Tom joined Tai Koo Ltd on 1 April 2015 and worked as an accountant

Law May 01, 2022

Tom joined Tai Koo Ltd on 1 April 2015 and worked as an accountant. He resigned from Tai Koo Ltd effective 30 June 2020. His accrued benefits in the MPF scheme in respect of employer's voluntary contributions is $70,000. The amount of proportionate benefit which can be exempt from salaries tax is:

Expert Solution

The employer's voluntary contribution in MPF scheme is not tax exempt but tax deductible. Therefore, the answer here is zero.

Step-by-step explanation

An employer can claim tax deduction for the mandatory and voluntary contributions made for an employee, to the extent that it does not exceed 15% of the employee's total emoluments. But since the question here in the problem is the amount of exempt from tax, therefore we can conclude that the exempted is zero.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote