Does voluntary top up to our CPF MA counts towards reduced income tax? Or does it only count for CPF SA top up? - Seedly

CPF

Asked by Anonymous

Asked on 21 Nov 2018

Does voluntary top up to our CPF MA counts towards reduced income tax? Or does it only count for CPF SA top up?

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Loh Tat Tian
Loh Tat Tian
Level 6. Master
Answered on 22 Nov 2018

For CPF MA top-up,

If you are an employee, you can write in to your HR to credit more into your medisave (which also allows them additional 1% tax relief for the company), while you enjoy tax relief from the employment.

If you are a self-employed, yes, you will enjoy reduced income tax (depending on your tax bracket). You must declare your self-employment to CPF too.

CPF SA top up confirm counts towards tax-relief (ceveat, its only reserved for FRS, can't use it for BRS).

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Xinyi Lum
Xinyi Lum, Content Strategist at Seedly
Level 5. Genius
Answered on 22 Nov 2018

Yes, it counts!

From IRAS website: "...Voluntary Medisave (VC-MA) contributions may be claimed as tax reliefs to reduce the amount of tax payable."

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Yong Kah Hwee
Yong Kah Hwee
Level 6. Master
Answered on 22 Nov 2018

It counts! :)

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Lok Yang Teng
Lok Yang Teng
Level 6. Master
Answered on 22 Nov 2018

Top up of CPF MA counts too! Here's some conditions by IRAS: Tax Relief for Voluntary Contributions

You may claim tax relief for your voluntary Medisave contributions if:

  • You are a Singapore Citizen or Permanent Resident;
  • You have made voluntary contributions to your Medisave account in the previous year; and
  • You derived any source of income (e.g. from rental, director's fees, etc.) in the year you made the voluntary contributions.

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