Does Contribute-As-You Earn (CAYE) contributions qualify for tax relief?
Similar to other forms of self-employed CPF contributions, Contribute-As-You Earn (CAYE) contributions will qualify for tax relief based on the date of payment. CAYE contributions made in a calendar year will qualify for tax relief in the following year. For example, relief on CAYE contributions made between 1 January 2024 and 31 December 2024 will qualify for tax relief in the Year of Assessment (YA) 2025 subject to the assessable net trade income (NTI) for this YA.
The CPF relief allowable to self-employed persons (SEPs) for his MediSave and voluntary CPF contributions, including CAYE contributions, will be capped at 37% of his NTI assessed or CPF relief cap of $37,740 or the actual amount contributed by SEP whichever is the lowest. There is no tax relief for your mandatory or voluntary CPF contributions if your assessed NTI for the year of assessment is zero or negative.
