Q:
|
Who qualifying for CPF Cash Top-Up Relief?
|
|
A:
|
The relief is given to encourage Singaporeans and Permanent Residents to set aside money for retirement needs either in their own CPF accounts or those of family members. To qualify, you must hold a Singapore NRIC and
You and/or your employer on your behalf have made cash top-ups in the preceding year under the CPF Retirement Sum Topping-Up Scheme to your:
1.
|
Special Account (for recipients below age 55); or
|
|
2.
|
Retirement Account (for recipients age 55 and above).
|
You have made a cash top-up in the preceding year under the CPF Retirement Sum Topping-Up Scheme to the Special/Retirement Accounts of your:
1.
|
Parents or Parents-in-law
|
2.
|
Grandparents or Grandparents-in-law
|
3.
|
Spouse, and/or
|
4.
|
Siblings.
|
|
Q:
|
How tax relief apply?
|
A:
|
The tax relief is only cash top-up. The relief does not apply when the top-up is carried out by transferring funds from your own CPF Account to your own or a family member’s Special/Retirement Account.
|
Q:
|
How to claim tax relief for cash top-up for spouse or siblings?
|
A:
|
To claim tax relief for cash top-ups for your spouse or siblings, the spouse or siblings must not have an annual income exceeding S$4,000 in the year preceding the year of top-up.
Annual income includes taxable income (e.g trade, employment and rental), tax exempt income (e.g. bank interest, dividends and pension) and foreign-sourced income regardless of whether it has been remitted to Singapore. The income threshold does not apply to parents, grandparents, handicapped spouse or handicapped” siblings.
|
Q:
|
What is the maximum CPF Cash Top-Up Relief per Year of Assessment (YA)?
|
A:
|
The maximum CPF Cash Top-Up Relief per Year of Assessment (YA) is S$14,000 (maximum S$7,000 for self, and maximum S$7,000 for family members).
|
Q:
|
What is the limit on Cash Top-Up amount for Computing Tax Relief?
|
A:
|
The maximum top-up amount a recipient aged 55 years and above can receive in his/her Retirement Account (RA) is determined by the Current Enhanced Retirement Sum (ERS) – Retirement Account (RA) Savings, which exceeds the above limit on cash top-up amount for computing tax relief. This is to allow such recipients to commit higher amount to CPF LIFE (i.e. up to the ERS), if they choose to receive higher payouts under CPF LIFE.
However, to keep tax benefits focused on supporting basic retirement needs, there is no tax relief for any amount of cash top-up which exceeds the limit on cash top-up amount for computing tax relief (i.e. Current Full Retirement Sum (FRS) – Retirement Account (RA) savings).
|
Q:
|
How to claim tax relief?
|
A:
|
You do not need to claim this relief. The relief is granted automatically to those who are eligible based on record sent to us by the CPF Board.
|
FAQ
