Thanks to a nudge by Siew Mun, I went to read the CPF Amendment Bill 2021.
Some of my many blogs on the CPF have become outdated because of this Bill.
The changes which interest me most are the following and they will take effect from 1 January 2022:
- Enjoy tax relief when we top up our loved ones' CPF MA.
I have always been curious why the recipient gets income tax relief and not the giver?
Well, this is now fixed.
- Enjoy up to $16,000 income tax relief when topping up CPF MAs.
We can get up to $8,000 income tax relief for topping up our loved ones' CPF MAs.
We can also get up to $8,000 income tax relief for topping up our own CPF MA.
Take note that this income tax relief cap is shared by the RA, SA and MA.
So, previously, we would not say "Top Up" to MA but "Voluntary Contribution" to MA....
