MSTU tax relief scheme expanded

Parents-in-law and grandparents-in-law now covered under the Minimum Sum Topping-Up scheme.

Minister of State Tan Chuan-Jin said the coverage expansion, which will allow family members to top up the accounts of these extended relatives, should take effect by January 1, 2013 after the amendment of the Central Provident Fund and Income Tax Act.

Under the current MSTU scheme, members are limited to contribute to the accounts of their parents, grandparents, spouse and siblings. "In response to public requests, we will extend top-ups under MSTU to parents-in-law and grandparents-in-law as well."

"With this enhancement, the MSTU becomes an even broader avenue to help CPF members boost retirement savings for themselves and their loved ones, and I hope Singaporeans will continue to take advantage of it," he said.

"The Minimum Sum Topping-Up (MSTU) Scheme, which provides tax relief for voluntary contributions to the CPF savings of our family members, was introduced precisely to help us contribute to the CPF savings of our loved ones, and especially to our parents and grandparents, who may not have saved enough for retirement," he added.