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Deputy Prime Minister and Minister
for Finance Lee Hsien Loong announced at this year’s Budget Speech that all
cash top-ups made from this year under the CPF Minimum Sum Topping-Up Scheme
will now enjoy a tax relief of up to $7,000 per year, instead of $6,000
previously.
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The objective of Minimum Sum
Top-Up is to encourage more Singaporeans to contribute to the financial
security of their loved ones.
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The CPF Minimum Sum Topping-Up scheme was first
introduced in 1987. These top-ups can be in cash or from members’ CPF
Ordinary Accounts.
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The tax relief for cash
contribution was previously only applicable to those who top up their own
Retirement Accounts and those of their parents’ and/or their grandparents
who are 55 years and above. This benefit has now been extended to topping up
for non-working spouses as well. To qualify for the tax relief, the
non-working spouse of the CPF member must be 55 years and above, and earn
$2,000 or less in the preceding year.
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The maximum amount that a member
can top up is the difference between the Minimum Sum the topping up recipient
is required to set aside and his CPF regrossed balance (excluding Medisave)
when he reaches age 55. This means that for a topping up recipient who reached
age 55 in December 2003, and has a CPF regrossed balance of $30,000, the
maximum top up he can receive is $50,000 (Minimum Sum of $80,000 less
$30,000).
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Those who wish to enjoy the
increased tax relief and the higher CPF interest rate for the Retirement
Account (currently 4% per annum) can download application
forms online or obtain application forms for Minimum Sum Top-Up from all
CPF offices.
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More details of the Topping-Up
Scheme are available in the online Minimum
Sum Scheme handbook.
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Public Enquiries:
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Members of the public can e-mail Retirement@cpf.gov.sg,
or call the CPF Call Centre at 1800-227-1188 (press 5, followed by 1) for more
information.
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Source: CPF News Release 23 Mar
2004
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Enhancements to CPF Minimum Sum Topping-Up Scheme
