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For sole-proprietors/self-employed (freelancers, commission agents, taxi drivers,hawkers...)

 

 

Who can claim

If you are a self-employed person and have made the following contributions in the preceding year, you may claim relief for the contributions you have made subject to a cap. You can only claim self-employed CPF relief if you have assessable net trade income.

 

If you are a self-employed person and contributed the following in the year preceding the Year of Assessment

If you are a self-employed person who is also an employee and contributed the following in the year preceding the Year of Assessment

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How much you can claim

Please refer to Table 1 for the CPF relief caps for the different YAs.
The following two examples that illustrate the amount of tax relief allowed.

 

Example 1: Self-employed person

You are a self-employed person who has made compulsory Medisave contributions and voluntary CPF contributions in the year 2013. For YA2014, your tax relief for your Medisave and voluntary CPF contributions will be capped at the lower of:

  • 36% of your net trade income assessed; or
  • CPF relief cap of  $30,600; or
  • Actual amount contributed by you.

No CPF relief will be allowed in respect of your compulsory Medisave or voluntary CPF contributions made in 2013 if you have no assessable net trade income for the Year of Assessment  2014.

Example 2: Self-employed person who is also an employee

You are an employee as well as a self-employed person who has made the following contributions in the same year:

a. Compulsory CPF contributions as an employee;
b. Compulsory Medisave contributions as a self-employed person; and
c. Voluntary CPF contributions.

If your total compulsory CPF contributions as an employee (a) and your compulsory Medisave contributions as a self-employed person (b) is less than the CPF relief cap for self-employed persons.

Your tax relief for the voluntary CPF contributions (c) will be capped at the prevailing CPF contribution rate for the year.

If your total compulsory CPF contributions as an employee (a) and compulsory Medisave contributions as a self-employed person (b) is more than the CPF relief cap for self-employed persons.

No tax relief will be allowed for your voluntary CPF contributions (c), as the total compulsory CPF contributions as a employee and compulsory Medisave contributions as a self-employed has exceeded the CPF releif cap.

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CPF Relief Cap

Table 1: CPF Relief Cap for Self-Employed Persons


 Year of Assessment 

2008 to 2010

2011

2012

2013 2014

Net Trade Income Ceiling

$76,500

$76,500

($4,500 x 17mths)

$79,333

($4,500 x 17mths x 8/12) + ($5,000 x 17mths x 4/12)

$85,000

($5,000 x 17mths)

$85,000

($5,000 x 17mths)

CPF contribution rate

34.5%

34.5%
(1.1.10 to 31.8.10)
35%
(1.9.10 to 31.12.10)

35%
(1.1.11 to 28.2.11)
35.5%
(1.3.11 to 31.8.11)
36%
(1.9.11 to 31.12.11)

36%

36%

CPF Relief Cap

$26,393

$26,775

(35% x $4,500 x 17mths)

$30,600

(36% x $5,000 x 17mths)

$30,600

(36% x $5,000 x 17mths)

$30,600

(36% x $5,000 x 17mths)

 

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When is the relief allowed

CPF relief is allowed based on the date of payment. For example, to claim for the CPF relief in the Year of Assessment 2014, you must have made the contribution by 31 Dec 2013.

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How to claim

If you have made Medisave contributions or voluntary CPF contributions during the year, the relief will be automatically allowed in the following year. If you are both a self-employed person and an employee, please make your own Medisave contributions separately from your employees by using the form "CPF/Medisave Contribution Form for Self-Employed", to enable CPF Board to correctly determine your Medisave contributions made for the year. For more information on how to make Medisave contributions or voluntary CPF contributions, please visit CPF Board website. 

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Last Updated on 5 June 2014


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