Tax Relief on Cash Top-Ups Made to MediSave Accounts of Family Members and Dependents
01 Mar 2021Parliamentary Question by Mr Don Wee:
To ask the Deputy Prime Minister and Minister for Finance whether the Ministry will consider granting tax relief on cash top-ups made to the MediSave accounts of family members and dependents.
Parliamentary Reply by Deputy Prime Minister, and Minister for Finance, Mr Heng Swee Keat:
We provide tax relief to those who make voluntary cash top-ups to their own MediSave Account (MA), up to the annual CPF contribution cap (which takes into account mandatory CPF contributions) and the overall personal income tax relief cap. Taxpayers can also top up the MA of their family members on their behalf, with the tax relief accorded to the recipients.
The tax relief is subject to caps so that the most well-off do not disproportionately benefit from it.
Besides cash top-ups, members can also use their own MediSave monies to support their family members’ medical expenses, subject to the applicable MediSave withdrawal limits.
The Government will continue to review our policies to ensure they remain relevant and to encourage family support.