11 April 2012

The Income Tax (Exemption of Voluntary Cash Contribution)(Prescribed Person) Regulations 2012, published on 10 April 2012, shall be deemed to have come into operation on 1 January  2011.

The Regulations give definition to a “prescribed person” ie:

A person is one whose voluntary contribution in cash to the medisave account maintained under the Central Provident Fund Act (Cap. 36) of a self-employed individual is exempt from tax under section 13(1)(jc) of the Act if it is a company which has a contract (not being a contract of service) with the individual in force at the time of making the contribution which provides for —

(a)  the lease or licence of any asset (other than  money) by the company to the individual to enable the individual to carry on his trade, business, profession or vocation; or

(b) the provision of services by the individual to the company, where the individual and the company are carrying on the same trade, business, profession or vocation.

Source: e-Gazette