligations. We calculate the correct amount and ensure compliance.
Employees planning to leave HK
Employees permanently departing HK can withdraw their entire MPF including TVCs. We prepare the statutory declaration and support the claims process.
我们的服务
Employer MPF Compliance Audit
We review your payroll procedures to verify relevant income calculations, contribution remittance timing, and employee enrolment compliance.
Full payroll review for all employee categories
Contribution Calculation Review
We verify that "relevant income" is correctly defined and applied for each employee, excluding severance, long service payment, and reimbursements.
Every income component verified against MPFA definitions
TVC Optimisation for Employees
We advise on maximum TVC contribution, optimal scheme and fund selection, timing relative to 31 March year-end, and the combined long-term tax saving.
Combined with qualifying annuity premium: HKK/yr deduction
MPFA Enforcement Defence
If you have received an MPFA enforcement notice, we prepare your defence, calculate back-payment obligations, and represent you in MPFA meetings.
MPFA-authorised representation included
Permanent Departure Withdrawal
We prepare the statutory declaration, advise on documentation, and support the claims process to ensure MPF funds are released promptly upon departure.
Statutory declaration and MPFA claim prepared
服务流程
Initial Assessment — Employer or Employee
Week 1 — FreeFor employers: we review payroll structure, employee categories, and MPF administration. For employees: we review your current MPF scheme, TVC status, and tax position.
Compliance Gap Analysis (Employer)
Weeks 2–3Systematic payroll review identifying incorrect relevant income calculations, late remittances, unenrolled employees, and incorrectly excluded staff categories.
TVC Strategy Development (Employee)
1 weekWe calculate your maximum TVC deduction, model the tax saving, compare available MPF schemes, and advise on optimal contribution amount and timing.
Implementation & Ongoing Monitoring
OngoingWe prepare corrected procedures for employers or TVC account documentation for employees, and provide year-round monitoring of MPFA changes and contribution deadlines.
成功案例
Manufacturing SME, 25 Employees — MPFA Compliance Failure
- •Calculated contributions on gross salary including overtime and reimbursements
- •MPFA employer inspection triggered by 2 months of late remittance
- •Full payroll audit and recalculated contributions for 25 employees over 3 years
“We didn't even know we were calculating relevant income incorrectly. TAX.hk's intervention avoided criminal prosecution.”
Senior Banking Executive — TVC Maximisation Over 10 Years
- •Annual income HK.2M, 17% marginal rate
- •Had never opened a TVC account — contributing only mandatory MPF
- •Maximum TVC of HK,000/year: HK,200/year tax saving, HK0K total benefit at retirement
“I had no idea that TVC contributions would compound to this extent. I now contribute the maximum every year before 31 March.”
常见问题
What are the mandatory MPF contribution rates and caps?
Both employee and employer must each contribute 5% of monthly relevant income. Maximum contribution: HK,500/month per party (income ceiling HK,000/month). Employees earning less than HK,100/month are exempt from employee contributions but the employer must still contribute 5%. Annual tax deduction for mandatory employee contributions is capped at HK,000.
What is a TVC account and how do I open one?
A Tax-deductible Voluntary Contribution account is a separate sub-account within your MPF scheme for tax-deductible voluntary contributions. You can open one with any MPFA-registered trustee — it does not have to be your employer's scheme. TVC funds cannot be withdrawn until age 65 or qualifying circumstances (terminal illness, permanent departure from HK).
How much can I save in tax by maximising TVC contributions?
The maximum TVC deduction is HK,000/year. At 17% marginal rate: HK,200/year saving. At 15% standard rate: HK,000/year. Over 10 years at maximum contributions with 6% investment growth, the total benefit at retirement is approximately HK0,000.
What is "relevant income" for MPF contribution purposes?
Relevant income includes wages, salary, leave pay, fees, commissions, bonuses, and allowances — but excludes severance payments, long service payments, reimbursement of actual expenses, and certain gratuities. Incorrect identification is the most common source of MPFA compliance errors.
What happens if an employer fails to make timely MPF contributions?
Consequences include civil surcharge of 5% per annum on overdue contributions, MPFA enforcement notices, and for persistent defaults: criminal prosecution with fines up to HK0,000 and imprisonment up to 4 years. First-time failures identified through voluntary disclosure are treated more leniently.
需要专业税务服务？
立即联系我们的专业团队，获取免费咨询和报价。我们为个人及企业提供全面的香港税务服务。