Just before end of 2016, Max did a voluntary cash top up of $7k to his CPF-SA savings. As you can see from the dates of transfer, the transfer was a decision at the eleventh-hour. The transfer is split into two transaction ($3.8k + $3.2k) due to the daily transfer limit on my bank account.
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Max's voluntary cash top-up to CPF SA in year 2016 |
It was fortunate that the second transfer confirmed on 1 Jan 2017 was still eligible for the tax relief for YA 2017. I guess it's because I made the transaction on 30 Dec 2016 and the process took 2 days to be confirmed, so technically, the transfer was made in year 2016.
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Max's personal relief from CPF cash top-up for YA 2017 |
So rightfully, being in the 7% tax rate income bracket, I was looking forward to receive a tax savings of $490 (7% ......