How much should I transfer from my OA to SA to save on my income tax. And also I heard it is the best time to do this in January every year? - Seedly
 

Savings

CPF

Income Tax

Asked by Anonymous

Asked on 14 Jan 2019

How much should I transfer from my OA to SA to save on my income tax. And also I heard it is the best time to do this in January every year?

Let me know thank you :)

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Gabriel Tham
Gabriel Tham, Kenichi Tag Team Member at Tag Team
Level 9. God of Wisdom
Answered on 14 Jan 2019

You have to find out your annual limit. You can only get tax relief on cpf based on the annual limit.

Jan is the best time because it can compound the interest for the whole year and is also the time when last year interest is credited.

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As mentioned elsewhere - there is no tax relief for shuffling around CPF balances between OA and SA accounts.

On the timing - I think not so important as the interest is calculated based on the monthly balances - so the benefit will kick in the month subsequent to your action. Given the higher interest on SA, if you are going to do this anyway then best to do ASAP rather than waiting for any particular month of the year.

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Nadine Poh
Nadine Poh
Level 3. Wonderkid
Answered on 06 Mar 2019

Transfering from OA to SA is not counted towards income tax deduction. Only cash top ups to SA will count.

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Kenneth Lou
Kenneth Lou, Co-founder at Seedly
Level 9. God of Wisdom
Answered on 14 Jan 2019

I believe you can only get income tax relief if you actually use cash to top up your CPF SA!

and the limit is up to $14k for personal and $7k for a family member

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