KEY CHANGES COME 1 JULY 2007... Employer and Employee CPF Contribution Rate How Do I Contribute? What Is SME Rebate Scheme?   SELF-EMPLOYED CORNER WANT HASSLE-FREE LICENCE RENEWAL? PAY MEDISAVE REGULARLY. SNAPSHOT OF CPF CHANGES THAT AFFECT YOU, THE SELF-EMPLOYED…       Want Hassle-Free Licence Renewal? Pay Medisave Regularly.   It is time for licence renewal. You log onto the Accounting and Corporate Regulatory Authority’s (ACRA) bizfile website to renew your licence, but your application is unsuccessful because you have not settled your Medisave liabilities. Your staff then reminds you that there will be a penalty if you are late in renewing your licence… Ever had the experience of being unable to renew your business licence in time? Save the trouble by paying your Medisave regularly. Simply sign up to pay your Medisave in 12 monthly instalments by GIRO and enjoy hassle-free licence renewal year after year. What’s more, you can claim tax relief on your contributions and earn a guaranteed interest of 4% per annum on your savings. Sign up for GIRO today to enjoy the benefits of Medisave!   Snapshot Of CPF Changes That Affect You, The Self-Employed…   New Medisave Contribution Rates Self-employed persons will contribute Medisave based on the self-employed income level from 2007 onwards. Depending on your income and age group, you would pay Medisave based on 2.17% to 8.5% of your net trade income. Lower-income self-employed persons may also be eligible for pay-outs in the form of Medisave savings under the Workfare Income Supplement Scheme when you contribute to Medisave. Higher Voluntary Contribution And Tax Deduction Limits The voluntary contribution limit for 2007 has been raised from $25,245 to $26,393. Similarly, the tax deduction limit has been increased from 33% of assessable income (up to $25,245) for 2006 to 34.5% of assessable income (up to $26,393) for 2007. You can thus now save more for your retirement and enjoy tax benefits at the same time.