CPF Cash Top-up Relief

Claim tax relief for topping up your own CPF Special/Retirement Account or those of your family members to meet basic retirement needs.

Qualifying for CPF Cash Top-Up Relief

This relief is given to encourage Singaporeans and Permanent Residents to set aside money for retirement needs either in their own CPF accounts or those of family members. To qualify, you must hold a Singapore NRIC and:

  1. You and/or your employer on your behalf have made cash top-ups in the preceding year under the CPF Retirement Sum Topping-Up Scheme to your:
    1. Special Account (for recipients below age 55); or
    2. Retirement Account (for recipients age 55 and above).

  2. You have made a cash top-up in the preceding year under the CPF Retirement Sum Topping-Up Scheme to the Special/Retirement Accounts of your:
    1. Parents or Parents-in-law;
    2. Grandparents or Grandparents-in-law;
    3. Spouse; and/or
    4. Siblings.

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 cash top-ups made on or after 1 Jan 2017.

There will be no refund for accepted cash top-up monies. As such, taxpayers who make cash top-ups 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 cash top-ups, and make an informed decision accordingly.

Top-up through Transfer of Funds

The tax relief is only for cash top-ups. The relief does not apply when the top-up is carried out by transferring funds from your own CPF Account to your own or a family member's Special/Retirement Account.

For more information on the procedures for topping-up the Special/Retirement Accounts under the CPF Retirement Sum Topping-Up Scheme, please visit the CPF website .

Income Threshold for Spouse/Siblings

To claim tax relief for cash top-ups for your spouse or siblings, the spouse or siblings must not have an annual income exceeding $4,000 in the year preceding the year of top-up.

Annual income includes taxable income (e.g. trade, employment and rental), tax exempt income (e.g. bank interest, dividends and pension) and foreign-sourced income regardless of whether it has been remitted to Singapore. This income threshold does not apply to parents, grandparents, handicapped* spouse or handicapped* siblings.

*Incapacitated because of physical or mental infirmity.

In 2016, Mr Lee made a CPF cash contribution of $7,000 to his wife's Special Account. His wife's annual income in 2015 was $5,000.

Top-up Amount to Wife's Special Account in 2016

 $7,000

Wife's Annual Income in 2015

$ 5,000

CPF Cash Top-up Relief for YA 2017

$0

For YA 2017, Mr Lee cannot claim CPF Cash Top-up relief for his wife because her income in 2015 is more than $4,000.

Amount of Relief

Maximum CPF Cash Top-Up Relief per Year of Assessment (YA)

The maximum CPF Cash Top-up Relief per Year of Assessment (YA) is $14,000 (maximum $7,000 for self, and maximum $7,000 for family members).

Amount of Cash Top-up to own or family members' CPF Special/Retirement Account (does not exceed the limit on cash top-up amount for computing tax relief*)

*Refer to the section below, on limit on cash top-up amount for computing tax relief.

Amount of Relief

Below $7,000

Exact amount of cash top-up

$7,000 or more

$7,000


Limit on Cash Top-Up Amount for Computing Tax Relief 

In addition, there is a limit on the amount of cash top-up that qualifies for tax relief.

 Limit on cash top-up amount for computing tax relief
For recipients below age 55Current Full Retirement Sum (FRS)  –  Special Account (SA) savings  –  Net SA savings withdrawn under CPF Investment Scheme (CPFIS) for investments that are still active
For recipients aged 55 years and above

Current Full Retirement Sum (FRS) –  Retirement Account (RA) savings*

*RA savings refers to the cash set aside in the RA (excluding amounts such as interest earned, any government grants received) plus amounts withdrawn.

Since 1 Jan 2016, the maximum top-up amount a recipient aged 55 years and above can receive in his/ her Retirement Account (RA) is determined by the "Current Enhanced Retirement Sum (ERS) – Retirement Account (RA) savings", which exceeds the above limit on cash top-up amount for computing tax relief. This is to allow such recipients to commit higher amounts to CPF LIFE (i.e. up to the ERS), if they choose to receive higher payouts under CPF LIFE.

However, to keep tax benefits focused on supporting basic retirement needs, there is no tax relief for any amount of cash top-up which exceeds the limit on cash top-up amount for computing tax relief (i.e. Current Full Retirement Sum (FRS) – Retirement Account (RA) savings).

For the Years of Assessment (YAs) 2017 and 2018, the applicable FRS and ERS amounts are as shown in the table below. For more information, please refer to CPF Board’s website.

 Applicable Full Retirement Sum (FRS) AmountApplicable Enhanced Retirement Sum (ERS) Amount

YA 2017 (i.e. for CPF cash top-up made in Year 2016)

$161,000

$241,500

YA 2018 (i.e. for CPF cash top-up made in Year 2017)

$166,000

$249,000

 

In Year 2017, Mr Tan wishes to top up $5,000 in cash to his own CPF Special Account and $10,000 in cash to his mother's CPF Retirement Account.

Top-up Amount to own CPF Special Account in Year 2017

$5,000

Top-up Amount to Mother's CPF Retirement Account in Year 2017

$10,000

CPF Cash Top-up Relief (own account)

$  5,000

CPF Cash Top-up Relief (mother's account)

$  7,000
(The maximum CPF Cash Top-up Relief per YA is $7,000 for family members)

Total CPF Cash Top-up Relief for YA 2018

$12,000 ($5,000 + $7,000)

For YA 2018, Mr Tan can claim a total CPF Cash-Top Relief of $12,000.

Mr Ong is under 55 years old. He wishes to top-up $7,000 in cash to his own CPF Special Account (SA) and his mother’s CPF Retirement Account (RA) in Year 2017 to enjoy tax relief for YA 2018. His total SA savings and amount withdrawn from SA under CPFIS is $164,000, and his mother's RA savings is $166,000.

Mr Ong’s own account:

Full Retirement Sum (FRS) in Year 2017

$166,000

Total Special Account (SA) savings and Net SA savings withdrawn under CPFIS for investments that are still active

$164,000

Amount of Cash Top-Up in Year 2017
(As Mr Ong is under 55 years old, the maximum top-up amount he can receive in his SA is an amount determined by "Current FRS – SA savings – Net SA savings withdrawn under CPFIS for investments that are still active")

$2,000 ($166,000 - $164,000)

CPF Cash Top-up Relief for YA 2018

$2,000

Mr Ong’s mother’s account:

Enhanced Retirement Sum (ERS) in Year 2017

$249,000

Full Retirement Sum (FRS) in Year 2017$166,000

Retirement Account (RA) Savings
(Refers to the cash set aside in the RA (excluding amounts such as interest earned, any government grants received) plus the amounts withdrawn.)

$166,000

Amount of Cash Top-Up in Year 2017

$7,000

CPF Cash Top-up Relief for YA 2018 (mother’s account)

$0 (No tax relief for cash top-up as the recipient’s Retirement Account savings has already reached the Full Retirement Sum (FRS).)

How to Claim

You do not need to claim this relief. The relief is granted automatically to those who are eligible based on records sent to us by the CPF Board .
  • I have received my tax bill for the Year of Assessment (YA) 2017. The amount of CPF Cash Top-up Relief is incorrect. What should I do?

    Please send in your request to revise the relief for YA 2017 with a copy of supporting documents via email.

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

    There will be no refund for accepted cash top-up monies. As such, taxpayers who make cash top-ups 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 cash top-ups, and make an informed decision accordingly.

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