Medisave is a national healthcare savings scheme. Working individuals set aside part of their monthly income in their Medisave Account for future hospital expenses for themselves and their families. Medisave was extended to self-employed persons who are Singaporeans or Singapore Permanent Residents (SPRs) in July 1992. Besides saving for your healthcare needs, your Medisave savings can be used to pay the premiums for Medishield, a medical insurance scheme for serious or prolonged illnesses. What's more, Medisave contributions are tax deductible and also earn a minimum interest of 4% per annum.
	1.	How do you define a self-employed person?
	2.	What should I do as a new self-employed person?
	3.	Who needs to contribute to Medisave?
	4.	What is "net trade income"?
	5.	How much must I contribute and by when?
	6.	I have more than one source of net trade income. Do I have to contribute Medisave for all of them.
	7.	What if I do not have any net trade income for the year?
	8.	How can I check whether I have any Medisave contributions payable?
	9.	Can I renew/apply my licence if I have outstanding Medisave contributions?
	10.	How can I make payment?
	11.	In addition to the Medisave I am required to pay as a self-employed, can I make voluntary contributions to the Ordinary and Special Accounts as well?
	12.	Can I make Medisave contributions together with my employees using the CPF Payment Form (CPF 91)?
	13.	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?
		ANNEX A Categories of Self-Employed Licence Holders
		ANNEX B Medisave Contribution Rates
		ANNEX C Tax Deductions On CPF Contributions
	1. How do you define a self-employed person?
	A self-employed person is defined as any Singapore citizen or Singapore Permanent Resident (SPR) who derives income from Singapore or from outside Singapore through any trade, business, profession or vocation excluding employment under a contract of service.
	2. What should I do as a new self-employed person?
	All new self-employed persons are required to register with the Board when they commence business. If you are already a licence-holder, the Board will automatically register you and inform you when it is done. Some examples of the different types of licence issued by the respective Ministries can be found in Annex A.
	3. Who needs to contribute to Medisave?
	All self-employed persons who earn a yearly net trade income of more than $6,000 need to contribute to Medisave.
	4. What is "net trade income"?
	"Net trade income" is your gross trade income minus all allowable business expenses, capital allowances and trade losses as determined by the Inland Revenue Authority of Singapore (IRAS). It excludes income from share dividends, employment and interest from savings.
	5. How much must I contribute and by when?
	(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. For more details on the Medisave contribution rates, please refer to Annex B.
	6. I have more than one source of net trade income. Do I have to contribute Medisave for all of them? Yes. Your Medisave contributions are based on the yearly net trade income from ALL your trades.   Example   Trade I : Sole proprietorship (for year ended 31 Dec 2007)   $ Net profit from business   3,067 Add:Sole proprietor's salary from business   12,000 Net trade income I   15,067 Trade II : Partnership (for the year ended 31 Dec 2007)     Share of profit from business   70,000 Less:Capital allowance   6,000 Net trade income II   64,000 Total net trade income (Trades I & II)   79,067 Medisave contributions payable by persons below 35 years and earning net trade income above $18,000 (1 Jan - 31 Dec 2007) at 6.5% of $79,067 is   5,139 Maximum amount of Medisave contributions payable by persons below 35 years and earning net trade income above $18,000 (1 Jan - 31 Dec 2007) at 6.5% of $54,000 is   3,510 Medisave contributions payable by self-employed person for 2007 is   3,510 Please refer to Annex B for the maximum amount of Medisave contributions payable for the various years. Click here to calculate your Medisave contributions payable using the Self-Employed Medisave Contribution Calculator.
	7. What if I do not have any net trade income for the year?
	If you had previously been issued a Notice of Assessment (NOA) / Non-tax advice by IRAS, just declare your income to IRAS. IRAS will send you a Notice of Computation (NOC) to notify you of any Medisave contributions payable. If you had not previously been issued a Notice of Assessment (NOA) / Non-tax advice by IRAS, just declare your income to the CPF Board. The Board will adjust your Medisave contributions payable accordingly.
	8. How can I check whether I have any Medisave contributions payable?
	To check whether you have any Medisave contributions payable, click here.   You may also check the amount of Medisave contributions payable by logging on to: a) our CPF website using your SingPass, or b) any AXS Station using your CPF Phone PIN.
	9. Can I renew/apply my licence if I have outstanding Medisave contributions?
	Licensing authorities will only process self-employed persons’ licence renewal/application if their Medisave contributions are up-to-date.
	To keep your Medisave contributions up-to-date, you can pay your Medisave contributions in full or sign up GIRO to pay by monthly instalments upon making an upfront payment.
	For your convenience, all licensing authorities have updated information on your Medisave contributions status through computer links to the Board. Hence, there is no need to show proof of payment to the licencing authorities if you had paid your Medisave contributions in full or signed up GIRO for instalment payments at least one week before your licence renewal/application date.
	10. How can I make payment?
	You can pay your Medisave contributions by the following payment modes:     1. E-payment Log in to our CPF website to make payment online if you have internet banking facilities with UOB/DBS/Citibank. 2. GIRO Click here to check the status of your new GIRO application.   Sign up to pay monthly instalments through GIRO upon making an upfront payment. Click here to estimate your Medisave instalment plan using the Self-Employed Medisave Instalment Calculator. 3. NETS/Cashcard   Make payment at any AXS Station or SingPost. 4. Cheque Make your cheque payable to CPF Board, together with the "Medisave payment form for Self-Employed" (Form SE 3) or "CPF/Medisave contribution form for Self-Employed" (Form SE 2). 5. Cash Make payment at any SingPost Office, together with the "Medisave payment form for Self-Employed" (Form SE 3) or "CPF/Medisave contribution form for Self-Employed" (Form SE 2).
	11. In addition to the Medisave I am required to pay as a self-employed person, can I make voluntary contributions to the Ordinary and Special Accounts as well?
	Yes. Just log on to our CPF website using your SingPass and complete the online form "Voluntary Contributions to All 3 CPF Accounts by Self-Employed" before you make your voluntary contributions. You can also log on to any AXS Station using your CPF Phone PIN to apply to make voluntary contributions to all 3 CPF accounts. Your voluntary contributions will be apportioned and credited into your Ordinary, Special and Medisave accounts for the year in which it is paid. Voluntary contributions cannot be backdated to previous years. You may make voluntary contributions up to the prevailing voluntary contribution limit. Click here for more information. For Tax Deductions on your CPF Contributions, please refer to Annex C.
	12. Can I make Medisave contributions together with my employees using the CPF Payment Form (CPF 91)?
	No. To enable the Board to determine your Medisave contributions made for the year correctly, self-employed persons are required to make their Medisave contributions separately from their employees by using the form "CPF/Medisave Contribution Form for Self-Employed" (Form CPF SE 2).
	13. 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?
	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.
	ANNEX A Examples of Licence Types
	MINISTRY EXAMPLES OF LICENCE TYPES Environment & Water Resources Electrical and Cabling Contractors Food Manufacturers Hawkers Operators of Eating/Food Establishments Operators of Foodstalls General Waste Collectors Plumbers Finance Business (Sole Proprietors & Partners) Appraisers Housing Agents Money Changers Operators of Remittance Shops Remisiers Financial Advisers Home Affairs Private Driving Instructors Operators of Entertainment Establishments Operators of Massage Establishments Private Investigators Operators of Security Guard Agencies Manpower Factory Occupiers Licensees of Employment Agencies National Development Animal & Bird Shopkeepers Farm/Fish Culture Farm/ Hatchery Licensees Fishermen Private Car Park Operators Trade & Industry Tour Guides Transport School & Private Hire Bus Drivers Taxi Drivers Trishaw Riders Harbour Craft Operators (This list may change from time to time)
	ANNEX B Medisave Contribution Rates Period Age as at 1 January Below 35 Years 35 to below 45 Years 45 Years and above Jul-Dec 92 3% (Maximum $1080*) 3% (Maximum $1080*) 3% (Maximum $1080*) Jan-Dec 93 3% (Maximum $2160) 3% (Maximum $2160) 3% (Maximum $2160) Jan-Dec 94 4% (Maximum $2880) 4% (Maximum $2880) 4% (Maximum $2880) Jan-Dec 95 5% (Maximum $3600) 5% (Maximum $3600) 5% (Maximum $3600) Jan-Dec 96 6% (Maximum $4320) 6% (Maximum $4320) 6% (Maximum $4320) Jan-Dec 97 6% (Maximum $4320) 7% (Maximum $5040) 7% (Maximum $5040) Jan 98 - Dec 02 6% (Maximum $4320) 7% (Maximum $5040) 8% (Maximum $5760) Jan-Dec 03 6% (Maximum $4320) 7% (Maximum $5040) 8% (Maximum $5760) Jan-Dec 04 6% (Maximum $3960) 7% (Maximum $4620) 8% (Maximum $5280) Jan-Dec 05 6% (Maximum $3600) 7% (Maximum $4200) 8% (Maximum $4800) Jan-Dec 06 6% (Maximum $3240) 7% (Maximum $3780) 8% (Maximum $4320) * based on 6-month period With effect from 2007, self-employed persons will pay Medisave based on their age and net trade income: Period Net Trade Income Age as at 1 January Below 35 Years 35 to below 45 Years 45 Years and above Jan-Dec 07 Above $6,000 to $12,000 2.17% 2.5% 2.83% Above $12,000 to $18,000 Phase in* from 2.17% to 6.5% Phase in* from 2.5% to 7.5% Phase in* from 2.83% to 8.5% Above $18,000 6.5% (Maximum $3,510) 7.5% (Maximum $4,050) 8.5% (Maximum $4,590) * Phase in rates are calculated using the following formulas: Period Net Trade Income (NTI) Age as at 1 January Below 35 Years 35 to below 45 Years 45 Years and above % of NTI % of NTI % of NTI Jan-Dec 07 Above $12,000 to $18,000 [260.4 + 0.1516 (NTI – 12,000)] X 100 -------------------- NTI [300 + 0.175    (NTI – 12,000)] X 100 -------------------- NTI [339.6 + 0.1984 (NTI – 12,000)] X 100 -------------------- NTI
	ANNEX C Tax Deductions On CPF Contributions
	For FY 2006, the maximum tax deduction on compulsory Medisave and voluntary CPF contributions by a self-employed person is 33% of his assessable income, up to $25,245. For FY 2007, the maximum tax deduction on compulsory Medisave and voluntary CPF contributions by a self-employed person is 34.5% of his assessable income, up to $26,393. For more details on tax deductions, please visit the IRAS website at www.iras.gov.sg or call the Business Income Tax Helpline at 1800-356 8611.
Contact Us: For Medisave contribution procedures, Please call the CPF Call Centre at 1800-227 1188 Email to Self-Employed@cpf.gov.sg Or Fax to 6258 2778 For clarification on the computation of net trade income, Please call the Business Income Tax Helpline at 1800-356 8611 Email to iras@iras.gov.sg Or visit their website at www.iras.gov.sg