Does cash top-ups to one another's CPF accounts for loved ones also qualify for a tax rebate? - Seedly
 

CPF

Asked by Anonymous

Asked on 16 Nov 2019

Does cash top-ups to one another's CPF accounts for loved ones also qualify for a tax rebate?

Assuming A and B are siblings and after topping up 7k into their respective SA, they would also like to top up 7k into each other's SA too. Would both of them have 14k tax rebate each? As well as a +14k in their own SA?

0

Answers (3)

Sort By

Most Upvote

  • Most Upvote
  • Most Recent

Yes that is correct. Both siblings will have $14K in SA and $14K tax relief in this case.(not tax rebate)

Edit: To be clear, please note that the tax relief on siblings will not apply if the siblings have an annual income of more than $4K, unless they are handicapped.

The allowable parties with respect to topping up for tax relief are: your parents, parents-in-law, grandparents, grandparents-in-law, spouse and siblings. But you can actually top up for anyone with cash.

0 comments

3
Leslie Koh
Leslie Koh
Level 6. Master
Answered on 16 Nov 2019

Yes, you are right.

Here's the source from CPF website:

In total, you can enjoy tax relief of up to $14,000 per calendar year (maximum $7,000 for self and maximum $7,000 for loved ones). Overall personal income tax relief cap of $80,000 applies for cash top-ups and voluntary contributions to CPF accounts.

0 comments

1
Yixiong Chang
Yixiong Chang
Level 7. Grand Master
Answered on 16 Nov 2019

Take note that you can ONLY earn tax relief on cash top-up to your Sibiling ... IF

His or her income in the preceding year of top-up is $4,000 or below. (This includes salary and even tax-exempt source such as bank interest, stock dividends, pension etc)

or

He or she is handicapped.

So in your mentioned case, unless both parties are not working, they would only earn $7k tax relief for the portion on self top-up.

0 comments

0