Are CPF contributions payable for partner or sole proprietor of a firm?
CPF contributions are payable for partner who is employed under a contract of service with your firm. Otherwise, he is considered as a self-employed person (SEP) and cannot receive CPF contributions from the firm as an employee.
Sole proprietor of a firm is considered as an SEP. As such, a sole proprietor cannot receive CPF contributions from the firm as an employee.
Do note that an SEP earning an annual Net Trade Income (NTI) of more than $6,000 needs to pay compulsory MediSave contribution. NTI is your gross trade income minus all allowable business expenses, capital allowances and trade losses as determined by IRAS. Please visit the IRAS website to read more on the definition of an SEP.