Like Tree16Likes
  • 7 Post By bdw
  • 6 Post By Cheeky Kiwi
  • 2 Post By chuckster007
  • 1 Post By bdw

Should I withdraw MPF

Reply
  1. #1

    Join Date
    May 2021
    Posts
    3

    Should I withdraw MPF

    Hi I'm due to leave HK for a job elsewhere in Jan 2022. Should I withdraw my MPF entirely? What if I find an opportunity here again in the future, will there be a penalty?

    Separately, my company still hasn't issued me my IR56G yet. My last day is next week and thereafter I'll be on a break before starting my new role in Jan 2022 elsewhere. Is there enough time for tax clearance?

    Thanks.


  2. #2

    Join Date
    Feb 2009
    Posts
    7,046

    If you withdraw, come back in future, no penalties. But you cannot withdraw a second time until you reach retirement age.

    Also if you havent done already, open an MPF TVC account now and stick $60k in this. Then withdraw both the MPF and MPF TVC. This will save you an instant HK$10k in taxes whilst doing tax clearance (if your taxable income is over $200k).

    Yes there is enough time for tax clearance. You can do it all in half a day in Wan Chai. Just bring cash with you to pay your taxes, then can do everything and get release letter at once. If you pay by other than cash, needs a few days to clear and then you have to go back a 2nd time to get release letter.


  3. #3

    Join Date
    Feb 2012
    Posts
    97

    what is MPF TVC?


  4. #4

    for carrie's sake, google


  5. #5

    Join Date
    Feb 2005
    Location
    Island East
    Posts
    6,834
    Quote Originally Posted by rainylin:
    what is MPF TVC?
    google shows this

    https://www.mpfa.org.hk/en/mpf-syste...-contributions
    Cheeky Kiwi and rainylin like this.

  6. #6

    Join Date
    May 2021
    Posts
    3

    This is really helpful and thanks! If I set up a TVC account and leave in say one/two months' time, I'll be eligible for the HK$10K tax savings, yeah? (i.e. no minimum holding/vesting period). Tried googling for this but can't seem to find a satisfactory answer. Thanks.


  7. #7

    Join Date
    Feb 2009
    Posts
    7,046
    Quote Originally Posted by eluwin:
    This is really helpful and thanks! If I set up a TVC account and leave in say one/two months' time, I'll be eligible for the HK$10K tax savings, yeah? (i.e. no minimum holding/vesting period). Tried googling for this but can't seem to find a satisfactory answer. Thanks.
    Yes you will be eligible for the savings, no minimum period. I did this when I left HK last year. Just open a TVC account and transfer $60k into it, then go to tax office to do your tax clearance, at this time claim an extra $60k in deductions. This translated to $10k less in taxes you will have to pay (if your taxable income over $200k). Once you've settled your tax, then you can apply to withdraw the TVC, as well as your regular MPF.
    chuckster007 likes this.

  8. #8
    Quote Originally Posted by bdw:
    Yes you will be eligible for the savings, no minimum period. I did this when I left HK last year. Just open a TVC account and transfer $60k into it, then go to tax office to do your tax clearance, at this time claim an extra $60k in deductions. This translated to $10k less in taxes you will have to pay (if your taxable income over $200k). Once you've settled your tax, then you can apply to withdraw the TVC, as well as your regular MPF.
    If I have already left HK and ceased employment there (couldn’t return due to covid), am in the process of arranging final tax clearance with IRD, and have not yet withdrawn MPF due to permanent departure, is it too late to open TVC account?

  9. #9

    Join Date
    May 2009
    Posts
    1,057
    Quote Originally Posted by newcomerhk:
    If I have already left HK and ceased employment there (couldn’t return due to covid), am in the process of arranging final tax clearance with IRD, and have not yet withdrawn MPF due to permanent departure, is it too late to open TVC account?
    Well depends on 2 things. How far are you with the final Tax? I mean if you have already submitted it then you might be too late unless you can send in a revised one. Other issue might be if the TVC providers will allow you to open a TVC account while not residing in HK anymore and some of them you have to drop in physically in one of their branches.

  10. #10
    Quote Originally Posted by Sith:
    Well depends on 2 things. How far are you with the final Tax? I mean if you have already submitted it then you might be too late unless you can send in a revised one. Other issue might be if the TVC providers will allow you to open a TVC account while not residing in HK anymore and some of them you have to drop in physically in one of their branches.
    Thanks for this, there’s been a lot of back and forward with IRD as they messed a lot of things up so they are now drip feeding various tax demands and rebate cheques to me. The final tax hasn’t been cleared yet and no letter of release has been issued. For 2021/22 I have only been issued with the assessment form which I haven’t submitted yet. I thought the complicating factor might be the date of permanent departure for MPF purposes - it’s not entirely clear what date should be entered on this form when the date of actual departure and the date when it became clear I wasn’t coming back are very different. If I already know I’m not coming back then I wondered if opening a TVC account at this stage is basically a form of tax evasion (in which case I wouldn’t do it of course!).