As a platform operator, you can enjoy tax deductions when you make Voluntary Contributions (VC) to your platform workers under the following conditions:
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For cash top-ups to the Special or Retirement Account (SA/RA) of your platform worker under the Retirement Sum Topping-up Scheme, 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 platform worker’s taxable income, your platform worker will receive
tax relief of up to $8,000 for cash top-ups made in each calendar year. The tax relief that your platform worker will receive also takes into consideration any cash top-ups that he has made to his own SA/RA and MediSave Account (MA).
- For cash top-up to the MA (up to the Basic Healthcare Sum, which can qualify your platform workers for the Matched MediSave Scheme), 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 platform worker’s taxable income, your platform worker will receive tax relief* of up to $8,000 for cash top-ups made in each calendar year. The tax relief that your platform worker will receive also takes into consideration any cash top-ups that he has made to his own SA/RA and MA.
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For VC to your platform worker’s MA (up to the platform worker’s
CPF Annual Limit), you will enjoy tax deductions on the voluntary MediSave contributions of up to $2,730 per platform worker. These contributions are also tax exempt up to $2,730 for the platform worker, but will not qualify the worker for the Matched MediSave Scheme.
* If your platform workers are eligible to receive matching grant under the or the , they will not receive tax relief for the top-ups that attract the matching grant.
