Sunday 22 September 2013

Parenthood Rebate for Self Employed

This has been a scheme that have been around for a few years but I did not really knew about it till I was browsing through the CPF website a few years back.

This basically allows you to claim up to 3 days of parenthood child care leave from the government. We are granted 6 parenthood child care leave per annum but the government is only going to pay for 3 days. The awareness of this scheme is basically more applicable for those self employed. For those employed, your HR department will handle the claim.

The limit you can claim per day is $500. You can go to the CPF website and under the self employed section, you should be able to find the on-line claim for parenthood child care leave.

For self employed, other things to take note is to try to contribute to your SRS and CPF to reduce your tax liabilities which have been widely covered. For your CPF, you can use it finance your house mortgage payments so I don't see any huge disadvantage in contributing.

As for SRS, you can use it to buy blue chips stocks or unit trust and would be a good supplement to your retirement fund.

The current cap for CPF contribution for self employed is around $30,000 and for SRS will be around $11,500.