You can claim relief from the Inland Revenue Authority of Singapore (IRAS) when you top-up your CPF Retirement Account or Special Account and the CPF accounts of your loved ones.
The personal income tax relief is capped at S$80,000 and is applicable starting from YA 2018. This cap applies to reliefs claimed under income tax, including cash top-ups made to Retirement/Special Accounts starting from 1 January 2017.
Refunds will not be provided for any accepted cash top-ups. Hence the IRAS insists that taxpayers keep in mind the personal income tax relief cap before claiming relief.
The CPF cash top-up relief is offered to Singapore citizens as well as Permanent Residents so they can set aside more money for their retirement needs or the retirement needs of their family members when they top-up CPF accounts.
To be eligible for this relief, you must have your Singapore NRIC plus satisfy the following conditions:
Top-up relief is applicable on cash top-ups only. Hence, you cannot claim relief for any top-ups you have made by moving money from your personal CPF Account into the Special or Retirement Accounts of your family members.
If you wish to claim relief on the cash top-ups you make to your spouse's or siblings' CPF accounts, note that their annual income should not have exceeded S$4,000 in the previous year of the top-up made.
Annual income here refers to income derived from all sources including employment, rental, income exempted from tax such as interests or dividends, income derived from foreign sources, etc.
The income threshold is not applicable to handicapped siblings or spouse, parents and grandparents.
A maximum of S$14,000 can be claimed as CPF Cash Top-up Relief every YA where a maximum of S$7,000 can be claimed for top-ups made to your own CPF account and S$7,000 to the CPF accounts of your family members.
Here's how you can claim CPF top-ups made to your own or your family members' CPF accounts:
|Cash Top-up made||Relief Amount|
|Below S$7,000||The top-up amount|
|S$7,000 and above||S$7,000|
There are limits on the cash top-up amount that is eligible to claim relief:
|Recipient's age||Cash top-up amount limit for calculating tax relief|
|If the recipient is below 55 years old||Existing Full Retirement Sum (FRS) – Special Account (SA) savings – Net Special Account savings taken from the CPF Investment Scheme (CPFIS) for active investments|
|If the recipient is 55 years old +||Existing Full Retirement Sum (FRS) – Retirement Account (RA) savings.|
Find below the FRS and ERS (Enhanced Retirement Sum) amounts for YA 2017 and YA 2018:
|Year of Assessment||Valid FRS Amount||Valid ERS Amount|
|YA 2017 (for CPF cash top-ups made in 2016)||S$161,000||S$241,500|
|YA 2018 for CPF cash top-ups made in 2017)||S$166,000||S$249,000|
There is no need for you to claim this relief. If you are eligible to receive this relief, it will be granted to you automatically by the IRAS based on the records sent to the CPF Board.