How is tax relief computed for my cash top-ups?
If your recipient is not eligible for Matched Retirement Savings Scheme (MRSS):
You can enjoy tax relief of $8,000 per year on cash top-ups to yourself and another $8,000 per year on cash top-ups to your loved ones, up to the prevailing Full Retirement Sum (FRS).
You can enjoy tax relief of $8,000 per year on cash top-ups to yourself and another $8,000 per year on cash top-ups to your loved ones, up to the prevailing Full Retirement Sum (FRS).
For more information on the conditions for tax relief, you may refer to this FAQ.
Below are some examples of tax relief computation:
Example 1: If you make a cash top-up of $10,000 to a recipient (self/loved one) whose limit to the prevailing FRS is less than $8,000.
- For example, if the recipient’s limit to the prevailing FRS is $2,000
- Estimated tax relief amount = $2,000
Example 2: If you make a cash top-up of $12,000 to a recipient (self/loved one) who has already reached the prevailing FRS.
- Estimated tax relief amount = $0
If your recipient is eligible for MRSS:
Your cash top-up will first enable the recipient to enjoy the matching grant of up to $2,000 per year from the Government and will thus not be eligible for tax relief. You can continue to enjoy tax relief on cash top-ups that do not attract the MRSS matching grant ($8,000 per year for top-ups to yourself and another $8,000 per year for top-ups to your loved ones).
Your cash top-up will first enable the recipient to enjoy the matching grant of up to $2,000 per year from the Government and will thus not be eligible for tax relief. You can continue to enjoy tax relief on cash top-ups that do not attract the MRSS matching grant ($8,000 per year for top-ups to yourself and another $8,000 per year for top-ups to your loved ones).
For more information on the conditions for tax relief, you may refer to this FAQ.
Below are some examples of tax relief computation.
Example 1: If you make a cash top-up of $3,000 to an MRSS-eligible recipient (self/loved one), who has yet to receive any cash top-ups this year:
- Estimated matching grant your recipient will enjoy = $2,000
- Estimated tax relief amount = Total top-up amount - Matching grant amount = $3,000 - $2,000 = $1,000
Example 2: If you make a cash top-up of $3,000 to an MRSS-eligible recipient (self/loved one) who has already received $2,000 of cash top-ups this year:
- Estimated matching grant your recipient will enjoy = $0
- Estimated tax relief amount = Total top-up amount - Matching grant amount = $3,000 - $0 = $3,000
This information is sourced from CPF
Related questions
From 2025, how are the matching grants and tax relief determined for my cash top-ups made to a senior eligible for the Matched Retirement Savings Scheme?
Do I enjoy tax relief for cash top-ups made to persons with disabilities?
Am I eligible for tax reliefs when I make a cash top-up to my/my loved ones' retirement savings?
How much tax relief can I enjoy when I make cash top-ups?
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