CPF (Central Provident Fund) Relief for Self-Employed

Self-employed persons who may also be employees may claim contributions made to their CPF accounts to reduce tax payable.

Qualifying for CPF Relief

To qualify, the self-employed person (who may also be an employee) must have contributed to any of the following in the year preceding the Year of Assessment:

Amount of CPF Relief

CPF Relief Cap for Self-Employed Persons

Year of Assessment

2008 to 2010

2011

2012

2013 to 2015 

2016

2017

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)

 $102,000

($6,000 x 17 mths)

CPF contribution rate

34.5%

34.5%
(1 Jan 2010 to 31 Aug 2010)
35%
(1 Sep 2010 to 31 Dec 2010)

35%
(1 Jan 2011 to 28 Feb 2011)
35.5%
(1 Mar 2011 to 31 Aug 2011)
36%
(1 Sep 2011 to 31 Dec 2011)

36%

37%

37% 

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)

$31,450 
(37% x $5,000 x 17mths)

$37,740

(37% x $6,000 x 17 mths) 

 

CPF Contributions by a Self-Employed Person

You are a self-employed person who has made compulsory Medisave contributions and voluntary CPF contributions in the year 2016.

For YA 2017, your tax relief for your Medisave and voluntary CPF contributions will be capped at the lower of :

  • 37% of your net trade income assessed; or
  • CPF relief cap of $37,740; or
  • Actual amount contributed by you.

No CPF relief will be allowed in respect of your compulsory Medisave or voluntary CPF contributions made in 2016 if you have no assessable net trade income for the Year of Assessment 2017.

CPF Contributions by a 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:

  1. Compulsory CPF contributions as an employee;
  2. Compulsory Medisave contributions as a self-employed person; and
  3. 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 relief cap.

Claiming Relief

CPF relief is allowed based on the date of payment . For example, to claim for the CPF relief in the Year of Assessment 2017, you must have made the contribution by 31 Dec 2016.

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 as a self-employed person separately by using the form 'CPF/Medisave Contribution Form for the Self-Employed'.

For more information on how to make Medisave contributions or voluntary CPF contributions, please visit CPF Board website.

Please note that there will be a personal income tax relief cap of $80,000, which will apply from the Year of Assessment (YA) 2018. This cap applies to the total amount of all tax reliefs claimed, including any relief on compulsory/voluntary CPF contributions made on or after 1 Jan 2017.

There will be no refund for accepted voluntary CPF contributions. As such, taxpayers who make voluntary CPF contributions on or after 1 Jan 2017 should take note of the overall personal income tax relief cap. You should evaluate whether you would benefit from tax relief on your voluntary CPF contributions and make an informed decision accordingly.

  • Can I obtain a refund of the voluntary CPF contributions I made in year 2017, if for YA 2018, the total amount of personal relief which I can claim is more than $80,000, even without any tax relief on voluntary CPF contributions I made?

     

    There will be no refund for accepted voluntary CPF contributions. As such, taxpayers who make voluntary CPF contributions on or after 1 Jan 2017 should note that the overall personal income tax relief cap of $80,000 applies from YA 2018 (when the income earned in 2017 is assessed to tax). Hence, you should evaluate whether you would benefit from tax relief on your voluntary CPF contributions, and make an informed decision accordingly.

     

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