How to determine if your insurance is eligible for income tax relief?

This is the information from IRAS:

• Your total compulsory employee CPF contribution, self-employed Medisave/Voluntary CPF contribution and voluntary cash contribution to your Medisave account in 2020 was less than $5,000;

• You paid insurance premiums in 2020 on your own life insurance policy; and

• The insurance company must have an office or branch in Singapore if your policies are taken on or after 10 August 1973.

Assuming that you are the insured for the term insurance policy, you may inform IRAS accordingly when you file the tax. In detail, the amount of relief will be the lower of:

• the difference between $5,000 and your CPF contribution; or

• up to 7% of the insured value of your own/your wife's life, or the amount of insurance premiums paid.

More Details: https://www.iras.gov.sg/irashome/Individuals/Lo...

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