CPF Central Provident Fund Board Singapore : Self-Employed Scheme

Organization : Central Provident Fund Board
Scheme Name :Self-Employed Scheme
Country: Singapore

Website :https://www.cpf.gov.sg/member

Self-Employed Scheme:

Are you a Self-Employed Person? Learn more about your Medisave obligations under the Self-Employed Scheme.

Related : CPF Central Provident Fund Board Singapore Private Medical Insurance Scheme : www.statusin.org/11118.html

Who is a Self-Employed Person?:
If you are a person with your own business, you work for yourself and you are in the position to realise a business profit or loss, you are considered a Self-Employed Person. Your income is derived from the buying and selling of goods, or from providing professional or personal services.

A Self-Employed Person can be a sole-proprietor or a partner in a partnership.

Visit the Inland Revenue Authority of Singapore (IRAS) website to read more on the definition of a Self-Employed Person.

Who needs to contribute to Medisave?:
All Self-Employed Persons who earn an annual Net Trade Income (NTI) of more than $6,000 need to contribute to Medisave.

NTI is your gross trade income minus all allowable business expenses, capital allowances and trade losses as determined by IRAS.

How much Medisave do I need to contribute as a Self-Employed?:
Your Medisave contribution depends on your age and annual NTI. You can refer to the Medisave contribution rates for Self-Employed Persons.

You can also use the Self-Employed Medisave Contribution Calculator to calculate the amount of Medisave you need to contribute.

When do I need to contribute as a Self-Employed?:
When the actual NTI for the year has been assessed, IRAS will send you a ‘Notice of Computation’ (NOC) stating your actual Medisave payable.

If the amount you need to pay is more than what you have already contributed, you can then top up any shortfall within 30 days from the date of the NOC. However, if the amount contributed is more than what you need to pay, the excess contributions will be carried forward to offset against your future Medisave payable.

If you have not been issued with a ‘Notice of Assessment’ (NOA) or income tax advice by IRAS, you can declare your actual income using Form IRAS 144 at any CPF Service Centre, Singapore Post Office, or online using your SingPass. You would need to make the Medisave contributions based on the declared income by 31 May of the following year. For example, the Medisave payable for 2013 is due on 31 May 2014.

Evaluate:
Why do I need to contribute to Medisave?:
As a Self-Employed Person, you do not receive regular Medisave contributions from employers. It is therefore important to contribute regularly and make sure you have sufficient Medisave savings for your future healthcare needs. This is especially important during old age, when you may have stopped working.

When you contribute to Medisave, you enjoy:
Use of Medisave savings for:
Healthcare expenses for yourself and your family
Premium payment for MediShield or Medisave-approved private integrated plans

Up to 5% interest per annum on your Medisave savings, inclusive of the additional 1% interest per annum paid on the first $60,000 of combined CPF savings

Tax relief of up to 37% of your annual NTI, up to the prevailing CPF Annual Limit of $31,450 from 2015 onwards

Hassle-free licence renewal and application

You may also be eligible for Workfare Income Supplement (WIS) payouts of up to $2,333 annually. Visit the Workfare website to find out more.