Medisave
 

Hi all,

Want to find out if we start a business, we would have to pay Medisave right? Can our own company pay for us i.e. Expense off by company so that we don't have to fork out of own pocket.

Re: Medisave
 

Hi kitekite

Medisave contribution is only relevant if you are self employed i.e. running a business using a Registered Business (Sole Proprietorship or Partnership). You are obliged to contribute to Medisave if you declare your income (to IRAS) above a certain amount .. $1500 per month?

If you are running your business as a Registered Company, it depends on whether you are paying yourself salary or director's fee. If you are, then you need to treat yourself like you treat your other employee/directors .ie. pay CPF according to the scale provided by the board, split into 3 accounts (Ordinary, Special and Medisave) varying according to salary, age, citizenship/PR-ship. If you are not paying yourself any compensation of any form, then no CPF contribution is required.

As for distribution of Company profits in the form of dividends, that is subject to regular personal income tax but does not attract CPF obligations.

Check out CPF website for more details.

Cheers

Re: Medisave
 

Dividends are not taxable. Only directors fee is taxable!

Yes, company can pay for medisave as an expense.