Q: I am also working as an employee in another company, and contributing to Medisave at the same time. Do I still have to contribute to Medisave as a self-employed person?
A: Yes, if you have a yearly net trade income of more than $6,000.
CPF is based on the total income of a person. Therefore, a self-employed person who is concurrently employed as an employee is also required to contribute to Medisave as a self-employed person. This is the same for employees who hold more than one job.
However, if your total annual income (excluding Additional Wages* from employment) exceeds 12 times the monthly salary ceiling for Ordinary Wages for that year, you can apply to the Board to limit your Medisave contributions as a self-employed person.
Please refer to the following table for the total annual income that qualifies you to limit your Medisave contributions as a self-employed person for 1993 to 2007.
From Total Annual Income
1993 - 2003 $72,000
2004 $66,000
2005 $60,000
2006 - 2007 $54,000
*Additional Wages are wage supplements which are not granted wholly and exclusively for the month. Examples are the annual bonus, leave pay, incentive and other payments made at intervals of more than a month.
Q: Who needs to contribute to Medisave?
A: All self-employed persons who earn a yearly net trade income of more than $6,000 need to contribute to Medisave.
Q: As a Self-Employed person, how much Medisave must I contribute and by when?
A: (a) For self-employed persons who had previously been issued a Notice of Assessment (NOA) /Non-tax advice by IRAS:
Amount of contributions
Payable by
2.17% -8.5% of your income assessed by IRAS, depending on your age group. You will be issued with a “Notice of Computation of CPF contributions (Medisave)” or NOC from IRAS.
30 days from the date of issue of the NOC.
(b) For self-employed persons who had not previously been issued a Notice of Assessment (NOA)/ Non-tax advice by IRAS:
Amount of contributions
Payable by
2.17% -8.5% of an average income of $9,000 per year, depending on your age group.
31 May of the following year.
Q: As a Self-Employed person, how much Medisave must I contribute and by when?
A: (a) For self-employed persons who had previously been issued a Notice of Assessment (NOA) /Non-tax advice by IRAS:
Amount of contributions
Payable by
2.17% -8.5% of your income assessed by IRAS, depending on your age group. You will be issued with a “Notice of Computation of CPF contributions (Medisave)” or NOC from IRAS.
30 days from the date of issue of the NOC.
(b) For self-employed persons who had not previously been issued a Notice of Assessment (NOA)/ Non-tax advice by IRAS:
Amount of contributions
Payable by
2.17% -8.5% of an average income of $9,000 per year, depending on your age group.
31 May of the following year.
http://mycpf.cpf.gov.sg/Self-Employed/Gen-Info/FAQ/se_Medisave.htm#tbl_bSo assuming , my friend is using another person's identitiy to declare the deal , the person will be liable to pay income tax if one's income per year is more than $25000 , plus contribute maximun 8.5% if the commission earned to CPF medisave. Am i rite ?
