The tax relief calculation depends on whether your recipient is eligible for the Matched MediSave Scheme (MMSS).
If your recipient is not eligible for MMSS:
- You can enjoy tax relief of up to $8,000 per year for top-ups to yourself and another $8,000 per year for top-ups to your loved ones.
If your recipient is eligible for MMSS:
- Your first $1,000 in annual cash top-ups receives government matching grant and no tax relief
- For additional top-ups beyond the matched amount, you can enjoy tax relief of up to $8,000* per year for top-ups to yourself and another $8,000* per year for top-ups to your loved ones.
* The above tax relief cap applies to voluntary cash top-ups to MediSave Account and Special/Retirement Account.
Below are some examples of tax relief computation.
Example 1: In the year, you made cash top-ups totalling $3,000 to an MMSS-eligible recipient (yourself/loved one) who did not receive any other cash top-ups in the year. You did not make any other cash top-ups to yourself or others.
Calculation:
- Estimated matching grant your recipient will enjoy: $1,000
- Estimated tax relief you may enjoy: Total top-up amount ($3000) - Matching grant amount ($1000) = $2,000
Example 2: In the year, you made cash top-ups totalling $3,000 to an MMSS-eligible recipient (yourself/loved one) who has already received $1,000 cash top-ups and a matching grant from another giver in the same year. You did not make any other cash top-ups to yourself or others.
Calculation:
- Estimated matching grant your recipient will enjoy from your cash top-up = $0
- Estimated tax relief amount you may enjoy = Total top-up amount ($3000) - Matching grant amount ($0) = $3,000
To find out if your recipient is eligible for MMSS, your recipient can check his/her eligibility via the
Healthcare dashboard.
