Permanent departure? How to withdraw MPF and complete tax clearance procedures?

In response to Hong Kong’s ageing population, the MPF system was finally implemented in Hong Kong in December 2000 to provide retirement protection for employees. The payment will be released when the employee reaches the retirement age, but if Hong Kong people decide to leave Hong Kong permanently, can the MPF accumulated for many years be brought earlier? When Hong Kong people want to settle in a foreign country, how can they apply for withdrawal of MPF and go through tax clearance procedures?

How to receive MPF early?

Referring to the MPFA website, the purpose of establishing MPF is to help employees save and invest in preparation for retirement. According to the current legislation, if a scheme member wants to withdraw MPF early (under the age of 65), whether it is a one-off or instalment withdrawal of accrued benefits, they can only apply for early withdrawal under the following six specific circumstances, and “permanent withdrawal” Hong Kong” is one of:

1. Early retirement at age 60:

Applicants must be at least 60 years old and have terminated all employment and self-employment, and have made a statutory declaration that they do not intend to be employed or self-employed again. They can choose to withdraw MPF in a lump sum or by instalments.

2. Permanently leave Hong Kong (tax declaration):

Applicants must make a statutory declaration that they have left or will leave Hong Kong and have no intention of returning to Hong Kong for work or resettlement as a permanent resident, and must provide evidence that the trustee is satisfied that scheme members are permitted to reside outside Hong Kong.

3 Total incapacity:

If the applicant is permanently unsuitable to perform a specific type of work before incapacity, he can withdraw all his rights and interests, and a medical certificate issued by a registered doctor or Chinese medicine practitioner is required.

4. With terminal illness:

The applicant suffers from any disease likely to reduce his life expectancy to 12 months or less and provides a medical certificate issued by a registered medical practitioner or Chinese medicine practitioner.

5. Small balance:

The applicant only has MPF in one MPF scheme, and the balance does not exceed $5,000, and the date of the applicant’s application for withdrawal of MPF must be at least 12 months away from the last contribution date, and the applicant must also make A statutory declaration means that there is no intention to be employed or self-employed in the future.

6. Death

The MPF of a deceased member is part of the member’s estate and must therefore be claimed by the scheme member’s personal representative or administrator.

How to apply for early withdrawal of MPF after leaving Hong Kong permanently?

If the applicant wishes to withdraw his MPF early due to “permanent departure from Hong Kong”, he may contact the trustee for enquiry and make a claim. After preparing the required documents, the general administrative procedure will pay the claimant to the MPF within 30 days.

Step 1) Prepare the required documents for “Leaving Hong Kong / Intentional Permanent Residence”

In order to withdraw funds from your MPF account, you may need the following documents to prove that you have decided to leave Hong Kong permanently:

To prove that you have “foreign status”, please prepare your local:

• Tax residency certificate

• Identification documents

• Proof of residential address

If you do not have “foreign status”, you can also prepare:

• Approval of VISA applications

• Admission letter

• School acceptance letter

• Certificate of transfer of residency

•        Proof of address

Step 2) Notify MPFA

1 month before the expected date of departure, those who wish to withdraw early MPF must inform the Mandatory Provident Fund Schemes Authority (MPFA), you may need to complete the following forms:

• MPF(S) – W(SD2) “Statutory Declaration”

• MPF(S) – W(O) “Payment of accrued benefits on grounds of permanent departure from Hong Kong”

Please submit the form by phone, email, fax, or go to the bureau in person with your identity document and the above-mentioned written proof of permission to live outside Hong Kong.

Step 3) Submit your tax return

You also need to complete the tax clearance procedures with the Inland Revenue Department as soon as possible. Employee applicants and their employers are also required to submit tax returns to the Inland Revenue Department, and employees should obtain document IR56G from their employers and check with them for tax clearance requirements.

If you need to speed up the process, you can not only call the MPFA directly, but also bring the completed IR56G form and related documents to the Inland Revenue Department for in-person processing. “Consent to Release”.

Employers will still withhold all payments for the month until the “Consent to Release” is received.