LSP Tax Deduction Estimator
Estimate your potential tax-deductible amount for Long Service Payment provisions.
Estimated Tax Deduction 1
HK$ 0
When you have already recognised the LSP provision in your financial statements, taking into account the MPF offsetting abolition.
Estimated Tax Deduction 2
HK$ 0
When this is the first year you recognise the LSP provision in your financial statements, taking into account the MPF offsetting abolition.
Assumptions:
- No MPF balance offset
- No mortality rate applied (assumed minimal)
- Discount rate as of 31 March 2026 (derived from Hong Kong Government Bond Yield risk-free rates)
- Turnover rate based on Census and Statistics Department (C&SD) survey data by industry
Disclaimer:
This LSP Tax Deduction Estimator is a simplified tool designed to provide a high-level estimate of the potential tax-deductible amount for Long Service Payment (LSP) provisions.
- The calculations are based on user-provided averages and industry-level assumptions only. They do not constitute a full actuarial valuation.
- For actual tax deduction LSP assessment, the company should engage a professional party to perform a fairly accurate assessment that complies with HKAS 19 and to issue a formal report suitable for financial reporting and tax deduction purposes.
- The estimated tax deduction amounts shown are based on the inputted estimated profit level and the applicable Hong Kong profits tax rates (two-tiered system: 8.25% on the first HK$2 million of assessable profits and 16.5% on the remainder for corporations).
- The company and the tool provider accept no liability for any loss arising from reliance on this estimator.
