4. If I contribute to a Recognized Occupational Retirement Scheme (“RORS”) rather than a MPF scheme, can I still claim deductions?

As from 1 December 2000, employee's contributions to a Recognized Occupational Retirement Scheme ("MPF-exempted RORS") are deductible under the Salaries Tax assessment. However, the maximum amount deductible should be the least of the following 3 amounts:

• the employee's contributions to that scheme for the period of 1 April to 31 March of the following year;
• the amount of the mandatory contributions that the employee would have been required to pay if he had contributed as an employee in a MPF scheme; or
• $12,000.

Example

An employee received an annual remuneration of $180,000. He opted to participate in the RORS operated by his employer. The contributions deductible for Salaries Tax purposes under different scenarios are as follows:

You should also note that the maximum deduction for each year of assessment is $12,000 ( see section 26G(2)(b) and Schedule 3B of the Inland Revenue Ordinance) .