7 Easy Ways to Reduce Your Taxes in Singapore

Tax season has arrived, but don't let it stress you out. Here's a detailed yet simple guide to effectively manage and significantly lower your income tax obligations in Singapore, complete with useful links:

1. Maximize Supplementary Retirement Scheme (SRS) Contributions

The SRS is a voluntary scheme designed to encourage savings for retirement. Contributions directly reduce taxable income for the year. Investments made with SRS funds grow tax-free until withdrawal at retirement.

• Learn more about SRS

2. Voluntary CPF Account Top-ups

Increase your savings and enjoy immediate tax relief by voluntarily topping up your CPF Special or Retirement Account. You can receive up to S$7,000 tax relief per year on these contributions. Additional relief is available when topping up family members’ CPF accounts.

• CPF Voluntary Top-up

3. Parenthood Tax Rebate (PTR)

Encouraging families to grow, the PTR allows parents substantial direct reductions on taxes payable: S$5,000 for the first child, S$10,000 for the second, and S$20,000 each thereafter.

• Parenthood Tax Rebate

4. Working Mother’s Child Relief (WMCR)

Working mothers can enjoy reliefs based on their earned income: 15% for the first child, 20% for the second, and 25% for each additional child.

• Working Mother's Child Relief

5. Parent and Handicapped Parent Relief

Support your dependants and receive tax benefits simultaneously, up to S$9,000 per dependent if living together, or S$5,500 if living apart.

• Parent/Handicapped Parent Relief

6. Course Fees Relief

Claim tax relief of up to S$5,500 annually for fees paid for relevant professional courses, enhancing your career prospects.

• Course Fees Relief

7. Charitable Donations

Donations to approved charities qualify for a 2.5 times deduction of the donated amount, significantly lowering your taxable income.

• Donations Tax Deduction

8. Life Insurance and Investment Policies

Certain life insurance policies and approved investment-linked policies qualify for tax relief, providing you both financial protection and tax benefits.

• Life Insurance Relief

Important Reminder: There's a cap of S$80,000 on total personal income tax relief, so plan wisely to maximize benefits without exceeding this limit.

Making smart use of these reliefs and schemes can substantially reduce your tax bill, freeing up resources to invest in your future or enhance your quality of life.