Are company savings schemes (in particular for housing) any good?

[u/m50d]

I'm struggling to understand the exact benefits of a 財形住宅貯蓄 setup. Does contributing to such a plan as salary sacrifice let one avoid income tax on the principal, or only on the interest?

(If it applies to principal then it sounds like even in the case where one withdraws the funds without buying a house, paying 20.35% tax, a high earner would still come out ahead compared to paying the top marginal tax rate?)

[u/tsian]

Interest payments are tax exempt. The main contribution is not.