The content of the website has been revised to include the following:
From YA 2026 onwards, self-employed persons (SEPs) will be allowed tax relief on the full amount of compulsory MediSave contributions made in the preceding year, without any capping restrictions. In other words, SEPs will enjoy relief on the full amount of compulsory MediSave contributions made in the preceding year, even if they have no assessable net trade income for the YA.
The tax relief for the SEPs’ voluntary CPF contributions will be calculated as follows:
- where the amount of compulsory MediSave contributions is more than or equal to 37% of net trade income, no amount is allowed on voluntary CPF contributions.
- where the amount of compulsory MediSave contributions is less than 37% of net trade income, the tax relief for voluntary CPF contributions for a YA would be capped at the lowest of:
- 37% of your net trade income assessed*; or
- CPF annual limit of $37,740*; or
- Actual amount of voluntary CPF contribution made by you.
*Amount less tax relief allowed on compulsory contributions (excluding compulsory contributions as a platform worker who is mandated or opted in to increased CPF contributions)
