Self-employed persons who may also be employees are allowed relief on 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:
You will be automatically allowed self-employed CPF relief if you have assessable net trade income.

Amount of CPF Relief

CPF Relief Cap for Self-Employed Persons

Year of Assessment

2013 to 2015

2016

2017 to 2021

Net Trade Income Ceiling

$85,000
($5,000 x 17mths)

$85,000
($5,000 x 17mths)

$102,000

($6,000 x 17 mths)

CPF contribution rate

36%

37%

37%

CPF Relief Cap

$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 2020.

For YA 2021, 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 2020 if you have no assessable net trade income for the Year of Assessment 2021.

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 2021, you must have made the contribution by 31 Dec 2020.

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 'Medisave Payment Form for 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.