• CPF (Central Provident Fund) Relief for Employees

    This is an incentive offered to employees to encourage them towards saving for retirement. This amount has a cap to make sure that the CPF Relief is not misused as tax shelter.

    Update: Personal Income Tax Relief Cap

    Starting from the Assessment Year 2018, the personal income tax relief cap has been set at S$80,000. This amount will be applicable on ALL tax relief amounts claimed. This amount also includes any relief you have claimed on CPF contributions (compulsory or voluntary) starting from or after January 1, 2017.

    Furthermore, refunds on accepted CPF contributions made voluntarily will not be permitted. The onus is on you to evaluate if you will benefit from the CPF Relief you will receive on your contributions made voluntarily and make a well-informed decision regarding the same.

    Who is Eligible to Qualify for CPF Relief?

    All Singapore citizen and Permanent Resident employees are eligible for CPF Relief.

    What Contributions Qualify for CPF Relief?

    • Mandatory employee CPF contributions that fall within the purview of the CPF Act are eligible for CPF Relief.
    • Contributions made towards an approved provident fund or a pension account are eligible for CPF Relief.
    • Voluntary contributions made towards Medisave Accounts are eligible for CPF Relief.

    What Contributions Do Not Qualify for CPF Relief?

    • Voluntary CPF contributions made over and above the compulsory contributions within the purview of the CPF Act are not eligible for CPF Relief.
    • CPF contributions made on additional wages received from related employers that go above the cap on CPF are not eligible for CPF Relief. (Additional wages received simultaneously from 2 or more related employers in the same year).
    • CPF contributions made pertaining to your employment overseas, for instance if you are posted overseas or are seconded for work, your (employee) CPF contributions do not qualify for CPF Relief.

    Tax Relief Amount

    The cap on the CPF Relief amount is based on compulsory employee CPF contributions that are made towards Ordinary Wages (OW) and Additional Wages (AW) within the purview of the CPF Act.

    Therefore, in order to claim CPF Relief, your employee contributions should not exceed the OW Ceiling and the AW ceiling which are as follows:

    • Ordinary Wage Ceiling: S$6,000 per month (starting January 1, 2016).
    • Additional Wage Ceiling: S$102,000 less Total Ordinary Wage subject to CPF, where S$102,000 = 17 months X S$6,000.

    Excess Contributions to CPF

    • Voluntary CPF Contributions - If the employer or the employee have surpassed the Ordinary Wage or Additional Wage ceiling, the additional amount will be considered as the voluntary CPF contribution.
    • Excess employee CPF contributions - Such contributions are not eligible to receive CPF Relief.
    • Excess employer CPF contributions – Such contributions will be taxable because income derived from employment include profits or gains from the employment. These contributions should be reported in your tax form under “Employment -Others”. If the voluntary CPF contributions are made by your employer while you have been posted overseas or have been seconded for work, the excess amount will not be taxed.

    Claiming CPF Relief

    There are two ways of claiming CPF Relief: E-Filing and Paper Filing.

    E-Filing:

    • If your employer is a participant of the “Auto-Inclusion Scheme”, then there is no need for you to file a claim to receive your CPF Relief amount. The amount will be granted to you automatically depending on the information that your employer has provided.
    • In case your employer is not a participant of the “Auto-Inclusion Scheme”, then you will have to claim your CPF Relief through the e-filing steps mentioned below:
      • Go to “myTax Portal” and login using your IRAS PIN or SingPass.
      • Navigate to “Individuals > File Form B/B1”.
      • Click on “Edit My Tax Form”.
      • Navigate to “4. Deductions, Reliefs and Parenthood Tax Rebate”.
      • Go to the option, “CPF/Provident Fund”.
      • Click on “Update” to enter your claim.

    Paper Filing:

    • If your employer is a participant of the “Auto-Inclusion Scheme”, then there is no need for you to file a claim to receive your CPF Relief amount. The amount will be granted to you automatically depending on the information that your employer has provided.
    • In case your employer is not a participant of the “Auto-Inclusion Scheme”, then you will have to fill Form B1 and Form B as follows:
      • Form B1 - Go to Page 2 of Form B1 and complete the details under item 6(f).
      • Form B - Go to Page 3 of Form B and complete the details under item 6(f).

    Re-filing to claim CPF Relief

    You may re-file to claim your CPF Relief if you have forgotten to claim CPF Relief or have submitted incorrect CPF Relief amount.

    If you have forgotten to claim your CPF Relief, please follow the steps below:

    • In case you have filed your tax return online, you can re-file your taxes within 14 days after your original submission. While re-filing, you should provide all details pertaining to your income, expenses, donations and your relief claims. Upon successful re-filing, the newly filed tax return will override your previously filed tax return.
    • In case you have filed your tax return through paper filing, then you must email IRAS and provide the below-mentioned details and/or documents:
      • Your request to revise or claim your CPF relief.
      • Form IR8S, “Details of employer's/employee's contributions to CPF” or Form IR8A, “Return of Employee's Remuneration”, provided by your employer.

    If you have entered incorrect CPF Relief amount, please follow the steps below:

    • In case you have filed your tax return online, you will have 30 days to file for an objection from the date you previously filed your tax bill. Go to “myTax Portal” and use the “Objection to Assessment” e-Service available.
    • If you are not using the e-Service, then you should email the IRAS and provide the below-mentioned details and/or documents:
      • Your request to revise your CPF Relief.
      • Form IR8S, “Details of employer's/employee's contributions to CPF” or Form IR8A, “Return of Employee's Remuneration”, provided by your employer.
    Central Provident Fund
    CPF Accounts
    CPF Schemes
    CPF Withdrawals
    Others
  • reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.