Qualifying for relief
CPF Cash Top-up 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:
a. Special Account (for recipients below age 55); or
b. 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:
a. Parents or parents-in-law;
b. Grandparents or grandparents-in-law;
c. Spouse; and/or
For each Year of Assessment, a personal income tax relief cap of $80,000 applies to the total amount of all tax reliefs claimed (including any relief on cash top-ups made).
There will be no refund for accepted cash top-up monies. Please evaluate whether you would benefit from tax relief on your cash top-up before you make an informed decision on whether to make a cash top-up.
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 the following:
Example 1: Income threshold of spouse
In 2020, Mr Lee made a CPF cash contribution of $7,000 to his wife's Special Account. His wife's annual income in 2019 was $5,000. For Year of Assessment 2021, Mr Lee will not be eligible to claim CPF Cash Top-up Relief for his wife because her income in 2019 was more than $4,000.
|Top-up amount to wife's Special Account in 2020|
Wife's annual income in 2019
CPF Cash Top-up Relief for Year of Assessment 2021
Amount of relief
The maximum CPF Cash Top-up Relief per Year of Assessment 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 the cash top-up amount limit for computing tax relief.
Amount of relief
Exact amount of cash top-up
$7,000 or more
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.
|Age of recipients||Limit on cash top-up amount for computing tax relief|
|For recipients below age 55||Current Full Retirement Sum (FRS) – Special Account (SA) savings – Net SA savings withdrawn under CPF Investment Scheme (CPFIS) for investments that have not been completely disposed of|
|For recipients aged 55 years and above|
Current Full Retirement Sum (FRS) –
Retirement Account (RA) savings*
The maximum top-up amount a recipient aged 55 years and above can receive in his/her Retirement Account is determined by the "
Current Enhanced Retirement Sum – Retirement
Account savings". This is to allow such recipients to commit higher amounts to CPF LIFE (i.e. up to the Enhanced Retirement Sum), 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 – Retirement Account savings).
For the Years of Assessment 2021 and 2022, the applicable Full Retirement Sum and Enhanced Retirement Sum amounts are as shown in the table below. For more information, please refer to CPF Board’s website.
|Year of Assessment||Applicable Full Retirement Sum (FRS) Amount||Applicable Enhanced Retirement Sum (ERS) Amount|
2021 (i.e. for CPF cash top-up made in 2020)
2022 (i.e. for CPF cash top-up made in 2021)
Example 2: Amount of cash top-up does not exceed the limit on cash top-up amount for computing tax relief
Mr Tan is under 55 years old. He makes cash top-ups of $5,000 to his own CPF Special Account and $10,000 to his mother's CPF Retirement Account in 2021 to enjoy tax relief for Year of Assessment 2022.
For Year of Assessment 2022, Mr Tan may claim a total CPF Cash Top-up Relief of $12,000 ($5,000 +$7,000).
Example 3: Amount of cash top-up exceeds the limit on cash top-up amount for computing tax relief
Mr Ong is under 55 years old. He wishes to top-up $7,000 in cash to his own CPF Special Account and his mother’s CPF Retirement Account in 2021 to enjoy tax relief for Year of Assessment 2022. His total Special Account savings, including net Special Account savings withdrawn under CPFIS is $184,000, and his mother's Retirement Account savings is $186,000.
For cash top-ups to Mr Ong’s own account:
|Full Retirement Sum (FRS) in 2021||$186,000|
|Total Special Account (SA) savings and Net SA savings withdrawn under CPFIS for investments that have not been completely disposed of||$184,000|
|Amount of cash top-up in 2021|
(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 have not been completely disposed of")
|$2,000 ($186,000 - $184,000)|
|CPF Cash Top-up Relief for Year of Assessment 2022||$2,000|
While Mr Ong made a cash top-up of $7,000 to his own CPF Special Account, only $2,000 will be eligible for tax relief in view of the limit on the amount of cash top-up that qualifies for tax relief.
For cash top-ups to his mother’s account:
|Enhanced Retirement Sum in 2021||$279,000|
|Full Retirement Sum in 2021||$186,000|
|Mother’s Retirement Account savings||$186,000|
|Amount of cash top-up made in 2021||$7,000|
|CPF Cash Top-up Relief for Year of Assessment 2022 (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.)
Total CPF Cash Top-up Relief for Year of Assessment 2022 = $2,000 ($2,000 from top-up to own account + $0 from top-up to mother’s account).
How to claim
You do not need to claim the CPF Cash Top-up Relief as it 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 current Year of Assessment. The amount of CPF Cash Top-up Relief is incorrect. What should I do?
Can I obtain a refund of the cash top-ups that I have made, if 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, please take note of the overall personal income tax relief cap and evaluate whether you would benefit from the tax relief on your cash top-ups before you make an informed decision on whether to make a cash top-up.