Hong Kong - Retirement schemes
In Hong Kong, the Mandatory Provident Fund Scheme Ordinance ("MPFSO") came into effect on 1 December 2000. Under a Mandatory Provident Fund Scheme, each of the employee and employer is required to contribute 5% of the employee's monthly relevant income to the fund. The maximum level of income for contribution purpose is HK$30,000 per month (effective 1 June 2014). Accordingly, the maximum mandatory contribution for each of the employee and employer is HK$1,500per month (effective 1 June 2014). An employee whose income is less than HK$7,100 (effective 1 November 2013) per month is not required to make mandatory contributions. However, the employer of such employee is still required to contribute and amount that is equal to 5% of the employee's monthly income.
Our services include:
MPF administration
- Calculating individual employee's relevant income and amount of contribution for each contribution period, deducting the appropriate mandatory contribution from the employee's relevant income, computing the employer's statutory contribution as well as additional voluntary contributions, if the employing entity elects to have a scheme which provides for benefits in excess of the MPF statutory minimum;
- Providing a remittance statement and arranging payment to the Trustee of the MPF scheme for the employer's and employee's MPF contributions; and
- Notifying the administrators of the commencement and cessation of employment of staff and changes in amounts of contributions (if applicable).
Occupation Retirement Scheme Ordinance ("ORSO")
- Advise on the Hong Kong salaries tax implications of the ORSO scheme and the associated employer reporting obligations;
- Consider the regulatory requirements under the ORSO associated with the scheme and how this would impact the salaries tax treatment of the scheme;
- Determine the feasibility for the scheme to obtain an exemption under the ORSO; and
- Assist the Company to make an application for an exempt certificate in respect of the scheme.
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