Hi,
So last year I started my own sole proprietorship business, as I went freelance. I paid my business registration fees and did the right thing, I thought, until I came to file my tax return last week.
Only then did I realise that I should have started an MPF fund within 60 days of starting the business - back in May 2014. Call me naive, (which I was), but I genuinely had no idea I had to do so - and at no point was this mentioned to me. I am and will remain the company's only employee, while the amount of income I've made has been less than 60k for the entire FY - so I'm hardly trying to save a buck.
So I called MPF to see if I can backdate it to last year and pay a one-off annual contribution, but they say that I should have started it within 60 days of registering the business. They referred me to the non-compliance part of the website where they mention a $50,000 fine and 6 months prison!
If anyone could advise what my options may be, I'd be hugely grateful.
Thank you.
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Ed
9 yrs ago
I moved out of HK some years ago and finally got around to dumping my MPF and getting the funds out --- the hoops I had to go through (including getting a notarized statement that I was gone from HK) were incredible... I guess the banks don't like anyone to escape their fee grubbing tentacles!
So I am not surprised that they are not helpful ... and are basically threatening you.
You might want to touch base with a lawyer on this as it sounds as if it could get you a pretty serious fine --- Shane Weir is pretty good shane@hongkonglaw.com
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i think you dont have much to be worried about, i would go to the bank and punch them on their noses and then ask them why they are giving false information .
if you are a self employed person and make less than 7100 HKD per month then you are not supposed to make any contribution
http://www.mpfa.org.hk/eng/mpf_system/system_features/contributions/index.jsp
Less than $7,100 per month (or $85,200 per year) No contributions required
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Thanks both ever so much for your feedback, it's really helped. Cheers.
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Just because they refer you to the non-compliance part of their website does not mean they are threatening to fine you and imprison you. It may be their clumsy way of informing you of what the possible consequences are. It's highly unlikely that they're going to come after you when you're an one person company which didn't even have to contribute into their MPF anyway.
Best thing to do is get yourself a MPF and contribute what you're supposed to going forward, if anything. Yes, even if you don't need to contribute anything into it you still need to have a MPF.
Pick the MPF that best suits you and has reasonable fund management fees. Not all MPF's are the same. While it's free to sign up for a MPF, your investment returns will of course depend on the investment manager's performance and the fund management fees they charge.
FYI I work in the industry.
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Best to make an appointment with them face to face.
I received a letter from them threatening fine for some ridiculous hundreds of dollars for payments from a few years back, but I had never been informed about it!!!
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Hello - I am in the same situation as the above and have a few questions that I would really appreciate some guidance on.
Tunglowander what was the outcome of your MPF issues? Would you or anyone else have any further advice on how to deal with this situation?
Thanks,
JJ
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