Clause 4

by deleting subsections (4) and (5) and substituting the following subsections:“(4) Notwithstanding subsection (1)(a) but subject to subsection (6), where a contribution is made by an employer in any year to the medisave account of his employee maintained under the Central Provident Fund Act (Cap. 36), the contribution up to the maximum amount referred to in subsection (5) shall not be deemed to be income accruing to the employee.(5) The maximum amount is $1,500 less —

any previous contribution made by the same or another employer to that medisave account in that year where the contribution is not deemed to be income under subsection (4); and

any previous contribution made to that medisave account in that year that is exempt from tax under section 13(1)(jc).”;

by deleting the definition of “relevant amount” in subsection (12) and substituting the following definition:“ “relevant amount” means the amount of contributions which would have been required to be made by the relevant employer had such contributions been obligatory under the Central Provident Fund Act in respect of —

the overseas total wages paid to an employee in any year less the aggregate in that year of such part of the overseas ordinary wages paid to the employee in every month in that year as exceeds $4,500 (being a month before September 2011) or $5,000 (being the month of September 2011 or any subsequent month); or

$79,333 (in relation to the year 2011) or $85,000 (in relation to the year 2012 and every subsequent year),whichever is the lesser;”; and

by deleting paragraph (b) of the definition of “specified amount” in subsection (12) and substituting the following paragraphs:“(b)in relation to the year 2006, 2007, 2008, 2009 or 2010, the difference between $76,500 and the total ordinary wages paid to the employee in that year; and for this purpose, any amount of ordinary wages paid to the employee for any month in the year in excess of $4,500 shall be disregarded;

in relation to the year 2011, the difference between $79,333 and the total ordinary wages paid to the employee in that year; and for this purpose, any amount of ordinary wages paid to the employee for any month in the year in excess of $4,500 (being a month before September 2011) or $5,000 (being the month of September 2011 or any subsequent month) shall be disregarded; and

in relation to the year 2012 and every subsequent year, the difference between $85,000 and the total ordinary wages paid to the employee in that year; and for this purpose, any amount of ordinary wages paid to the employee for any month in the year in excess of $5,000 shall be disregarded;”.