What are the conditions for me to enjoy tax relief?
For cash top-ups made on or after 1 January 2022, you can enjoy annual tax relief of:
- up to $8,000 (previously $7,000) when you top up to your own Special/Retirement Account and/or MediSave Account*; and
- an additional tax relief of up to $8,000 (previously $7,000) when you top up your loved ones’ Special/Retirement Account and/or MediSave Account.
The conditions for you to enjoy tax relief are as follows:
- The tax relief cap will be shared for cash top-ups to Special Account (SA) and Retirement (RA) and cash top-ups to MediSave Account (MA) *. Learn more about the tax relief changes from 1 January 2022.
- For cash top-ups to self and your loved ones, tax relief only applies to cash top-ups up to the current Full Retirement Sum (FRS). Log in with your Singpass to see how much you can top up to yourself.
- Your loved ones include parents, parents-in-law, grandparents, grandparents-in-law, spouse and siblings.
- If you are making cash top-ups for a spouse or sibling, you will only be eligible for the tax relief if the recipient's income in the previous year does not exceed $4,000 or if the recipient is handicapped^. In this instance, income would include income from bank interest, dividend and pension, investment income/rental income/directorship income. An example of a handicapped person is someone with visual-impairment, loss of hearing, loss of limb and dementia.
- If you are making a cash top-up to the SA/RA of your employee on his behalf, you will be eligible for an equivalent amount of tax deductions for the cash top-ups made. While such a cash top-up will be included in your employee's taxable income, your employee will receive tax relief of up to $8,000 for cash top-ups made in each calendar year. The tax relief that your employee will receive also takes into consideration any cash top-ups that he has made to his own SA/RA and MA.
- If you would like to make a CPF contribution to your employee’s MediSave Account as an employer, please do so under the Additional MediSave Contribution Scheme (AMCS) to be eligible for tax deductions on your contribution. AMCS contributions are tax-free for employees.
- There is a personal income tax relief cap of $80,000, which applies to all tax reliefs, including tax relief on cash top-up made to your CPF accounts.
Learn more about tax relief.
*The changes related to cash top-ups to MediSave Account do not apply to MediSave contributions made in the capacity of a self-employed person (SEP). If you would like to make MediSave contributions in the capacity of a SEP, visit the Self-Employed Scheme page for more information on topping up your MediSave Account.
^This refers to people who are incapacitated because of physical or mental infirmity.